In an attempt to take advantage of a new Florida law, four of the five largest insurance companies are cutting no-fault insurance rates to lower their costs in the Sunshine State.
Following the passage of a law which targets fraud in Florida’s personal injury protection (PIP) system, Geico, Progressive and USAA have reduced their PIP rates by 10 percent. Allstate has decided to ask for different rate cuts for its three separate insurance divisions; no PIP rate change for Allstate Fire & Casualty, a 10 percent reduction for Allstate Insurance Co. and a 5.8 % cut for Allstate Property & Casualty.
State Farm, the largest auto insurer in Florida, was one of the few companies that decided against lowering its PIP rates. In sharp contrast to its competitors, the company has asked to be allowed to raise its PIP rate by 7.9 percent. State Farm had originally sought to raise personal insurance protection rates by 22 percent, but reduced its request with the state’s Office of Insurance Regulation. The insurer decided to ask for a smaller increase because the new state law, HB 119, caps non-emergency medical care at $2,500, disallows payments for massage and acupuncture treatments and attempts to curb insurance fraud.
Even though State Farm’s PIP rate is going up, its overall auto insurance rate is set to be lowered by 2.9 percent.
Auto insurance clients should check with their agents to see how the new state law affects their rates. Some of the smaller insurers which operate in the state of Florida may have raised their PIP rates because they are not able to be as flexible as the larger companies. Additionally, be certain to visit Florida’s official Department of Insurance online website for additional questions or comments concerning the new rates.