Allstate, Progressive, State Farm to Call Out Law Firms Driving Up Insurance Costs
Sept. 25, 2018—A group of insurers including State Farm, Progressive and Allstate, is looking to confront law firms that are thought to be contributing to the rise of insurance costs in Florida, reported Insurance Business.
Insurance industry experts warn that the surge is part of a statewide trend driven by lawyers who are looking to make high-volume business out of filing claims involving motorists in personal injury protection (PIP)—a program under Florida’s no-fault insurance statute that provides coverage of up to $10,000, according to the report.
Data from the Florida Justice Reform Institute revealed that PIP lawsuits spiked nearly 50 percent to a record high of 60,000 in 2017.
Lawyers can earn thousands of dollars in fees in cases over disputes worth just hundreds of dollars, according to Insurance Business. In a number of cases, the attorneys were working not on the behalf of the clients but for medical providers instead.