The dreaded letter

Well, yesterday, I got the "dreaded letter." No, it wasn't from the IRS, though it is tax season now, and I'm trying to put all my records and receipts together. It was a letter from my car insurance company, which I have used for 56 years, informing me that it was discontinuing auto and property insurance in Florida when my policy expires.

One of the main reasons is fraudulent lawsuits, especially personal injury cases, which cover medical expenses and lost wages. Drivers must have a minimum of $10,000 in personal injury protection (PIP) and a minimum of $10,000 in property damage liability (PDL). But many of these lawsuits amount to millions of dollars.

Florida accounts for 79% of all insurance lawsuits in the U.S. Lawyers have more incentive to take cases due to a 2017 state Supreme Court decision allowing higher fees for these cases (if won).

The Florida Office of Insurance Regulation (OIR) regulates the insurance business in Florida. Thus, red tape can slow down any rate increases. Several cities are noted as more "accident-prone." There are many uninsured drivers, which cost Florida citizens more because insured drivers pay higher premiums to cover accidents with uninsured motorists. About 16% of all drivers are uninsured in Florida, which is above the national average (14%). Licensed insurance companies must report policy cancellations to the Florida Highway Safety and Motor Vehicles (FLHSMV) electronically. But still, you have uninsured drivers on the road illegally.

Perhaps impounding vehicles from uninsured drivers may sound harsh, but something needs to be done to help law-abiding citizens with insurance.

The Florida Legislature must address the issue of fraudulent litigation and make it less favorable for lawyers to take cases due to higher incentive fees. There needs to be a system to identify "vexatious litigants" who repeatedly file fraudulent lawsuits. The message to citizens to report potential litigation fraud is in everyone's best interest. Courts can impose penalties on plaintiffs or their attorneys who file lawsuits with no legal basis. More review of attorney ethics is needed. Insurance companies are in no way innocent bystanders, but the scales have tipped too far in the plaintiffs' direction when it may be unwarranted.

We may all get this dreaded letter soon unless we can make Florida more hospitable for insurance companies to remain here.

Bob Yao

Crystal River