April 2, 2012

How Florida Automobile Insurance Costs Could Drop Thanks To New Laws

Automobile insurance laws are changing all the time. Most of the time, drivers have to deal with changes in automobile laws that ultimately negatively affect them, forcing them to pay more for their car insurance. This is especially true of states that have traditionally had no fault car insurance laws since states are rethinking their policies. Florida happens to be one of the states that are leading the way in car insurance changes. But these changes reflect driver worries and concerns and correct some current requirements that let bad drivers get away with fraud and allow insurance companies to charge high premiums. With these new changes come changes in overall car insurance costs. Drivers can see their car insurance deductible decrease and their overall automobile insurance costs drop because of these new Florida laws.

Currently, Florida law requires that all drivers carry the minimum personal injury protection amount, which is $10,000. What is known more popularly as PIP coverage, personal injury protection requires that drivers carry this health coverage amount to protect both themselves and the insurance provider. The new law affects more than just the drivers and the insurance providers; it also affects the medical providers that treat PIP patients. The new law will eventually decrease car insurance deductible amounts and lower monthly premiums.

Essentially, the new law eliminates acupuncture and massage therapy from covered care under PIP amounts. This will help decrease fraud on the part of drivers who pursue massage as a form of medical care when unrelated to a car accident. The new law will also force drivers that have been in an accident to receive PIP care within seven days to be able to claim the coverage. Some would require them to seek medical care within 14 days instead, though either option would help eliminate fraud. This way, drivers will still be covered if they need to get medical care after an accident, even if they do not have health insurance, and the insurance company will not have a higher risk of fraud.

This same Florida law would require insurance providers to reduce the amount of PIP premiums by 25 percent. The only way an insurance provider can avoid this deduction in premium for each driver is by demonstrating clear, convincing evidence that a higher premium is necessary and warranted. For most drivers, however, this means that their premiums will drop though they will still be able to receive the same amount of coverage as before.

New Florida laws are being discussed in order to change the way insurance providers offer plans. These new laws will keep people from committing insurance fraud and will also help reduce the amount they pay in premiums.