New auto insurance laws in Florida subject to optimistic outlook
Regulators warn that a preliminary report concerning insurance savings could be inaccurate
Florida’s new auto insurance laws have taken root, especially in the personal injury protection (PIP) sector, and some state officials suggest that they are leading to lower insurance premiums. The state’s insurance regulators are warning that the preliminary reports coming from some insurance companies and state officials could be nothing more than wishful thinking. The implications that the new auto insurance laws may already be leading to savings comes from a report that was recently released by the state government concerning the matter.
Report suggests consumers already saving money on auto insurance
The preliminary report suggests that the state’s new auto insurance laws have cut the cost of no-fault auto insurance by as much as 20%. Insurance regulators claim that this is a misleading estimate that is not based on concrete evidence. Regulators note that this is the first iteration of a report from the Office of Insurance Regulation and was produced due to a media request for access to public documentation on the auto insurance laws. The final version of the report will be released in mid-September and regulators expect that the changes made to the information in the report will be somewhat dramatic.
Auto insurance laws not expected to produce savings until 2013
According to the state’s new auto insurance laws, insurers are required to provide a minimum of 10% savings on premiums unless they can justify their reasons for not doing so. Insurers are also requires by the law to cut auto insurance rates by as much as 25% by January 2014, which can also be avoided through adequate justification. Regulators note that the majority of the provisions of the state’s new insurance laws will be enforced beginning next year. In regards to savings on auto insurance policies, regulators do not expect these to manifest until January 2013 at the earliest.
Laws designed to combat fraud
Florida’s new auto insurance laws are primarily designed to cut down on the prevalence of fraud. Auto insurance fraud has been a serious issue for the state for some years due to its old no-fault insurance laws. Cases of fraud have causes many auto insurance companies to raise rates excessively and have put a great deal of financial pressure on the state’s economy. State officials believe that the new auto insurance laws will address the issue effectively.