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January 20, 2016A minor change in Florida’s new auto insurance legislation could potentially have a big impact on the state’s drivers, including the possibility of increased fraud.
Since 1989, Florida law enforcement and insurance companies have used a “pre-insurance” inspection requirement as a tool against fraud to safeguard consumers. But the new legislation being proposed, part of HB 659/SB 1036, would allow insurers to opt out of the pre-insurance requirement for certain used vehicles in Florida.
With this, insurers would be able to create their own pre-insurance program. Pre-insurance inspection identifies vehicles, which don’t actually exist among other fraudulent claims. In-person inspections of vehicles deters scam artists from taking advantage of consumers utilizing bogus transactions.
Though the provision in question is only a small part of the legislation, it could still have wide-ranging implications on Florida drivers.
For more information on this topic or any other, feel free to contact the Schulman Law Group at (954) 349-3300 or at info@www.schulaw.com.