Auto insurance costs to be reduced by Florida lawmakers


17Lawmakers in the state are trying to reduce the costs and cut back on costly courtroom battles over disputes arising due to auto insurance. A lot of officials feel that something has to be done to ensure that the costs can be reduced. This is because the auto premiums in Florida are on the rise and increase lawsuits are one of the reasons according to regulators, why the premiums are going up. One of the proposals that are being considered is to reduce the attorneys’ fees when they win PIP suits.  This fee could become quite hefty in excess of 100,000 dollars in some cases.

In fact, according to some officials and past negotiators, PIP is a boutique industry worth billions of dollars. The idea initially was to reduce the number of suits but now it has gone up further as a result. On the other hand, lawyers who usually sue insurance companies believe that restricting the fees would only further hamper the ability of the victims to go to court demanding the benefits that should be getting. In fact, drivers in the state are mandated to have PIP insurance which will pay for up to 10,000 dollars for the medical expenses due to injuries from various car accidents.

Lawsuits are not just paid to get the liability insurance. They are also filed when the companies deny the claims or pay as much as they should. In fact some lawsuits are fought over a few dollars. The delay in payments according to some insurers is mainly because the medical providers as well as the victims of accidents submit fraudulent claims.

The PIP insurance rates have been hiked by the top 10 insurers by 83% in the last 2 years. Insurers will meanwhile be surveyed by the Office of Insurance Regulation regarding the claim costs and litigation costs ahead of the legislative session. Some people feel that PIP has gone beyond control and hence it is now being discussed to curtail its abuse in the future. It has to happen too because the car insurance has started to cost more for all the consumers. The driving costs are up and hence it is getting difficult for people in Florida who find it very hard to keep up with the excessive premiums. Some of the attorneys keep their benefits to a minimum when they win the case.