10 Percent Reduction in PIP Premiums?
Posted By Garrett Riley || Jan 31, 2013
As part of the new changes in Florida’s PIP statute, car insurance companies had an October 1, 2012 deadline to reduce PIP premiums by 10 percent or explain why they could not. The Tampa Bay Times reported that so far, three companies have been able to reduce PIP premiums by ten percent. However, four other insurance companies will be allowed to raise PIP premiums by between 3.9 and 26.3 percent.
The companies that could not reduce rates argue that the law has prevented them from having to ask for a higher rate increase and that better results and lower premiums will ultimately result. No one is sure when that might happen and it is going to be important to continue to track the behavior of these car insurance companies moving forward into 2013 when the law takes effect.
The $10,000 limit on Florida’s PIP insurance has not changed for many years and has not kept up with the rising costs of medical costs and inflation. However, the Florida legislature recently reduced the PIP limit even lower to $2,500 unless you suffer from what a doctor determines to be an “emergency medical condition.”
It also requires car accident victims to seek medical treatment within 14 days of the accident and will no longer cover massage therapists or acupuncture treatment. It is critical to be mindful of the new law taking effect January 1, 2013 because if you are injured in accident anytime next year, you will be subject to the new law. It is suspected that there will many challenges to the new law and it will be important to speak to a Tampa personal injury attorney to discuss how the new law is being applied.