Insurance Rates Increase, Despite Law Calling To Lower Them

insurance rates

Reforms from four years ago were supposed to send auto insurance rates down for Floridians. An NBC Miami story looked at records obtained from the Florida Office of Insurance Regulation which show that overall premiums have increased 13 percent since January 2015. PIP premiums increased slightly more, 14 percent.

A Tampa Bay Times story published today backs up some of those statistics.

The 2012 reform package, signed by Gov. Rick Scott, came with a plan to stamp out rampant fraud in Florida’s no-fault car insurance coverage known as PIP or Personal Injury Protection.

So here’s the question: despite making it harder for injured folks to make PIP claims for injuries and despite making BILLIONS in profits off of Florida consumers, the insurers continue to raise rates.  If they did away with PIP, would rates drop?

high insurance rates

Not every state requires PIP like Florida. In the last few years, there have been unsuccessful attempts to repeal PIP.

Here are some numbers from that NBC Miami study.

Year       PIP premiums      Direct losses

2011      $2.8 billion             $2.7 billion

2012      $3.3 billion             $2.3 billion

2013      $3.5 billion             $1.8 billion

2014      $3.224 billion         $1.943 billion

2015      $3.164 billion         $2.341 billion

 

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