Auto Insurance Break for Florida

After 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
3 comments
Posted by Wealthy Geek on February 23,2007 at 5:25 PM
I think it's interesting that an article about auto insurance has sparked a discussion about health care. The sad truth is the United States decided decades ago that health care should be treated simply as a business – no more, no less. So in one sense, the system sees no intrinsic difference between your car and your body – the argument being that you wouldn't show up at your mechanic with no way to pay for repairs, so why would you expect to with your doctor?

I heard an interesting phrase used on a US-based financial site earlier this week: "Health Care is not a right; it's a privilege." For countries such as Canada, Iceland, or Norway, this rings as anathema, where health care IS considered a right of all citizens. But in the US, it's a privilege. For whom? For those who can afford it. And it's no surprise that 42% of the population cannot.

While 'Consumer Advocate' makes an okay argument, there's really no point in beating up State Farm, or doctors that matter. The system tells them 'you're a business; act as one', and they do. The only solution is to change the mentality of the system so that it DOES see an intrinsic difference between a car and a human body. But doing that ultimately means raising taxes so that the rich can help cover the health care costs of the not-rich. But this of course runs counter to the rugged individualism and social Darwinism that sits at the heart of America's economic and political success. So what are you going to do?
Posted by editor@insuranceguide101.com on February 23,2007 at 12:12 PM
Don't know where you get the idea that State Farm doesn't write health insurance. According to the State Farm website, they do. Here's the link: http://www.statefarm.com/insurance/health/health.asp
Posted by Consumer advocate on February 23,2007 at 10:04 AM
Remember, lower rates means less coverage, what doctors are going to see accident patients now? 40 % of accident victims have no health insurance, the small amount of med pay coverage State Farm will offer will not be enough to cover the ER visit. Claimants credit will be ruined with huge hopital bills. Small and large companies are squeezed to provide health insurance and are passing on the increses to employees. State Farm does not write heatlh insurance, wonder why?
CarLifeHealthLong Term CareDisabilityDentalBusinessHomeOther