Fraud Frenzy

REVIEW SUMMARY
What. Auto insurance fraud.
Issue. Tampa's the worst, but one of its legislators voted against the fix.
Impact. $1 billion in higher auto insurance costs in 2011.

In Tampa, questionable claims involving staged auto accidents zoomed from 125 in 2008 to 739 last year, a 591% increase, boosting Florida to No. 1 in the nation in that insurance fraud category. The Sunshine State also claims top billing for medical provider fraud, which fraud experts say is tied to auto insurance fraud schemes.

It will cost Florida's no-fault auto policyholders $1 billion in premiums in 2011, according to Ron Poindexter, the southeast regional director of the National Insurance Crime Bureau. That's more than $100 a year per two-car household.