Let’s get right down to it.
20% or more increases in Car Insurance rates will be the norm for most people.
Its not one thing causing these increases.
Its more a perfect storm of issues putting pressure on Car insurance rates.
Lets discuss a few of these, starting with the thousands of lawsuits filed every day in Florida.
Lawsuit Abuse
Lawsuit abuse is one of the culprits for increased premiums.
Car Accidents are less about being made whole again.
They have become “Opportunities” for people.
And the Attorney ads, don’t help.
“So and So got me $300,000” is the battle cry.
So every accident becomes a chance to make money, encouraged by the constant drumbeat of ads.
People, who seem to fine at the scene of the accident, are suddenly “injured” after they get home.
This makes for numerous lawsuits with increased payouts.
And the Insurance companies pass the increased settlement cost on to their clients.
Windshield Claim Abuse
Another major “loophole” was closed by the legislature,
But not before it wreaked havoc on Car insurance.
This time focused on windshield glass.
You would think its a straight forward, fix the glass, bill the insurance companies.
But certain enterprising glass repair shops and certain attorneys figured a way to game the system.
Glass repair shops would have the insured sign an Assignment of Benefits form.
Then they would bill the insurance companies much higher than normal amounts.
The Insurance Companies refuse to pay the increased costs.
Plaintiff’s attorneys would come in and threaten litigation.
Sometimes this made it cheaper for the Companies to just pay the exorbitant bills rather than fight the lawsuit in court.
So the company pays the increased cost and the attorney’s fee.
And who pays for these increased costs?
You, my friend, in the form of increased insurance premiums.
The legislature closed this loophole, but that did not take effect right away.
This delay before the effective date of the legislation,
allowed for 46,000 windshield lawsuits to be filed from January to August 2023. The assignment-of-benefit changes only take effect upon renewal or reissuance of a policy, giving something of a “grace period” for lawsuits to be filed. By contrast, less than 600 were filed in 2011, indicating plaintiff attorneys are attempting to extract as much juice as possible before the Florida orange is squeezed dry.
Caroline Melear RStreet.org
Personal Injury Protection
The very nature of No-Fault Personal Injury Protection (PIP) makes good drivers pay for their own injuries caused by bad drivers.
That’s because the first $10,000 of injuries are paid from your own policy,
No matter who is at fault in the accident.
So a bad driver hits you and you have to collect from your own policy.
Even when you did nothing wrong and got hit by the other guy.
Higher costs are passed along to the rest of us because it raises the PIP rates charged to everyone.
Its hard to argue with the idea, that people will seek medical attention, sooner
if they don’t have to worry about who is at fault.
But it’s another example that we pay for the sins of others.
Which leads to another reason Car Insurance rates are increasing.
No Requirement in Florida to carry coverage for the Other People’s Injuries
Florida does not require Bodily Injury Liability coverage.
That’s right.
According to Florida law, a driver is only required to carry $10,000 of Personal Injury Protection and
$10,000 of Property Damage Liability.
So you are required to carry $10,000 of No Fault for your own injuries.
And $10,000 to fix the other person’s Car.
Bodily Injury Liability is not required by the law to get your tags.
That’s the part of the policy that pays the other person when you cause them injuries.
Estimates range from 20 -40% of drivers do not buy Bodily Injury Liability.
In most cases, Florida drivers have to rely on their own Uninsured Motorist Coverage to be reimbursed for any major injuries.
These costs are passed along to consumers through higher rates. (Sound familiar?)
The results are that responsible Floridians pay one of the highest rates in America for Uninsured Motorist coverage.
Costs of repairs
The latest technology in car manufacturing has also increased the costs of repairing cars.
These modern chips and computers make repairs much more expensive.
Electric cars, and especially their batteries, have caused claim costs to spike.
Not only are the batteries expensive to replace,
But they sometimes have a tendency to start fires which damages the whole car.
Think, more total losses on expensive electric cars.
Florida Drivers will be travelling a bumpy road in 2024.
The best advice we have is to drive carefully – no tickets, no accidents, and watch out for the other guy.
This will help you avoid any additional increases not based on Industry trends.
If your increase seems unreasonable, call us and we’ll shop for a better deal.
We are here to help.
Low rates, choice of companies and personal advice.
Cronin Insurance is the Wise Choice.
