Motorists in Florida should see a drop price on their insurance policies when the state's no-fault personal injury protection law sunsets October 1, an industry trade group is forecasting.
William Stander, assistant vice president and regional manager for the Property Casualty Insurers Association of America, said the end of PIP will result in an immediate cash savings averaging about $250 per insured.
Jonathan Kees, spokesman for the Florida Officer of Insurance Regulation, said any cost savings will vary according to company and that the OIR has not done any study to either support or refute the PCI claim.
Bill Newton, executive director of the Florida Consumer Action Network, said consumers could end up paying more out of another pocket when PIP expires.
"Consumers will need to buy more to compensate for the loss of PIP," he said. "You can't count on the other person to have enough insurance to cover your injuries, so you need adequate uninsured motorist coverage," he said.
Mr. Stander said that with PIP claims fraud and abuse have forced consumers to pay higher premiums due to frivolous lawsuits and spiraling medical costs.
Mr. Newton countered that the solution to fraud is more vigorous prosecution. "Why let criminals dictate our behavior? There is a proven solution to fraud, but insurers are sometimes reluctant for fear of alienating customers."
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