Changes to the Personal Injury Protection auto insurance system are going to reduce premiums from 14% to 25%
Oklahoma City, OK -- (SBWIRE) -- 09/10/2012 -- According to a report in regards to the Personal Injury Protection auto insurance system, it is going to reduce premiums from 14% to 25%. The report that was released today, said that a statement from regulators warned that overall rates should not go down at all, however the insurers notified the regulators that the other costs could balance savings.
Count Bill Newton, executive director of the Florida Consumer Action Network, said, “We should collect all these excuses from insurance companies and hopefully no one will say my dog ate it”. As for state officials, they “don’t need to make ready-made excuses for the insurance companies.”
According to the new law that was passed this spring, car insurers are supposed to file a 10 percent reduction in PIP rates by the 1st of next month (i.e. October) and they have also been ordered to file a reduction of 25 percent by 2014.If the reductions aren’t filed by the deadlines, the insurance companies they will have to explain why not.
The Group’s State Government Counsel, Donovan Drown, states that, “The Property Casualty Insurers Association of America has ongoing concerns with the study’s conclusions and the fact that they are based on a law which does not fully take effect until next year.”
The PIP rates vary, but they represent a 20 percent of the overall bill for many consumers. So according to that, a 25 percent in reduction of the PIP cost will result in almost five percent of a cut in the overall bill.
On March 7th, United Group Underwriters contribute a handsome amount of $100,000 to a political committee, Scott’s Let’s Get to Work, and the billed passed on March 9th in what the governor called a “victory for drivers and family budgets.”
Scott said, “By helping reduce fraudulent auto accident claims, this legislation will benefit the pocketbooks of every Florida family who drives an automobile.“
InjuryLawOklahoma.com (http://www.injurylawoklahoma.com) is a law firm dealing in injury law in Oklahoma. Injury Law Oklahoma specializes in providing great services to their clients and resolves their cases quickly through their highly qualified injury lawyers like Joe Carson.
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