Changes to Auto Insurance Law in Florida
Michael Babboni
Insurance Coverage
Some major changes may be in the works regarding auto insurance in the state of Florida. House Bill 1063 is a 129-page proposal that could change the way we purchase auto insurance and could potentially save us money in the long run when it comes to our premiums and other costs.Currently, you are required to purchase $10,000 worth of coverage in Florida for personal injury protection. Under this bill, however, that amount could more than double and reach a $25,000 limit. The supporters of the bill claim it will help save money in the long run, but to others, the numbers don’t add up to any kind of savings.
The new bill would effectively replace Florida’s no-fault insurance system with a new structure that will instead require motorists to obtain bodily injury coverage of $25,000 per person. They say the rise in coverage is to compensate for the rise in healthcare costs and is necessary to help cover the medical costs that are involved following an accident, claiming that $10,000 is no longer a sufficient amount of coverage.
Supporters are also stating that the new structure will save Florida drivers a total of approximately $80 per year, but with the already rising cost of insurance that we have seen over recent years, they find that to be untrue.
Others also say that if there are to be any changes to auto insurance law and required coverage amounts, then there should also be protection put into place to help deter false claims and insurance fraud. These fraudulent lawsuits cause Florida drivers’ money every year in higher premiums and increased costs across the board, yet there are still no protections in place to prevent this from happening.
Insurance fraud has the capability of slowing down real insurance claim processes and increases the premiums we have to pay. Fraud occurs when a person tries to gain compensation or some other benefit or advantage that they are not entitled to from the insurance company. Fraud occurs when a vehicle is dumped, and then they claim it was stolen, false registration, exaggerated repair costs, faulty airbag replacement, and faulty windshield replacement.
While supporters of the bill are ready and eager to see this substantial change, many others are critical of the change and the more than doubled amount of coverage that may be required due to increasing healthcare costs. Even though we have been feeling the sting of these increased costs over the years with already increasing premiums.
Critics of the bill want to see the savings, and they also want more protection in place to help ease the costs involved with insurance fraud when it comes to their premiums.
To get a better idea of how the new bill could affect you as a Florida driver if it passes, you can talk to your attorney, and they will be able to explain all the legal terms to you, so you gain a better understanding of what you can expect.