Florida's economy has improved since the 2008 global financial crisis caused a drawn out downturn, but a recovering job market and lower gas prices have had a downside: more traffic crashes and higher auto-insurance rates.
Taking another step to reportedly reduce fraud in Florida, a state representative out of Delray Beach filed a proposal to end the state's personal-injury protection auto insurance system, known as "no -fault," in 2019. As reported by the Orlando Sentinel, this proposal came two months after Insurance Commissioner Kevin McCarty mentioned repealing PIP and "doing nothing" to further reduce fraud in the personal-injury protection system. The idea appeals to state Chief Financial Officer Jeff Atwater, too.
Do snowbirds need separate insurance when traveling to Florida for the winter season? According to Florida law, the no-fault law requires owners of motor vehicles that have been the state for at least 90 consecutive days or 90 non- consecutive days during the past 365 days to purchase a policy delivered or issued for delivery for Florida. The minimum coverage is: $10,000 of personal injury protection (PIP)and $10,000 property damage liability (PDL). So as a snowbird, that would cause some confusion and according to an article in the Boston Globe - it did. Mainly because their (Massachusetts) state auto insurance regulations exceeds those limits. In actuality, the state where the snow bird originally resides is what auto policy that would cover any issues during their stay in Florida, This is also affirmed by the Florida Office of Insurance Regulations who states that a snow bird's home state auto policy is sufficient as long as it meets the minimum requirements of Florida requirements.
Auto Insurance Carriers are getting creative on how they get your business so if you have not done some comp
Auto insurance companies trying to set rates by zip codes, according to a recent article in Palm Beach Post. This was an attempt by a group of car insurance companies to have a state law that would allow them to set rates in a territory as small as one zip code. Since the Florida legislature is no longer in session, this attempt appears to be a dead bill that will have to wait another year. According to the Consumer Federation of America, this dead bill was a good thing. According to this think tank, there could have been a high potential for abuse, and potentially creating pockets of high rates, in effect shutting out customers from the wrong side of the tracks. It was "not credible and therefore not actuarially sound," said Bob Hunter, director of insurance for the group.
A new research project showed driving in Florida will cause your insurance costs rank to among the nation's highest. According to insuranceQuotes.com, lorida drivers pay 12 percent above the national average. The report makes it calculations using quotes from carriers representing 60 percent to 70 percent of the market. Why? One factor is a state requirement that forces Floridians to buy at least $10,000 in Personal Injury Protection coverage that duplicates medical insurance drivers already have through Medicare or private health plans. That tends up to push rates in the few remaining no-fault states like Florida and Michigan, analysts say. Also, there's geography - which involves things like a higher risk of catastrophic weather, analysts say. Throw in some accident fraud and bad driving and there you have your above average premium