The issue of insurance fraud in Florida is one that has been catching headlines quite often in recent years. While it may be tempting to cheat the system to perhaps get the funding you need, there are a variety of reasons why this is not only a criminal activity, but one that may be causing economic distress for others in many communities as well. Originally passed following a state wide grand jury report identifying dozens of clinics that were acting without a license as the culprits in wide spread insurance fraud schemes, the new action does not seem to be making much of a dent in the rate that such crimes occur.

In 2001, there was a law passed which made tougher penalties for cases of insurance fraud, however, this measure does not seem to have slowed down the instances in which it occurs- and it has ultimately cost Florida motorists roughly 1 billion a year since.

While it did lead to an increase in investigations and arrest, premiums have not gone down by much and the incidence of vehicle abandonment and arson has actually risen by quite a great deal more each year. Firmer laws should have lead to a decrease in staged accidents and the solicitation of accident victims, but this is showing to be the opposite of what is actually occurring in an alarmingly increased rate.

2005 saw yet another attempt at cracking down that seems to have failed the public and the controversial no fault system paying out up to $10,000 to cover personal injuries regardless of who is at fault seems easily exploitable. For those who do not comply with the ruling, personal injury lawsuits are still often courted by dishonest attorneys looking to win a quick case. On either side, be it fraudulent agencies offering the promise of debt relief or quick funds when there may not seem to be other options, or possibly individuals who are desperate for money- these things are leading to even deeper economic issues in a sort of cycle that will not stop until something more is done.

The system seems to need further scrutiny, as thus far, none of the measures implemented to protect the public from fraudulent agencies wishing to enable some to unload gas guzzling vehicles, or simply vehicles they can no longer afford for a quick and easy insurance write off, as well as the higher insurance premiums this causes to the rest of an honest public just looking for protection in case of an accident.

Many are asking when this is going to get dealt with in a more heavy handed way, when more preventative measures will be taken to not only decrease the rates of fraud, but prevent newer, more intelligent schemes from coming up. Those who have been cheated by such schemes or perhaps convinced that it was a viable solution to money woes find themselves also on the wrong end of the law, when in fact, more often than not they are victims of a fast talking confidence artist just out to take their money, as well.