RSSWhy Are Insurance Rate So High
The escalating cost of auto insurance premiums can be attributed to frivolous law suits, fraudulent claims and fraudulent medical bills.
Fourteen people linked to seven medical rehabilitation and diagnostic facilities have been charged with brokering patients for the purpose of defrauding auto insurance companies
Patients who were involved in auto accidents – some of them staged – were sold for up to $1,000 to the clinics for the purpose of billing auto insurance companies for medical evaluation and care,
Such practices only accomplish one thing; the increase of your insurance premiums. As reported, “auto insurance fraud is estimated to cost the average Florida family as much as $240 a year in higher premiums and costs.” To listen to the practice of brokering patients sounds like a day in the life of a Wall Street trader.
The patients were brokered to medical clinics that would bill auto insurance companies under the policy holder’s personal injury protection, or PIP, coverage as much as $10,000 for treatment, the Department of Financial Services said.
The elimination of medical fraud and frivolous attorney lawsuits could go a long way in the decrease of the auto insurance premiums. This is a part of the law that needs to be enforced vigorously.
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In Minnesota we have “no-fault ” auto insurance. It has caused our insurance rates to be 20-30% higher than insurance in Wisconsin, Iowa or the Dakotas. Some High School students went to our state legislaters and asked to get rid of the “no-fault” insurance. It was setup to prevent frivolous lawsuits but people are still suing. The legistlaters started an open discussion only to be attacked by the Lawyer and Hospital lobbyists. So we have an environment where you the law requires you to have auto insurance but if you don’t you get your medical bills paid for by the drivers that do have insurance. The incentive for many is to not bother with expensive insurance. See star tribune (Star % Sickle)http://www.startribune.com/stories/587/5269614.html