MIAMI -- Investigators said staged accidents have become a billion-dollar business for criminals in the state of Florida.State insurance fraud investigators said criminals are costing Florida drivers lots of money by driving up insurance premiums by staging car accidents and filing phony claims.
So far 30 people suspected of involvement in an alleged fraud ring have been arrested. Investigators said they staged 13 accidents between 2002 and 2004 and billed insurance providers such as Allstate $900,000 for fake treatment at clinics in Miami and Hialeah."Everybody pays for this in the cost of increased premiums. The more fraud, the higher the premiums go," said Capt. Steve Smith of the Florida Department of Financial Services.Authorities said the cost to the average driver is $250 in increased premiums, NBC 6's Patricia Andreu reported.South Florida has long been a haven for this kind of fraud."At any given time we're probably aware of 20 to 25 rings operating. My people are working probably 100 accidents at any given time in Dade County," Smith said.Smith said all of those accidents are fraudulent.The investigation in which the recent arrests were made continues with more arrests expected. But, as a senior official put it, the roundup was just a drop in the bucket when it comes to this type of insurance fraud in South Florida.
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