Possible changes to auto insurance, no-fault out the door? (Tallahassee: good credit, lawyers)

[movingaround85]

If you've been watching the news you've probably heard about the bill in Tallahassee that passed the Senate which would remove the requirement to carry PIP insurance and add a minimum of $25,000/50,000 in bodily injury insurance in order to drive in Florida.

I recently moved from Georgia and my insurance went from $550 every 6 months there to about $1,100 every 6 months. I do carry decent insurance coverage such as $100k in bodily injury and $100k in property damage coverage so maybe that's more than some of you carry.

There are those for and against this change.

Those for:

1. $10k in PIP is simply not enough coverage in 2021. A visit to the ER with a scratch eats that up.

2. By requiring bodily injury insurance and getting rid of the PIP requirement those that already have decent insurance coverage will see their rates go down.

Those against:

1. Insurance companies argue that up to 40% of their customers have the bare minimum insurance coverage and some would possibly just not carry insurance if they had to purchase more insurance and make their rates go up.


Personally i'm in favor of the change. Why? Because those of us who actually pay to have decent coverage are subsidizing the insurance of those who choose to just get the state minimum insurance coverage. I mean let's be honest, do you really want someone with only $10,000 insurance coverage driving on the road?

If this change were to take place it would also need to be coupled with a crackdown by law enforcement of those who drive without insurance. I get it that times are tough and everyone has different economic situations. But getting in a car accident with someone who only has $10,000 in coverage will frequently result in you having to file a claim with your own insurance and then your insurance rates going up even more because the other person didn't have enough coverage.

What are your thoughts?

[_burrito]

PIP has been horrible. It's intentions are noble, but in practice, all it has done is raise rates (FL has some of the highest rates in the nation) and provide an environment for shyster lawyers and fake chiropractic docs to thrive in. I'd love to live in a world without 1-800-Ask-Gary.

[bmw335xi]

Try getting a quote from Geico and Statefarm. I'm paying $780 (6 months) for a Tesla with 100k/300k coverage along with rental, medical, all the bells and whistles etc with $100 deductibles for collision and comprehensive.

[movingaround85]

Originally Posted by bmw335xi

Try getting a quote from Geico and Statefarm. I'm paying $780 (6 months) for a Tesla with 100k/300k coverage along with rental, medical, all the bells and whistles etc with $100 deductibles for collision and comprehensive.

I had Geico and they were at around $1,200 for a 6 month policy. I switched over to AAA which is at $1,080 for 6 months. Not sure what your specifics are but i'm in my mid-30s, single, good credit, and 1 not at fault accident last year where someone slammed into me while I was stopped at a light. No tickets. I drive a 2020 Jeep Cherokee and I think the issue is that my zip code is in Kissimmee even though i'm actually on the other side of I-4 in Reunion.

[Roger Lessman]

Originally Posted by _burrito

PIP has been horrible. It's intentions are noble, but in practice, all it has done is raise rates (FL has some of the highest rates in the nation) and provide an environment for shyster lawyers and fake chiropractic docs to thrive in. I'd love to live in a world without 1-800-Ask-Gary.

This. All day long. Their enrichment comes at the expense of policy holders.

[Roger Lessman]

Originally Posted by movingaround85

If this change were to take place it would also need to be coupled with a crackdown by law enforcement of those who drive without insurance. I get it that times are tough and everyone has different economic situations. But getting in a car accident with someone who only has $10,000 in coverage will frequently result in you having to file a claim with your own insurance and then your insurance rates going up even more because the other person didn't have enough coverage.

What are your thoughts?

Driving without insurance needs to have real consequences. Namely, repeat offenders need to be removed from the road. Of course, without a car it's hard to get around in Florida. So we should invest in mass transit. It would provide an affordable way for people to get around and remove a lot of drivers (insured, uninsured, and under insured) from the road.

[movingaround85]

Originally Posted by Roger Lessman

Driving without insurance needs to have real consequences. Namely, repeat offenders need to be removed from the road. Of course, without a car it's hard to get around in Florida. So we should invest in mass transit. It would provide an affordable way for people to get around and remove a lot of drivers (insured, uninsured, and under insured) from the road.

I feel like Florida cities are too spread out for mass transit to be as effective as New York or Chicago. Even if they doubled the bus routes etc I think most people still wouldn't take them.

In my opinion getting rid of PIP and going to a more traditional insurance concept (like other states) will bring down insurance rates as it will eliminate some fraud claims as well as lower the underinsured motorist portion of your premium since there will be a $25,000 bodily injury minimum in place.

I feel like there needs to be some sort of incentive to get more people into the "insured" pool and reduce the number of uninsured or underinsured drivers on the road. This would benefit everyone.

Would you guys be opposed to some kind of subsidy for 1-2 years to those that have incomes under a certain threshold (let's say under $35k per year) and that are currently either uninsured or have just the state minimum insurance coverage?

I know...i'm generally against rewarding bad or irresponsible actions (such as driving uninsured) but this would in turn benefits the rest of us that pay to have adequate coverage as our premiums would ultimately drop. But as others have said, we also need to really crackdown on those driving uninsured.

[Roger Lessman]

Originally Posted by movingaround85

I feel like Florida cities are too spread out for mass transit to be as effective as New York or Chicago. Even if they doubled the bus routes etc I think most people still wouldn't take them.

This is not an uncommon take, but I've seen transit work outside ultra-dense cities like that. While challenging, it's not impossible. And if we were to potentially disqualify people from driving legally, we'd have to give them some way to get around.

Originally Posted by movingaround85

Would you guys be opposed to some kind of subsidy for 1-2 years to those that have incomes under a certain threshold (let's say under $35k per year) and that are currently either uninsured or have just the state minimum insurance coverage?

I wouldn't be opposed, but I would also be surprised if many people kept the coverage after the subsidy period ended. Florida has one of the highest rates of uninsured driving in the country.

[cfenn006]

Originally Posted by movingaround85

I had Geico and they were at around $1,200 for a 6 month policy. I switched over to AAA which is at $1,080 for 6 months. Not sure what your specifics are but i'm in my mid-30s, single, good credit, and 1 not at fault accident last year where someone slammed into me while I was stopped at a light. No tickets. I drive a 2020 Jeep Cherokee and I think the issue is that my zip code is in Kissimmee even though i'm actually on the other side of I-4 in Reunion.

Thats exactly the problem. That Central Florida zip code skyrockets the policy cost. Just look at the people driving here... Ive bounced around the state and the highest rates I ever paid was with a akissimmee zip.

[movingaround85]

Looks like the House just passed their version of the bill and the Senate will vote on it this week.

I was just looking over my insurance policy and just being able to get rid of PIP would save me $130 every 6 months. I already carry bodily injury and uninsured motorist at 100/300 as well as property damage so I won't have to increase coverage there at all.