Florida Auto Insurance PIP

Conversations regarding Florida auto insurance have really heated up recently in Tallahassee.  Participants of the Florida Cabinet have blamed auto-insurance fraudsters and certain health-care providers this week for causing the rise in cost of personal-injury protection coverage.  Some have estimated over $900 million are built into the premiums due to this issue.  This hidden “tax” has many Floridians up in arms over the additional cost of PIP insurance.

FLORIDA AUTO INSURANCE NEWS

Jeff Atwater, Florida’s Chief Financial Officer and Governor Rick Scott are going to scrutinize Florida’s PIP law this upcoming year. They would like to reform this PIP law in legislative session in 2012.  Florida’s insurance consumer advocate, Robin Westcott, has led the team to study the issue at hand. 

The team recently provided their results to the Florida Cabinet this week showing that the Florida auto insurance accident rate has decreased from 1.76 per 100 licensed drives in 2005 to 1.52 this past year, but car insurance premiums have exploded.  Floridians are starting to ask for answers.    PIP insurance coverage must be reviewed swiftly allowing for dramatic changes to this coverage. 

Additionally, direct losses have risen from just over $1.6 billion in 2005 to $2.3 billion this past year.  Many other variable losses are calculated into these equations, like legal defense costs, taxes and policyholder dividends.   Atwater said, “What we’re getting billed for is fraud, fraud, fraud, fraud”.

It is unfortunate that lawyers and medical providers have been changing the shape of the future legislative reform.   Should our lawmakers in Florida eliminate the $10,000 in required Personal Injury Protection coverage?  What would be a better alternative to the current system?  Should they rather place new limits on other types of services? 

EDGE AUTO INSURANCE INFORMATION

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