Florida's top regulator says auto insurance fix is lowering premiums


Published: Wednesday, January 22, 2014 at 1:12 p.m.
Last Modified: Thursday, January 23, 2014 at 1:24 p.m.

TALLAHASSEE — Florida's top insurance regulator says a contentious fix to auto insurance laws is driving down premiums.

Insurance Commissioner Kevin McCarty said Wednesday that a preliminary analysis shows a 13 percent decrease in no-fault Personal Injury Protection rates since legislators changed the law in 2012. Overall auto insurance premiums for the state's top 20 companies have gone down 1.2 percent so far.

Florida legislators passed the state's no-fault insurance law in the early 1970s. The law provides that a driver's insurance company pay up to $10,000.

But over the years authorities contend the state became a leading state for staged accidents.

The 2012 law put limits on coverage, but it has been challenged in court. It was predicted the changes would eventually drive down PIP rates by 25 percent.

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