Drivers beware: a small tweak in Florida’s auto insurance legislation could have a big impact on Florida drivers, leading to possibility of increased fraud in the Sunshine State.
Since 1989, law enforcement and insurance investigators have used a “pre-insurance” inspection requirement as a tool against fraud to safeguard consumers.
According to executive director of the Consumer Federation of the Southeast Jennifer West, one in nine used automobiles has some sort of pre-existing condition.
But a removal legislation as part of two bills -- HB 659/SB 1036 (sponsored by Rep. David Santiago, R-Deltona, and Sen. Jeff Brandes, R-St. Petersburg) -- would allow insurers to opt out of the pre-insurance inspection requirement for certain used cars in Florida, much to West’s dismay and the chagrin of the Consumer Federation of the Southeast.
Insurers would be able to create their own pre-insurance program if it files a manual rule with the Office of Insurance Regulation.
The pre-insurance inspection identifies vehicles which don’t actually exist among other fraudulent claims.
“By requiring in-person inspections, the existing law deters scam artists from victimizing consumers with bogus transactions,” West said in a conference call Wednesday. “Anything that stops this kind of fraud is money in the pocket of consumers, and there is no good reason to erase such an important protection.”
The provision in question is only part of the legislation, which is 11 pages long. But Jennifer West says the elimination of the pre-insurance inspection requirement could have widespread effects on consumers.
“When there is fraud on one consumer, there’s increased cost on all consumers,” West told reporters. “Fraud affects everyone.”
