Higher costs and increased frequency of medical testing andchiropractic treatment have driven up no-fault auto injury claimscosts in Florida, according to the Insurance Research Council.

A study titled by the nonprofit industry research group "FloridaAuto Injury Insurance Claim Environment" found that between 2002and 2005 auto injury economic loss claims rose 18 percent onaverage, while average claims payments increased 24 percent.

The report comes with seven months to go before the legalframework for the no-fault system is due to expire.

IRC said from 2002 to 2005, the general inflation rate was 9percent, and the inflation for medical services was 13 percent.

Florida's personal injury protection law, also known as a"no-fault" system, was designed to ensure that those injured in anauto accident would be swiftly compensated, but critics haveattacked it as vulnerable to fraud.

The system is set to sunset in October unless state lawmakersact to extend it during the current legislative session. FormerGovernor Jeb Bush vetoed legislation last year that would havemaintained the system until 2009, saying the bill lacked reformsincluding a medical fee schedule and a cap on attorneys' fees.

"The trends documented in this report--rapidly increasing costs,less serious injuries, explosive growth in the utilization ofchiropractic services, and extensive attorney involvement--explainwhy the current no-fault system is widely viewed as broken," saidElizabeth A. Sprinkel, senior vice president of the IRC.

In compiling its data, the IRC examined detailed claiminformation from more than 4,000 claims closed with payment during2005. Ten insurers, representing roughly 60 percent of the 2005private passenger auto insurance market in Florida, participated inthe study.

Among the specific factors contributing to rising costs, the IRCfound, is the increased use of magnetic resonance imaging.

The percentage of claimants who underwent an MRI rose from 26percent in 2002 to 33 percent of all claimants in 2005. The costsof computerized tomography, or CT, services also played asignificant role, rising 31 percent between 2002 and 2005.

The use of chiropractic services also increased dramaticallybetween 2002 and 2005, according to the IRC. The study found thatthe percentage of PIP claimants receiving such treatment rose from33 percent to 44 percent during that time period, with increasingcharges from chiropractors magnifying the cost increase forinsurers.

According to the IRC, the average total charge for chiropracticservices increased by 35 percent between 2002 and 2005.

While the costs of PIP claims increased, the IRC found that thenumber of serious auto accidents in Florida actually decreased.

Seventy-one percent of PIP claimants had no disability resultingfrom their injuries in 2005, compared with 67 percent in 2002 and66 percent in 1997, according to the study.

The percentage of claimants who suffered fewer than 10 days ofrestricted activity also increased to 87 percent in 2005 from 81percent in 1997 and 86 percent in 2002. Those who were injured inan accident were more likely to hire an attorney in 2005, however,according to the study. The IRC found that 45 percent of claimantshad hired an attorney in 2005, compared with just 34 percent in2002.