Reduction of PIP Rates and Fraud

The Insurance Journal published an article last month and I haven’t had a chance to write about it until now. It’s written by members of the insurance industry so the numbers are going to be favorable to insurers. As doctors, medical providers, and lawyers some of you will find the hilarity on this sad state of affairs.

The link to the article is HERE.

Here are some fun facts from the article which claims the EMC reforms effective January 1, 2013 are working:

(1) they ONLY had 18 months of data after the January 1, 2013 changes but the numbers are distorted because of the legal injunction that took place shortly after the changes. In other words, after 18 months the rates weren’t reduced by any real amount so let’s blame the doctors who filed that injunction in Tallahassee.

(2) From 2011 to December 31, 2012 State Farm PIP rates went up 62.5 percent. Since January 1, 2013 State Farm PIP rates went down 1.6 percent. In other words the rates are still 60.9 percent higher than they were in 2011!

(3) PIP makes up a small part of the coverage on the total auto insurance premium. The average payment per driver per year for PIP coverage has dropped from $185 pre-reform to $125. In other words, drivers are saving $60 per year and losing $7,500 in benefits.

But wait- I’ve saved the best for last.

(4) Between 2010 and 2013, the NCIB stated the number of staged accidents declined from 859 to 328. That’s right. The lobbyists and legislators changed the PIP law to reduce PIP fraud. They reduced PIP benefits for all Floridians from $10,000 to $2,500 without an EMC and they did so because there were 859 staged accident statewide?


Schedule a Free Consultation

    • Please enter your first name.
    • Please enter your last name.
    • This isn't a valid phone number.
      Please enter your phone number.
    • This isn't a valid email address.
      Please enter your email address.
    • Please make a selection.
    • Please enter a message.
Put Us On Your Side