PIP Rates Projected to Decline
The Office of Insurance Regulation announced that rates for personal injury protection (PIP) coverage are projected to drop by an average of 13.2 percent. This analysis is based upon on a review of the rates of 20 insurers that comprise a majority of Florida market. It is important to note that PIP coverage makes up only a small portion of the overall auto insurance premium, so the projected decrease would translate to a 1.2 percent reduction in overall auto rates.
Chief Financial Officer Jeff Atwater has been closely monitoring auto and home insurance rates. Atwater supported the 2012 PIP reforms that have been leading to the reduced rates and commented through a spokesperson that the OIR’s recent report is a “positive trend” for consumers.
“PIP fraud remains a criminal activity that we are vigilantly fighting, but the positive progress being made suggests that the recent PIP reforms should be allowed to continue working to help improve Florida’s auto insurance market,” said Atwater spokesman Chris Cate.
In its report, the Office of Insurance Regulation noted that, “The estimated average statewide savings reflect a positive trend in comparison to 2011, when 86 percent of auto filings were for proposed increases in ‘no-fault’ premiums — the vast majority for double digit increases.”
The OIR’s report comes at a time when some policymakers are continuing to call for a complete repeal of Florida’s no-fault auto insurance system. Some policymakers believe the state instead should rely on mandatory bodily injury insurance, which they point out is already carried by most motorists.