Personal Injury Protection (PIP)
Florida auto insurance has been fluctuating for several years now, and in an attempt to regulate the insurance and prevent fraud, major changes have been made to the personal injury protection (PIP) insurance laws in Florida. This in turn has not only reduced fraudulent activity in Florida, but has also reduced rates for both personal and commercial drivers.
The new Florida PIP coverage consists of drivers maintaining no less than $10,000 PIP coverage for injuries, with an optional $2,500 non-emergency treatment clause. The treatment cause became effective in order to reduce the abuse of the no-fault laws in Florida.
According to Florida insurance regulators, all auto insurance companies must already have plans in place to reduce their PIP rates. If any insurance company hasn’t already reduced the rates or created a plan, then an adequate explanation must be provided to the insurance regulators. Unfortunately, some Florida auto insurance companies do not agree with the new price reduction, as they believe this will not solve the issues that Florida has been facing, such as fraud.
Fraud continues to be a growing problem in Florida, with a plethora of fraudulent accident claims each year. As a result, auto premiums have continued to increase in Florida, and the longer these fraudulent claims continue without solutions, Florida auto insurance premiums will continue to rise.
For more information on the new PIP laws and regulations, visit the official Florida Department of Insurance website. You’ll also be able to research various Florida insurance companies and get new quotes in the event you are looking for new auto insurance, or need to change to another company.