Staged crashes lead to insurance fraud - Fox29 WFLX TV, West Palm Beach, FL-news & weather

Staged crashes lead to insurance fraud

TALLAHASSEE, Fl. (WFLX) - -

One tactic is to wave a driver through a stop, then hit the unsuspecting motorist.  Another involves a staged rear end collision.  After the wreck people jump into both cars and claim injuries.  Personal Injury Protection or PIP insurance pays for 10-thousand dollars in medical costs for each victim regardless of who is at fault.  The industry claims it's losing a billion dollars a year to PIP fraud.  Governor Rick Scott says fixing the problem is like cutting taxes.

 "If the CFO or I or anybody could reduce taxes by a billion dollars you would say boy that would be great wouldn't it?," Scott said.

There are two bills to cut down on PIP fraud.  The House bill would make it harder to make a PIP claim, the senate bill steps up law enforcement and regulation on clinics that are abusing the system.

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