Florida legislature contemplating new rules for auto insurance


The ever increasing rates of auto insurance in the state of Florida have instigated the legislature in the state to come up with new moves to curtail this price rise. The legislature is considering making changes to the personal injury protection insurance which is one of the main reasons for the increase in insurance premiums. A large number of customers with the PIP insurance plans are filing fraudulent claims in large numbers which in turn is leading to increased cost for auto insurance providers. In a bid to curtail their losses, auto insurance companies are increasing the premiums on all the insurance policies they are offering car owners in the state.

Though the suggestions for Personal Injury Protection reforms were thwarted last year by the Florida Legislature, Governor Rick Scott along with his team has been constantly working towards bringing about the much needed change in the auto insurance sector. According to experts in the field, the efforts have a much higher chances of being successful in the current year.

As per the industry experts there are three key reasons for drivers in Florida to pay very high prices for the no-fault PIP insurance in the state. The increase in the number of fraudulent claims, the increasing cost of medical treatment and increase in the number of lawsuits being filed by consumers are the main reasons for the rising costs. According to estimates by the Insurance Information Insurance, drivers in the state have to pay over $50 extra each year to combat the increasing fraudulent claims. This alone has pushed the average auto insurance cost in the state to $1,457 for a year. Though the Senate and House are contemplating moves to eradicate this problem, they are adopting two different approaches.

The bill being proposed by the House involves curtailing reimbursements of claims to clinics that have been a part of the fraud all these years. The bill proposed by the House would have a list of hospitals that would be listed. Customers who intend to file claims have to avail the services of these hospitals only within the first 3 days after the accident.

On the other hand, the bill being proposed by the Senate does not limit the list of hospitals and clinics that customers can use to avail treatment, but stipulates that the clinic or hospital have the relevant licenses and have a doctor on hand round the clock.