Over the last several years, pervasive fraud in Florida’s no-fault auto insurance system has cost consumers nearly $1 billion. Fraud costs in the Sunshine State have been rapidly exploding and are far worse than in other states. As a result, Florida has gained the dubious distinction of being the nation’s most fraud-riddled state. According to the National Insurance Crime Bureau (NICB), staged accidents and certain unscrupulous medical providers and unethical personal injury attorneys have landed four Florida cities in the U.S.’s top 10 personal injury fraud hotbeds: Tampa, Miami, Orlando and Hialeah.

Florida’s no-fault system was created with the intent of providing affordable, quick and fair compensation to accident victims, without regard to fault. Regrettably, this system is completely broken and plagued by fraud.

Rampant no-fault fraud in Florida will continue to increase insurance costs for consumers if not swiftly brought under control. While important change is always difficult to accomplish, there is a growing recognition among policy leaders and insurance consumers in Florida that the current no-fault system is unsustainable, and honest consumers and businesses need to be better protected.

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