Lawmakers benefits of new auto insurance laws to be seen soon
Auto insurance in Florida has been in flux for some time. State lawmakers have been laboring to make changes to Florida’s auto insurance regulations in the hopes of curbing the prevalence of fraud. Legislators have made significant changes to the state’s personal injury protection (PIP) regulations, which have been hailed both as a remedy for fraud and a financial problem for consumers and businesses. Whatever the case may be, auto insurers are tasked with figuring out ways to lower rates for coverage due to new regulations.
Insurers submit plans for rate reduction
Auto insurance companies in Florida have been tasked with providing state regulators with information concerning their plans on reducing the rates on PIP coverage. Insurers are meant to lower the rates of PIP coverage in order to make the coverage more accessible to consumers. Drivers are required to carry no less than $10,000 in coverage for injuries, but there is also a $2,500 option for non-emergency treatment clause that is meant to cut down on abuse of the state’s no-fault auto insurance regulations.
Time may be running out for PIP reform
Insurance regulators believe that the majority of the state’s auto insurance companies will have plans to reduce PIP rates in place and ready for presentation. Those that do not have plans to reduce rates must provide adequate justification for their stance on the issue. Some insurers have been disinclined to comply with the new PIP regulations because they do not believe it will solve any of the problems that the state is currently facing. This belief is shared by some lawmakers who also believe this is the last chance the state will have to solve its problems with PIP coverage.
Fraud continues to cause problems for insurers and consumers
Fraud has been a problem for Florida’s auto insurance companies for years now. Lawmakers have had trouble reining in the issue, which has caused more financial stress for insurers and consumers alike. Many consumers have expressed concern over the prevalence of fraud and what it is doing to their auto insurance premiums. The longer fraud goes unmitigated, the higher these premiums grow.