Recent raids by police in the Tampa Bay, Florida area are shedding light on a serious problem that’s plaguing the car insurance industry and having a negative impact on the ability of law abiding citizens to buy auto insurance at low prices.
According to statistics, incidents of staged car accidents in Tampa Bay are much higher than they are anywhere else. One of the reasons for this is said to be Florida’s existing PIP law, which stands for Personal Injury Protection, and guarantees as much as $10,000 in medical payments for every person injured in a car accident, no matter who’s to blame for it.
The crime ring that was recently targeted by Florida police involved several medical clinics that were allegedly organizing staged accidents and falsifying medical diagnoses in order to receive payments from car insurance companies.
The efforts of Florida police (an investigation that was nicknamed “Operation No Pain, No Gain”) is expected to send a clear message to the practitioners of fraudulent insurance claims that such actions won’t be tolerated on any level. It also serves as a reassuring move by law enforcement to secure fair and affordable prices for people who buy car insurance. Even more important, it stresses the responsibility that law abiding drivers everywhere have to regularly shop around for accurate insurance quotes, since crackdowns like these can impact insurance rates positively.
Who is Covered by my Car Insurance if I am Not Driving?
If your friend borrows your car while hers is in the shop, or if your son lets a friend drive the family car, the coverage for the vehicle will be provided by your insurance, in most cases. While e...
Read More →
Is it a Myth or Fact that Red Cars Cost More to Insure?
When you are considering the purchase of a new vehicle, you want to take time to consider the impact on your insurance policy. Among the myths that may worry you is the idea that red cars are more ...
Read More →
What Happens if You Do Not Have Auto Insurance in Your State?
In an effort to crack down on the high number of uninsured or under-insured drivers, every state in the country has enacted some sort of law that requires people who own and drive cars to be able t...
Read More →