Florida leads nation in fake car accidents

LAKE MARY, Fla. (WOFL FOX 35) - Insurance fraud is expected to cost drivers in Florida more than $80 more this year in car insurance premiums. The state tops the nation in staged car crashes.

The number of fake accidents began skyrocketing in the last couple years, jumping 77 percent in the first half of 2009 to the first half of 2010, according to the National Insurance Crime Bureau (NICB).

The NICB recently set up a Major Medical Fraud Task Force in Central Florida. Crackdowns in Miami sent crooks to set up shop in Tampa, and into Orlando. Now Orlando is right there, coming up on Tampa, said NICB Special Agent Dennis Russo.

Russo says what ends up as a false insurance claim, starts as a staged accident where criminals target an innocent victim, or use two cars full of crooks who are all in on the fraud.

"As far as avoiding one, you never know when one is going to happen, so its really hard to do," said Russo.

Florida's no-fault auto accident insurance law may make it easier for criminals to cash in here. Insurance companies pay out up to $10,000 per victim, no matter who caused the accident. Two cars staging a crash full of four people each could end up paying out a total of $80,000 in claims.