Average PIP savings under new car insurance law: 2.5 percent
On the last day of the legislative session this year, Florida lawmakers said they wanted guarantees from insurance companies that PIP premiums would go down by 10 percent in 2013. Right now, it's looking like the savings under the new no-fault car insurance law will be about one-fourth of that.
HB 119 required insurers to submit new rate filings by Oct. 1 that either reduced PIP premiums by 10 percent or explained why they could not. Most insurers chose option No. 2.
The state is still in the process of reviewing most of the 141 rate filings from 151 companies selling auto insurance in Florida, said Sandra Starnes, director of property and casualty product review at the Florida Office of Insurance Regulation. She was speaking during a session on PIP Reform at the Florida Chamber's Annual Insurance Summit.
The rate filings are all across the spectrum. Some companies said they would reduce PIP by as much as 25 percent while the biggest requested increase is 41 percent. The average, as of Nov. 16, is a 2.5 percent reduction in PIP, Starnes said.
As of this week, 64 rating filings have been approved.
Drivers who renew their auto policies after Jan. 1 will see their new HB 119-affected PIP rates reflected on their bills. That is also when many provisions of the new law take effect.