The Insurance Information Institute (I.I.I.) projects that Florida drivers will pay out about $658 million this year as a result of fraudulent no-fault claims.

Premiums are up about 7 percent from 2010 and up a devastating 122 percent in just two years, explains I.I.I. President Dr. Bob Hartwig.

Hartwig presented these latest calculations in November at the annual Florida Chamber of Commerce Insurance Summit in Orlando.

His report has further touts the need for an overhaul of Florida's Personal Injury Protection law. Gov. Rick Scott and Florida Chief Financial Officer Jeff Atwater are lead supports of the proposed reform.

Currently, all drivers registered in Florida must carry “no fault” insurance, which allows for up to $10,000 in medical care for injuries sustained in a car crash, no matter who caused the wreck. The cost of buying personal injury protection (PIP) coverage and the payout amounts have both risen substantially.

Following the close of the second quarter of 2011, Florida's average claim cost was $8,549, the third-highest in the country. The latest numbers show claims inching even closer to the $10,000 limit.

Increased fraud is causing the fast-climbing hike, according to the insurance industry. It seems stories of suspected PIP fraud or convictions of PIP fraud flood Florida media daily. Just yesterday, Scott released a video of what appears to be a staged accident.

Several passengers got out of a white car before the driver backed up into the road. The passengers stood on the sidelines watching as another car hit the back of the white car. Further details of this incident will be released at a later time.

This video came about just a few weeks after Scott's office produced a video of policyholders describing their rates at round table discussions. A select group of insurance agents brought policyholders to the discussion to better illustrate the impact PIP fraud has on insurance rates.

In the video, policy holder Eunice Butts, a disabled veteran from Tampa, says that her insurer increased the annual premium of her two cars to $2,500 earlier this year. In August, she says she had to switch to a special policy that offered a discount for American Legion members.

According to Butts, who owns a 2011 Kia and a Hummer, the price of auto insurance and uninsured drivers are among the top issues that affect her life.

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Suspected PIP Fraud Caught on Camera

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