Insurers say PIP changes likely to mitigate premium increases, for now
Auto insurance companies say the state's new no-fault auto insurance law will save drivers money by staving off insurance premium increases.
But drivers shouldn't expect their insurance bills to dip immediately either.
As part of insurance reforms passed last spring, car insurers had a Monday deadline to either reduce personal injury protection premiums 10 percent or explain why they could not.
Many companies took the second option, filing paperwork with the state asking to again increase PIP rates, the state said.
The state-mandated changes, insurers say, will reduce personal injury protection costs, just not enough to completely offset other factors that justify higher premiums. That means the law created by HB 119 is working, Insurance Commissioner Kevin McCarty said in a statement Monday.
"Although it initially appears the savings will result in a mitigation of rate increases rather than actual rate reductions for most companies — it does represent a major shift in the trajectory of PIP insurance rates in Florida," he said.
Read more about how insurers are responding to the new PIP law here.
And here is a link to the OIR press release, which lists the eight companies whose PIP rate filings have already received state approval.