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Anti-Fraud Legislation For Online Auto Insurance

Getting the best price on car insurance is for some the only way that they can still afford it. Shopping online auto insurance is a way to guarantee that you are getting the very best insurance, for the best price possible. State officials, seeing the amount of money that fraudulent claims are costing their states, are beginning to enact legislation that will not only bring down the cost to the state but hopes that the savings will be passed onto the auto insurance consumer. New laws are beginning to cross over into auto insurance laws.

One such law that is becoming a great example for other states to follow suit is the no-fault auto insurance law that was passed in Florida. It is estimated that the new law could save 14 to 24.6% on insured personal injury protection insurance coverage. The target of the new law is to cut down on the fraudulent claims by putting restrictions on when, and how you can file them. The new law has many parts to it but there are some reforms that stand out. It gives the victims of accidents just 14 days to seek medical treatment pertaining to that accident. It also caps the amount that is provided for emergency treatment at $10,000 and $2,500 for more minor injuries.

Insurance fraud is defined as punishable by law when any act is committed with the intent to fraudulently obtain some benefit or advantage to which they are not otherwise entitled or someone knowingly denies some benefit that is due and to which someone is entitled. There are many forms of fraud in auto insurance claims. Soft auto-insurance fraudulent claims are those in which false claims are filed either in the form of duplicate filing, adding on injuries to the claim that were pre-existing, misreporting wage losses greater than those lost, or reporting higher cost for repairs than it costs the claimant. Hard auto-insurance fraud activities are those that stage automobile collisions, claiming an accident when none occurred, pretending to be injured, or filing claims that you were injured when you were not.

There are many medical clinics that are suspected on filing fraudulent claims so to insure that accident victims won’t fall prey; the state has compiled a list of approved medical providers. Not included on that list are such disciplines as massage therapy or acupuncturists. The hope is that the changes in law will have a substantial benefit on the auto insurance premiums in the state of Florida.

There are some opponents to the new legislation saying that it is unconstitutional. On the whole, however, many residents of Florida have fallen victim to fraudulent practices, or have seen the effect on their auto insurance premium and are willing to adhere to the new laws that have been enacted. Many other states are considering similar legislation to protect the citizens of their states. The cost of fraudulent claims has a high correlation on the price you pay as a consumer. It is still important, however, to make sure that you are paying the best rate possible.

Take a moment now to input your zip code at the top of this page to receive several different rate quotes. Within minutes, you will be able to see how your insurance measures up to what other companies are offering. Don’t wait another day to save potentially hundreds on your auto insurance costs. Shopping online auto insurance is also a good way to minimize your cost.