Insurance Fraud Problems In Orlando

Many people in Orlando may have noticed a spike in their car insurance, even though they haven't filed a claim or received a ticket.

An estimated 25 to 30 percent of Orange County drivers drive without insurance because of the cost, officials said.

Personal injury protection insurance is required for all drivers in the state of Florida, but if you haven't renewed your policy lately, your insurance may soon cost twice as much, according to officials.

"The people who are honest have to pay for the dishonest people," said an official.

Officials said crooks stage car accidents, fake injuries and then go to medical clinics that bill insurance companies for thousands of dollars. It's a $1.2 billion industry and it's largely run by organized crime. Officials said Orlando has some of the worst offenders in the country.

"There's times when an individual has gone to a clinic maybe two times and subsequently the clinic bills the insurance company for 30 to 40 visits," said an official.

WFTV learned that in 2008, a 40-year-old driver with no accidents or violations would average about $388 a year for insurance. On Wednesday, that same coverage would cost $615.

"That money has to come from somewhere and unfortunately it comes from insurance holders," said an official.

Officials said it has continued to get bad and some insurance companies are looking at people's zip codes. If there are high cases of fraud in that area, everyone's insurance may go up.

"You have higher premiums for health insurance, for auto insurance, and even higher premiums for property insurance," said an official.

The cost of insurance for a household with two vehicles in North Carolina is about $1,200 a year and officials said for the same coverage in Florida, it would cost $3,700.