The state of Florida mandates its drivers to carry a car insurance policy that includes the coverage for both damage to third party properties and personal damages. However, a recent study conducted by a major insurance consultancy firm in Florida reveals that motorists think about buying higher limits on top of the minimum requirements due to the fact that the added coverage may be relatively low compared to the cost of property damage and medical expenses caused by being involved in a car accident.
According to reports, state authorities in Florida are considering to upgrade their insurance laws and increase the state’s mandated policy requirements. Insiders say that meetings are now ongoing but nothing if final as of the moment as studies and surveys are still made to assess consumer reactions and the possible effects on auto insurance costs.
At present, the state law requires drivers to retain a limit of $10,000 for Personal Injury Protection (PIP) and $10,000 for Property Damage Liability (PDL). Because of the nature of the very minimal requirements, insurance experts believe that the consequences of a road accident can automatically exhaust the two limits. When this happens, the party responsible for the accident will be left to carry the burden – he will be liable for the remaining damages resulting from the incident.
Reports from the Insurance Information Institute show that the minimum requirements in Florida do not provide enough protection for the car of the insured driver and in the event of a crash, the policy holder will have to cover for damages and repairs on his own if he is proven to be at fault for causing the incident. According to the Insurance Information Institute, Florida drivers should consider adding collision and comprehensive coverage to their policy if they would like to fully protect their vehicle and should especially consider the two add-ons if the car they are driving is being financed.
Insurance experts in Florida say that the consumers’ preference to purchases more policy coverage is not a good reason for the state to amend its legislation and upgrade the state required policy requirements. Industry experts are afraid that upgrading the requirements can cause a backlash to insurance companies as careful drivers who rarely get involved in collisions can refuse to pay more just because the state changed it law.
At present, very little information has been released as whether state officials will push through in making changes in is legislation regarding car insurance. Experts say authorities want the issue to be top secret and release statements only when final decisions has been made.