Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Insurance Lawyer

UPDATED: Jul 19, 2021

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Insurance fraud hits every driver where it hurts the most: the cost of his or her car insurance policy premiums. These costs are especially high on residents of Florida, as it now leads the nation in auto insurance fraud, according to the National Insurance Crime Bureau (NICB). The NICB is a non-profit organization that receives support from nearly 1,000 property and casualty insurance companies that has a stated mission is to help identify, detect and prosecute those who commit criminal acts involving insurance.

Just how big an impact do Florida drivers take due to auto insurance fraud? More than $80 million in 2011, says NICB. Some criticize Florida’s no-fault auto accident law as making it easy for criminals to stage accidents for cashing in on insurance payouts. Florida’s law has a personal injury protection feature that requires insurers to pay up to $10,000 per occupant of a car, no matter who caused or is responsible for the accident.

While $80 million is a large amount of money, the impact on individual drivers and policy owners is approximately $50 added on to their annual premium, at least in 2010. For 2011, that amount is expected to increase to $83 added to every insurance premium. Considering there are more than 11 million drivers in Florida, the total costs for car insurance fraud in that state may soon pass $1 billion each year.

How Can You Spot Insurance Fraud in Florida?

Nobody wants to pay higher insurance rates than they have to. It’s one thing if you got in an accident because you ran a stop light. It’s another if you’re paying more just because you live in an area with more fraud. Consumer complaints don’t make these fees go away. So how do you recognize insurance fraud when you’re on the road?

These staged accidents come in two distinct forms. One version uses two cars, where all the occupants are in on the operation. The other version sees criminals targeting innocent drivers as their victims taking advantage of their collision coverage and sometimes injuring them while causing financial losses. They file claims with insurance carriers, and victims don’t know the difference.

The following graphic shows the top five cities in Florida for auto insurance fraud, and the number of confirmed staged accidents that took place in each of them in 2009:

Top Five Cities for Car Insurance Fraud in Florida


Top Five Cities for Car Insurance Fraud in Florida
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Car Insurance Blog

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How Can You Lower Your Auto Insurance Rates?

Whether you live in Florida, Michigan, California, or somewhere in between, you can probably lower your auto insurance rates. Some people raise their deductible or lower their coverage. When you run insurance quotes online, you can compare companies to make sure you’re getting the best rates on the coverage you have now. Then you can make adjustments to get the cheapest car insurance and coverage you need. Just enter your zip code and get started today to get the lowest rates that make sense for you.