Auto Insurance Break for FloridaAfter a couple of harrowing years, with property insurance rates skyrocketing, Florida residents may just get a break. It looks like car insurance rates will fall when the no-fault insurance legislation expires later this year, according to an article in the Gainsville Sun. State Farm, which is in trouble in Mississippi because of litigation, has already applied to reduce auto insurance premiums in Florida an average of 16 percent.
State Farm is Florida's largest auto insurer. The company is predicting as much as $360 in savings to a family with two vehicles.
According to a State Farm spokesperson, the Florida no-fault system has had a host of problems, including legal loopholes and fraud issues. In fact, insurers say no-fault actually gave medical and legal providers a reason to stage accidents because of the provision that drivers must carry Personal Injury Provision (known as PIP).
The Florida Hospital Association does not agree and says that PIP should remain or be replaced with some other mandatory coverage.
Florida's second largest insurer, Allstate, said it will also lower rates. However, the third biggest player in the market, Geico, supports the maintenance of the current no-fault system. A statement from Geico indicated the company sees no particular benefit to ending the no-fault insurance environment.
If no-fault does sunset, auto insurance in Florida will change. State Farm says that its clients will have the option to purchase medical coverage as part of their policies. This coverage will cost less -- and may not be necessary at all for those who already have health insurance through State Farm.
Florida residents currently have the 6th highest auto insurance rates in the US. New Jersey has the unhappy favour of being Number 1.
Monique L. Attinger