For several years, Florida consumers have enjoyed relatively low auto insurance rates and have had their pick of reputable auto insurers fighting for their business. However, this period of stability may be in jeopardy due to the personal injury protection (PIP) insurance fraud that is spreading rapidly across the state.

The statistics for auto insurance fraud in Florida are startling. The National Insurance Crime Bureau (NICB) reports that Florida leads the nation with 3,006 staged accident questionable claims from 2007 to 2009, which is over 44 percent higher than the number two state, New York. According to the NICB, Florida has led the nation for the last three years in the number of staged crashes, with a 58 percent increase from 2008 to 2009.

Florida is no stranger to auto insurance fraud; the Miami area has struggled with it for years. However, the problem is no longer localized in one area. It has spread to other cities across Florida, particularly Tampa, Orlando, West Palm Beach, and Hialeah, all of which are included among the top 10 cities in the nation for staged accidents, according to the NICB. Tampa is ranked second in the country and is now the area of the state with the highest auto insurance fraud activity; Miami and Orlando rank second and third. Questionable claims increased by 290 percent in Tampa and by 11 percent in Miami between 2008 and 2009.