PIP Insurance May be to Blame for the Dramatic Increase in the Cost of Auto Insurance in Florida

Personal Injury Protection (PIP) insurance generally is designed to cover the cost of medical expenses due to an accident involving someone who is either uninsured or under-insured. However, PIP insurance may have evolved into a system for people to scam the companies providing auto insurance in Florida out of thousands of dollars. According to research, the number of PIP insurance claims in Florida have risen as much as 70% over the course of two years. Read auto insurance quotes in Florida for more information on auto insurance in Florida.

PIP insurance was started in 1971, possibly because personal injury liability auto insurance in Florida was not required under state law. PIP insurance may have been intended to help drivers who needed personal injury coverage. However, the dramatic increase in false claims may have resulted in a drastic increase in the cost of auto insurance in Florida during the same two year period as the dramatic increase in PIP insurance claims. According to the available research, the cost of auto insurance in Florida may have increased as much as $100 per year for a family of four.

As a result of the fraudulent activity, the state of Florida may consider an elimination of PIP insurance. Auto insurance companies may be in favor of this, but health insurance companies appear to possibly be opposed to this plan. For more information on car insurance options, go to: full coverage car insurance.

Go to this page and fill out the form provided to get a free, no-obligation quote on car insurance.