Florida Auto Insurance: Two New Bills That Could Change Everything
Auto insurance costs continue to increase significantly in recent years. Additionally, Florida’s insurance markets were badly hit in 2020; for one, home insurance premiums have skyrocketed as insurance companies requested for a significant price increase to cover the rising reinsurance costs. In turn, this increases litigation and storm claims.
To address the growing issue, the state’s insurance regulator conducted an examination of the financials. However, the numbers are not yet in but the previous year’s losses to the state can reach over a billion.
In the auto insurance industry, there is also a noticeable increase over windshield replacement claims. There are now some proposed bills to resolve these underlying issues. These proposed bills are:
Florida has a no-fault law when it comes to car accidents. For a decade, there have been talks about changing this due to the rising fraudulent claims.
To address the issue, a bill is being proposed that will require drivers to carry $25,000 in coverage for bodily injury or death they case another individual. The amount doubles for two or more people.
Additionally, the bill proposes that drivers to have $10,000 coverage for property damage, while insurance companies will be required to provide medical payment coverage with $5,000 or $10,000 limits.
When it comes to the most litigation claims in the state, auto glass replacement tops the list. Usually, breaks or cracks on the windshield are covered by comprehensive auto insurance and repair companies may offer to work with the insurance company for the claims process.
However, glass companies file a lot of lawsuits every year over disputes about the fair price of a windshield replacement.
A bill is being proposed to prevent repair shops from offer anything in exchange for making an auto glass insurance claim. Additionally, it will require repair shops to provide customers with a written notice before they file a lawsuit. In turn, insurers will be required to respond to the lawsuits in a certain time frame and follow a process to address the dispute.
These proposed bills may change Florida’s auto insurance system. Some oppose these bills because they could increase insurance rates.
Despite that, the Florida House voted an 88-15 vote to repeal the no-fault auto insurance law. With this, Florida drivers will save more money because they no longer need to pay for the cost of PIP protection, which has increased significantly in recent years.
Indeed, Florida drivers deserve good auto insurance coverage. The said bill would end the state’s status as one of the only two states in the country that don’t require drivers to get bodily injury insurance. This new legislation can be the biggest change to auto insurance coverage in nearly 50 years.
Find an Excellent Personal Injury Attorney
If you or a loved one has gotten into a vehicle accident in Florida, it’s crucial you have excellent legal representation. Make sure you find a reliable law firm that can help you go through the process and get the compensation you deserve.