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Insurance Companies Claim PIP Changes Should Slow Premium Increases

Florida’s Personal Injury Protection Insurance law (PIP) was changed recently. These changes have made it harder for injured parties to be compensated for their injuries after a car accident For example, accident victims only have 14 days to seek initial treatment, are likely eligible for only $2,500 in coverage (instead of the $10,000 that they paid for), and massage therapists’ and acupuncturists’ care are no longer covered by PIP.

The insurance companies argued that this reduction in PIP coverage would allow them to reduce rates. However, few companies are. According to a recent Tampa Bay Times article, Florida Farm Bureau increased its PIP rates 8%. As of the time of the writing of the article, of the seven auto insurance companies writing policies in Florida prior to HB 119 (the PIP reform statute), four of the companies will be allowed to raise their PIP rates between 3.9% and 26.3%.

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