According to experts, Florida’s auto insurance industry is currently facing the possibility of changes or the outright elimination to the no-fault system, which may provide drivers who are well-insured with an appealing decrease in premiums, but may also increase the price of basic policies. In Florida, drivers must have at least $10,000 in coverage for personal injury. However, Governor Rick Scott has stated that he would prefer to make this an optional protection. Personal injury protection (PIP) system critics are saying that scam artists are provided with incentive to stage…
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NJ regulators to revamp rules for PIP car insurance
Insurance regulators in New Jersey are preparing to give the rules for auto insurance as the struggle continues with expenses relating to the personal injury protection (PIP) system within that state. Governor Chris Christie released a proposal on August 1, 2011, which suggested changes that are intended to decrease internal system use and claim settlement arbitration legal fees, and lower the overall costs for alternative providers. There will be approximately three thousand new treatment codes to be included into the system. For every dollar collected in premiums relating to PIP,…
Read MoreAre no-fault insurance laws creating fertile ground for fraudlent claims activity?
Florida legislators are facing pressure to make changes to the state’s no-fault auto insurance laws. Several insurers want to see changes that would help reduce the amount of fraudulent claims they are receiving. State law requires that drivers have personal injury protection coverage that would help them pay medical expenses whether or not they were at fault. The law is designed to avoid lawsuits but insurers are saying that it is creating incentive for drivers to stage accidents. The Property Casualty Insurers Association of America, along with the Florida Chamber…
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