Recent changes to Florida’s Personal Injury Protection on automobile insurance policies supposedly will reduce individual premiums. One report indicated that premiums may drop anywhere from 14 to 26 percent. However, insurance companies have warned consumers that other costs could offset these savings and overall rates may remain the same. One of the “additional costs” listed was insurance fraud, which costs companies over $1 billion annually.
“We should collect all these excuses from insurance companies and hopefully no one will say my dog at it,” said Bill Newton, executive director of the Florida Consumer Action Network. Under a law passed last spring by Governor Rick Scott, insurance companies are required to reduce rates by at least 10 percent by October 1 or provide a reasonable explanation to regulators why it did not. Some insurance companies seem hesitant to publicly announce any rate reductions.
“This projected savings may actually mitigate premium increases, not reduce premiums,” read a statement from the Florida State Office of Insurance Regulation.
PIP costs typically represent about 20 percent of a particular consumer’s auto insurance bill, so a 25 percent reduction in PIP costs would account for a total of a 5 percent reduction on the total bill.
Wooten, Kimbrough & Normand, P.A.—Orlando car accident attorneys.