If Fla. No-Fault Expires, State Farm’s Rates Could Drop 16%

June 1, 2007

  • June 1, 2007 at 12:55 pm
    Dawn says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Until they make it a felony to drive without insurance. If someone with no insurance hits you, suing them isn\’t going to make it better.
    What will it do for the rates for UM coverage?

  • June 1, 2007 at 1:05 am
    Larry says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    When PIP ends and injured parties can sue from first dollar injury, how long will it take for the increase in suit costs and settlements to outgrow the savings that State Farm is proposing?

  • June 1, 2007 at 1:08 am
    Wrong Decision says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    When No-Fault was first introduced in Florida, Liability premiums were required to be reduced by 15% while the PIP coverage was rolled on. Now after many changes since the early 1970\’s they want to scrap a system that provides first party payment for doctor and hospital bills. St. Farm says insureds can use their health coverage to pay for these claims. Those who do have health coverage will find their premiums being increased and their employers will force employees to pay more of that cost when those rates go up. As hospitals treat accident patients without insurance they will have unpaid bills forcing them to raise their rates for treatment.
    Florida legislators should fix the problem and maintain the benefits otherwise the initial premium reduction will appear somewhere else.

  • June 1, 2007 at 2:45 am
    Old Agent says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    State Farm has been not too competitive on the auto rates for sometime in Florida. Most all carriers are looking at auto as a way to make up for the lost property premium in Florida. One might conclude for State Farm, or any other company thinking of reducing rates, and tying it in with a possible no-fault sunset, this just be a way to try to put a positive spin to get free media exposure and try to attract some business. As for passing claim expense to the health insurers, I am not aware that health insurers will not be able to be reimbursed for what they paid to medical providers due to their insured being injured in an auto accident. The rate reduction due to auto no-fault sunset does not appear to make sense, outside of looking for media attention. Once again, our industry in Florida will probably shoot itself in the foot now with auto, and all this will be allowed by both the OIR and the Honorable Governor Charlie Crist because of political popularity of any rate reduction, though short sited. Remember that OIR and the Honorable Governor Charlie Crist are suppose to be certain that rates are actuarially sound that are being charged by the carriers. This kind of has the hint of the old cash flow underwriting that State Farm and some other carriers did on property insurance in Florida pre-Andrew, and we know that their not charging adequate property rates almost cost them the FARM in this STATE. Those of us who were around pre no-fault without PIP can remember that we had a problem with auto insurance availability in Florida. Looks like if no-fault is allowed to sunset, we might be heading down the same path again. Yes, we do need to reform no-fault in Florida, but we do not need to be throwing it out. Florida politicians need to consider reforming and keeping no-fault, reinstating mandatory BI again at limits that make sense, put a higher limit on mandatory PD thatt makes sense, and put some teeth into enforcing the law.

  • June 1, 2007 at 2:53 am
    Pat Beranger says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    No Fault is one of those things that sounds great in theory but stinks in practice. Without PIP companies will offer medical payments which provides emergency medical services. For injuries over med pay there is UM and the tort system. States that have done away with PIP have realized long-term savings by addressing the underlying problems: fraud and cost containment.

    I think it is brilliant of State Farm to get their rate reduction subject to the sunset. The only way this thing won\’t sunset is for \”Governor I\’m Reducing Rates\” to put it on the legislative agenda at which point State Farm would simply withdraw their filing.

  • June 1, 2007 at 3:52 am
    Mark says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Pat,great comments. PIP has been abused for too long and hasn\’t solved many problems. It\’s easy to say we need to enforce the law but we can\’t seem to adequately enforce other, more important traffic violations. Can\’t blame the police, there\’s not enough of them.

  • June 1, 2007 at 5:55 am
    GT says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Big insurance is at it again! The automobile insurance industry and its lobbyists are attempting to convince Floridians that they will pay lower premiums if our current no-fault system (PIP) is done away with.
    That is NOT TRUE! While our current automobile no-fault system (PIP) is not perfect, it has been working extremely well for the responsible citizens of Florida for more than three decades. Why change it now? PROFITS over PEOPLE is why! Big insurers know that if PIP is done away with, they will be able to charge higher premiums for automobile medical payments coverage and uninsured/underinsured motorist coverage. The logic of letting the \’\’at-fault party\’\’ pay for damage they cause is an ideal principle. However, we do not live in an ideal world.
    Should PIP sunset, responsible drivers WILL end up paying far more for auto insurance as they will have to add more coverage to protect themselves against uninsured drivers. Not to mention, without PIP, most accident victims will need lawyers to collect the economic and non-economic damages from the automobile insurance companies or the “at-fault party.\’\’

  • June 1, 2007 at 6:01 am
    Bill says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    I couldn\’t agree more with you. No-fault sounds great in theory, and maybe when the laws were first changed it worked the way it was supposed to. Now, those states with no-fault pay some of the highest premiums in the country. Those states that have gone away from it have seen lower premiums.

  • June 2, 2007 at 3:24 am
    LL says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Without No-fault, the tedious work of collecting (subrogation) from the at-fault party’s insurer will fall on the injured policy holder’s shoulders. Anyone looking forward to that? How about paying for your injuries now, getting reimbursed by his (let’s say, State Farm) carrier two years later, but after spending hundreds of hours chasing it down? Or losing 30% of it to your lawyer?

  • June 6, 2007 at 3:48 am
    legisative$$$$$ says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    State Farm and some other insurers say the PIP system has been plagued with fraud and abuse, and supported lawmakers’ decision during the legislative session not to continue it.

    “With the state’s blessing,
    State Farm and some other insurers say the PIP system has been plagued with fraud and abuse, and supported lawmakers’ decision during the legislative session not to continue it.

    “With the state’s blessing, Boy oh boy>>> Why will the State God lets help State Farm!! some more good old boy work>>

  • June 6, 2007 at 3:57 am
    a$4 night!! says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Subject: Ratings For the bad– boys–Subject: Ratings For the bad boys. I am sick of all of this!!111. I know lets all spend the money –for its know -Fault. what a joke!!! And we all play this game with state farm.. wake up !! One person can make this bull stop!!!!!!!!! Say no more… Tell the big boys to look for a new job… Its about the people. have we forgot??????

  • June 6, 2007 at 6:55 am
    do not forget, says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Consumers are becoming sick of how they are being treated by companies like State Farm. Consumer complaint websites are full of complaints about State Farm and its practices. My3cents.com has long lists of reviews complaining about how consumers have been treated by the insurance company. Among the complaints:

    • That State Farm added an additional premium after the initial premium had been paid;
    • That State Farm only pays a portion of damages in an automobile rental accident regardless of who is at fault;
    • That State Farm disagrees with police officers over assigning blame for car accidents; and
    • That State Farm customer service representatives are rude, condescending, and give contradictory information.

    However, it is not just consumers who are unhappy with the insurance industry. State Farm and other insurance companies came under fire from a recent report commissioned by John Garmendi, the California Insurance Commissioner. In his report titled “Lower Claims, Higher Profits: Where do Your Premium Dollars Go? An examination of the burgeoning profitability of homeowners and private passenger automobile insurance companies and its impact on consumers” (May, 2006) Garamendi studied loss ratios for a number of homeowner and automobile insurance companies including State Farm. In his report, Garamendi asked the question “Are premiums excessively high compared to the money paid out on insurance claims?”

    Garamendi’s report analyzed the loss ratio data for insurance companies from 2001 through 2005 (loss ratio is the ratio between the dollars paid out to settle claims and the dollars received from policyholders to pay premiums). Among his observations on auto insurance, Garamendi noted that most insurance companies are quick to submit rate filings in order to raise premiums when loss ratios increase, but when loss ratios decrease few insurance companies ever file to lower consumer premiums.

    Garamendi also stated in the introduction to his report, “…an insurance company might have a lower loss ration when it fails to reduce its rates despite decreased losses. This is especially true if it had previously raised its rates when losses increased. If such a trend surfaces, one can infer that the insurance company is overcharging its policyholders.”

    State Farm and other insurance companies make a lot of money off the premiums they charge their customers, even if some of the premiums include illegal charges like the accident surcharge. If you paid the accident surcharge when you bought a policy with State Farm Insurance, you may be eligible to join a class action lawsuit. Talk to a lawyer to discuss your options.
    Subject Posted By Posted On
    I care ??? May 9, 2007, 3:57 pm
    RE: RE: No More Bubba May 9, 2007, 3:14 pm
    Consumers are becoming sick of how they are being treated by companies like State Farm. Consumer complaint websites are full of complaints about State Farm and its practices. My3cents.com has long lists of reviews complaining about how consumers have been treated by the insurance company. Among the complaints:

    • That State Farm added an additional premium after the initial premium had been paid;
    • That State Farm only pays a portion of damages in an automobile rental accident regardless of who is at fault;
    • That State Farm disagrees with police officers over assigning blame for car accidents; and
    • That State Farm customer service representatives are rude, condescending, and give contradictory information.

    However, it is not just consumers who are unhappy with the insurance industry. State Farm and other insurance companies came under fire from a recent report commissioned by John Garmendi, the California Insurance Commissioner. In his report titled “Lower Claims, Higher Profits: Where do Your Premium Dollars Go? An examination of the burgeoning profitability of homeowners and private passenger automobile insurance companies and its impact on consumers” (May, 2006) Garamendi studied loss ratios for a number of homeowner and automobile insurance companies including State Farm. In his report, Garamendi asked the question “Are premiums excessively high compared to the money paid out on insurance claims?”

    Garamendi’s report analyzed the loss ratio data for insurance companies from 2001 through 2005 (loss ratio is the ratio between the dollars paid out to settle claims and the dollars received from policyholders to pay premiums). Among his observations on auto insurance, Garamendi noted that most insurance companies are quick to submit rate filings in order to raise premiums when loss ratios increase, but when loss ratios decrease few insurance companies ever file to lower consumer premiums.

    Garamendi also stated in the introduction to his report, “…an insurance company might have a lower loss ration when it fails to reduce its rates despite decreased losses. This is especially true if it had previously raised its rates when losses increased. If such a trend surfaces, one can infer that the insurance company is overcharging its policyholders.”

    State Farm and other insurance companies make a lot of money off the premiums they charge their customers, even if some of the premiums include illegal charges like the accident surcharge. If you paid the accident surcharge when you bought a policy with State Farm Insurance, you may be eligible to join a class action lawsuit. Talk to a lawyer to discuss your options.
    Subject Posted By Posted On
    I care ??? May 9, 2007, 3:57 pm
    RE: RE: No More Bubba May 9, 2007, 3:14 pm

  • June 6, 2007 at 6:57 am
    remmber says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Comment:
    I couldn’t agree more with you. No-fault sounds great in theory, and maybe when the laws were first changed it worked the way it was supposed to. Now, those states with no-fault pay some of the highest premiums in the country. Those states that have gone away from it have seen lower premiums.

  • June 6, 2007 at 6:59 am
    yes sick1 and more says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    way policies are almost always interpreted, if for some reason a water tower tipped over and flooded your basement, that is every bit as much a flood as a so-called natural flood.

  • June 7, 2007 at 6:18 am
    LL says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Yes, flood caused by water tower tipping over is still flood. Don’t call your homeowners carrier to make a claim. Call your flood agent please. An take plenty of photos. Especially at the time of maximum coverage by water. But Flood gives you very limited coverage for basements. Sorry.

  • June 8, 2007 at 11:07 am
    Anonymous says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    It most not work on all this stuff.

  • July 13, 2007 at 11:12 am
    nicole griffin says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    r u the same janet fernandez that used 2 live in waycross georgia?



Add a Comment

Your email address will not be published. Required fields are marked *

*