PIP Reform: Will it Work?
Florida’s new PIP insurance standards went into effect some months ago; however, the possibility of positive effects from this reform are still uncertain. What is PIP coverage?
PIP stands for personal injury protection, and is a form of bodily injury insurance, except that it covers the policyholder regardless of who is at fault up to a certain policy limit. The current limit in Florida is $10,000.
To recap, the changes that were made to the way PIP works were put in place to stem the rampant fraud taking place in the state. The two biggest problem areas are South Florida and Tampa. What the reform does is limit non-emergency hospital treatment benefits to the sum of $2,500. In addition, it also imposes a 14 day limit on accident victims to seek medical attention.
However, the million dollar questions are: Will this reduce the amount of fraud taking place, and will it be enough to coax insurance companies to reduce premiums?
Insurance Companies
While this reform will most likely reduce the amount of claims being processed, it probably won’t immediately translate into savings as lawmakers hope. Others remain hopeful that it will result in premium savings.
According to the InsuranceJournal, PIP costs have risen by the staggering figure of $1.4 billion since 2008, largely in part due to the insurance fraud. They further go on to say that some experts believe that if this reform cannot stem the problem, that PIP might be placed on the chopping block and gotten rid of.
“I think this is our last best chance,” said Michael Carlson, executive director of the Personal Insurance Federation of Florida. “You’ve got very smart people, both Democrats and Republicans, who would like to see PIP eliminated.”
Not surprisingly, insurance premiums continue to be high amidst this very real problem. However, there are many discounts offered by insurers out there that are made to make life easier for the policyholder. There are safe drivers discounts, homeowners discounts, even good student discounts. It’s just a matter of getting a hold of the right insurance company, and shopping around.
Now’s a good time to review your policy, and make sure you have the coverage needed. For Florida up to date auto insurance laws, follow this link www.autoinsuranceez.com/florida/.
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