Personal Injury Protection premiums falling
|By Gary Pinnell, Highlands Today, Sebring, Fla.|
|McClatchy-Tribune Information Services|
It took two years to implement, but most insurers calculated rates using a Pinnacle study, which projected that reforms contained in HB 119 would save 14-24 percent in Personal Injury Protection premiums.
Instead of establishing who is at fault in an automobile accident, PIP -- also called no-fault insurance -- provides injured drivers up to
Although PIP coverage makes each driver responsible for his or her own injuries in an accident, and although the number of drivers and auto accidents has remained constant, the number of PIP claims and PIP payments skyrocketed in previous years. The
"There is a lot of fraud in the system," then-State Rep.
While PIP premiums represent roughly 2 percent of
In her last House term, Grimsley, R-
The result: in
PIP insurance accounts for about 25 percent of a consumer's total auto insurance premium cost; therefore, a statewide average decrease of 13.2 percent in PIP will result in an overall reduction of 3-4 percent for a policyholder depending on the coverage purchased, the DOI said.
A preliminary DOI analysis of the rates submitted by the top 20 automobile insurance companies writing PIP insurance, encompassing more than 75 percent of the
DOI's analysis was compiled to demonstrate the cumulative effect of House Bill 119 after the first required rate filing due in
"The anticipated cumulative effect of these two rate filings in the legislation was a 25 percent overall decrease in PIP rates," Bogner said.
Auto insurers that did not decrease PIP premiums by the cumulative 25 percent were required to support and justify the reason the company's savings should vary.
Grimsley gave the new law faint praise.
"Like any major effort, it takes time," Grimsley said Saturday. "We haven't fully prevented insurance fraud, but we're making headway. This law is helping honest consumers, and that's exactly its purpose.
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