FL Struggling To Lower Car Insurance Rates

Florida is a no fault insurance state and has had issues with keeping its drivers properly insured. The PIP or personal injury protection system in the state has had some changes made to it to try and reduce car insurance rates for drivers.
The politicians who have supported the reforms have stated that premium rates will increase by up to 25 percent. Insurance companies believe that recent changes that have been made will reduce car insurance fraud. Now, insurance companies have a deadline of October 1st from the governor to reduce premium rates by at least ten percent.
Some of the insurance companies that do business in the state have expressed their displeasure with this requirement. Those insurers that do not comply with the governor’s mandate must be able to explain why they could not reduce their rates by ten percent.
Car insurance insiders have stated that reducing PIP costs might not even help to reduce premium rates for drivers that much. If costs can be reduced by 25% then drivers would only see a five percent reduction in their premium payments. One fifth of the premium payments that drivers have to pay currently go to their PIP coverage.
It is important for Florida drivers to do their part to reduce their premium rates. One way to do this is by making sure to keep premiums paid on time. The more uninsured people there are in the state, the higher the premium rates will be for all. Florida has a very high rate of uninsured drivers because of the fact that PIP claim benefits exceed the national average.
Another issue that continues to need to be addressed is car insurance fraud. A few reforms such as not paying for acupuncture treatments and requiring more restrictions on doctor’s notes for care have been put in place but few strides have been made because fraud still costs insurance companies millions of dollars each year.
It may be time for Florida to consider switching over from a no fault state to a traditional state in which the at fault driver’s insurance company is the one which provides the benefits only. This would help to save insurance companies money which might reduce premium rates in the state.
As it currently stands, reducing costs is what needs to be done in the state. Health care costs are high for PIP insurance claims. By helping to shift more of the costs by capping benefits and putting more money towards reducing car insurance fraud the reforms can be more productive. As it currently stands, too many criminals are getting away with car insurance fraud and each time that they do, they reduce the likelihood that car insurance companies can cut costs and reduce their premium rates.