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Two Types of PIP Fraud
PIP stands for Personal Injury Protection and it’s a cornerstone of traffic law in Florida. When someone
is injured in a car accident, PIP law is what makes sure they get the help they need. But it’s also very
alluring to fraudsters: In Florida insurance companies are required to pay out up to $10,000 for medical
treatments to everyone injured in a car accident. And for the criminally inclined, there are two ways to
collect on that.
Type 1: False Treatments
Plenty of clinics look at the $10,000 insurance payment as low-hanging fruit. While legitimate medical
centers focus on treating patients with real injuries, some shadier clinics are only out to make money.
They can do this by getting patients to make fake or exaggerated claims, thus ensuring they get a larger
insurance payout made directly to the clinic.
These clinics will typically focus on patients who are being examined after a car accident, and entice
them with a promise of easy money. If the patient agrees, the patient lies about their injuries, the clinic
backs them up, and their insurance is billed for “treatments” they never received. The patient is given a
cut of the cash.
Type 2: Staged Accidents
Staged car accidents are another way people can try to swipe the $10,000. In this case, no clinic is
necessarily needed: A driver simply waits at an intersection and bumps, rear ends, or turns into another
(unsuspecting) car. At first glance this may seem like a complete accident, but the driver who caused it
will usually make sure it is very low impact, and nonetheless feign tremendous injuries afterward.
Then they can collect the $10,000 from someone else’s insurance company (they never have insurance
of their own).
How to Protect Yourself
Insurance fraud drives up costs for everyone. If you are involved in a car accident, pay close attention
to the other driver’s behavior. Did the crash seem like a true accident or did it seem odd that they hit
you? Was it a very low-speed crash, followed by exaggerated claims of injury? Do they really seem
injured? Many law enforcement officers are on the lookout for PIP fraud accidents, so if you suspect
anything be sure to tell the police at the scene.
Falsified treatments at clinics don’t directly affect you, but they do drive up insurance costs for
everyone. If you’re made an offer to participate in such a scam, don’t just say no: Call the police.
Sinclair Law specializes in personal injury law. If you’re injured in a car accident it’s vital that you
speak to a personal injury lawyer to make sure you get everything you deserve. Don’t choose a less
experienced attorney, call Sinclair Law today.

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Two Types of PIP Fraud

  • 1. Two Types of PIP Fraud PIP stands for Personal Injury Protection and it’s a cornerstone of traffic law in Florida. When someone is injured in a car accident, PIP law is what makes sure they get the help they need. But it’s also very alluring to fraudsters: In Florida insurance companies are required to pay out up to $10,000 for medical treatments to everyone injured in a car accident. And for the criminally inclined, there are two ways to collect on that. Type 1: False Treatments Plenty of clinics look at the $10,000 insurance payment as low-hanging fruit. While legitimate medical centers focus on treating patients with real injuries, some shadier clinics are only out to make money. They can do this by getting patients to make fake or exaggerated claims, thus ensuring they get a larger insurance payout made directly to the clinic. These clinics will typically focus on patients who are being examined after a car accident, and entice them with a promise of easy money. If the patient agrees, the patient lies about their injuries, the clinic backs them up, and their insurance is billed for “treatments” they never received. The patient is given a cut of the cash. Type 2: Staged Accidents Staged car accidents are another way people can try to swipe the $10,000. In this case, no clinic is necessarily needed: A driver simply waits at an intersection and bumps, rear ends, or turns into another (unsuspecting) car. At first glance this may seem like a complete accident, but the driver who caused it will usually make sure it is very low impact, and nonetheless feign tremendous injuries afterward. Then they can collect the $10,000 from someone else’s insurance company (they never have insurance of their own). How to Protect Yourself Insurance fraud drives up costs for everyone. If you are involved in a car accident, pay close attention to the other driver’s behavior. Did the crash seem like a true accident or did it seem odd that they hit you? Was it a very low-speed crash, followed by exaggerated claims of injury? Do they really seem injured? Many law enforcement officers are on the lookout for PIP fraud accidents, so if you suspect anything be sure to tell the police at the scene.
  • 2. Falsified treatments at clinics don’t directly affect you, but they do drive up insurance costs for everyone. If you’re made an offer to participate in such a scam, don’t just say no: Call the police. Sinclair Law specializes in personal injury law. If you’re injured in a car accident it’s vital that you speak to a personal injury lawyer to make sure you get everything you deserve. Don’t choose a less experienced attorney, call Sinclair Law today.