If you're a resident of the Sunshine State, you may be wondering how your auto insurance rates will change if an attempt to move away from the state's no-fault insurance laws is successful. Recently, an end to the statutory requirement that drivers carry personal injury protection (PIP) insurance passed the Florida legislature, making an end to no-fault insurance all but inevitable. What can you expect when it comes to changes in your own auto insurance rates and coverage? Read on to learn more about some of the proposed and pending changes to Florida's no-fault insurance laws, as well as how this could impact your auto insurance policy.
What changes are being made to Florida's insurance laws?
Like only a few other states, Florida has historically required its drivers to carry PIP insurance with a minimum of $10,000 in coverage. This PIP protection can help cover the cost of physical injuries you suffer in an auto accident, regardless of who is at fault. However, this arrangement can often work against good drivers, as your own at-fault-accident-free history may not make much of a difference if you're involved in one or more accidents that are the fault of another driver, as your insurance policy will pay out the same amount regardless of who caused the accident.
What effect can you expect these changes to have on your auto insurance rates?
Removing the PIP coverage requirement will likely lower your auto insurance rates, as you'll be carrying less coverage on yourself. You may also be able to benefit from rate reductions and other incentives offered to those with a good driving history; because your insurance policy will need to pay out only in the event of an at-fault accident (or if you're struck by an uninsured motorist), showing your accident-free history and a lack of speeding or other traffic tickets will help prove you're less of a liability risk than other drivers.
The end of requiring drivers to carry PIP coverage for their own injuries will mean that being hit by another driver may require you to negotiate directly with their insurance company. Your insurance agent should be able to help you with this process, but it can be quite an adjustment for those who are used to dealing only with their own agent and agency. If you don't already have your own dedicated insurance agent, now is the time to find one. For more information, contact a business such as United Counties Insurance Group.