Allstate sues 13 Florida firms, says they staged accidents

Published: 2009-03-26 10:25:25
Author: Beatrice Garcia, Miami Herald, October 17, 2008

Allstate Insurance has sued 13 Florida companies, including auto body shops, tow truck operators, chiropractic clinics and their owners and some policyholders, alleging the group staged at least 17 auto accidents and filed fraudulent claims.

The suit, filed last week in the U.S. District Court for the Southern District of Florida, anticipates at least $1.5 million in damages from the trial.

Allstate, one of the state's top five auto insurers, filed its lawsuit against the companies under the state racketeering and fraud laws. The fraudulent claims, the suit alleges, included claims for damage to cars and also personal injury.

Every auto policy sold in Florida includes up to $10,000 in coverage for medical expenses. Allstate contends these fraudulent medical claims sought to exploit that coverage.

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