Why 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.