Behind states like California and New York, Florida is seeing an increase in auto insurance fraud from staged accidents.
“Unscrupulous actors are increasingly capitalizing on busy roadways to stage collisions and cash in on insurance payouts, particularly in high-traffic states,” said Mark Friedlander at the Insurance Information Institute.
Friedlander says these staged accidents cost drivers anywhere from $100 to $300 more in annual auto insurance premiums.
Insurify, an insurance shopping website, published a study that found that the average U.S. rate for full auto insurance jumped by 15% from 2023 to a cost of $2,329 for the consumer. From 2021 numbers to today, that amount has increased by 48%.
In 2024, insurance analysts point out the fraudulent schemes are getting worse, and the bad actors are looking to cash in on insurance claims.
We’ve seen these types of auto fraud scams for many years. This is nothing new. But we’re seeing an uptick in many areas,” Friedlander said.
The Insurance Information Institute reports that states like Florida are trying to crack down on fraudsters, but many are avoiding being caught and prosecuted.
On several occasions, Friedlander says the auto fraud being conducted isn’t just by one lone criminal, but it includes other entities as well.
‘These criminals are also working in collaboration with unscrupulous medical professionals like injury clinics, as well as unscrupulous attorneys that work with them to sue the drivers that are the victims,” said Friedlander.
The fraud with the staged accidents are costing insurers roughly $20 billion per year, all drivers are forced to “cover the losses incurred by insurance companies from these fraud schemes,” Friedlander said.
