Gov. Bush signs Florida auto insurance fraud legislation

Florida legislation that promises to reins in auto insurance fraud was signed June 26 by Gov. Jeb Bush.

Provisions of House Bill 561 and Senate Bill 1596 and the governor’s approval were applauded by Tom Gallagher, Florida CFO, who oversees law enforcement agencies involved in investigating auto fraud.

The bills, sponsored by Rep. David Rivera and Sen. J.D. Alexander, tighten the grip on fraud artists who stage or fabricate auto crashes and make fraudulent auto insurance claims.

The new law enhances penalties for the newest twists on auto insurance fraud, “phantom” and “paper” auto accidents that never actually occur. The law makes either action a second-degree felony punishable by a two-year minimum mandatory prison sentence.

Florida law requires drivers to carry $10,000 in personal injury protection coverage and $10,000 in property-damage liability coverage. Recent auto fraud cases involve unscrupulous lawyers, doctors and clinic owners who illegally bill for services covered by PIP, which provides coverage for medical bills from an auto accident, regardless of who is at fault.

Auto insurance fraud is estimated to cost the average Florida family as much as $250 a year, but legislation passed in 2001 and 2003, in tandem with increased arrests and prosecutions, have led to lowered premiums in recent years.

Topics Legislation Auto Florida Fraud