Early Insurance Industry Filings indicate No Insurance Savings for Floridians

As the first rate filings since the passage of PIP auto insurance reform pour into Tallahassee, and, as the Office of Insurance Regulation works to complete a study on the fiscal impact of the New PIP law, one thing is becoming very obvious – The New Law will not result in Insurance Savings for Floridians.

The only approved rate filing so far approved an 8% increase. This is despite the fact that the law expressly calls for a 10% rate reduction.

Furthermore, while OIR tries to stand behind a figure in the auditor’s draft report that eventually, the law will save 10-20% on premiums, they consistently fail to also cite that the report indicates that any savings in PIP will be offset by increases to other coverages, like BI or UM.

Finally, if the bill is going to be such a success, why is the insurance industry already publishing the need for new legislative “glitch” bills this upcoming session?

Knowledge Equals Power in Orlando Auto Accident Cases

All further indication and support of something I have said before – this new PIP law will fail and to truly lower premiums, Florida should just get rid of PIP for Mandatory BI. Otherwise, Florida will likely remain one of the most expensive insurance states in the nation

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Copyright © Michael T. Gibson, P.A. 2019