Controversial New Car Insurance Law Could Mean Higher Rates for Florida Drivers
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It’s no secret that Florida is one of the most expensive places to purchase car insurance.
In fact, drivers in the Sunshine State pay some of the highest premiums in the U.S. for full car insurance coverage. Just take a look at these stats courtesy of Jerry:
- Florida drivers pay about $2,300 annually for full coverage and $685 annually for minimum coverage
But it gets even more complicated. Even though car insurance rates are already high in Florida, they may actually increase even further soon, as the House is set to vote on new legislation that could change Florida law.
The current car insurance law vs. the proposed law
Florida’s current no-fault car insurance system, in place since 1971, requires all drivers to obtain personal injury insurance. In Florida, this coverage provides injured drivers up to $10,000 in immediate medical coverage, increasing speed of payment to the injured driver.
It also is meant to help avoid unnecessary lawsuits, awarding funds to the injured driver rather than waiting to determine which driver was at fault through court.
The new legislation seeks to replace this no-fault auto insurance system with a mandatory bodily injury coverage system. Currently, Florida drivers are not required to carry any bodily injury coverage, unlike most states in the country.
Florida’s new legislation would require drivers to buy mandatory limits of bodily injury and property damage liability coverage of a minimum of $25,000 and $50,000 when they register their vehicle.
How would the new car insurance law impact Florida drivers?
Under the proposed plan, low-income drivers in Florida would probably be affected the most, since they would be required to carry more insurance.
About 40% of drivers in Florida carry minimum limits that are below what the Senate is proposing. The American Property Casualty Insurance Association estimates this means that insurance rates for these drivers could increase from $165-$876 per year.
At best, the impact to all Florida drivers, should the House pass the bill, is unclear. The Tampa Bay Times reported that the Florida Senate passed the bill without an analysis on how the new policy would affect the state’s high premiums.
While advocates of the new car insurance law claim it would increase the amount of coverage on Florida’s roads, the bill may have unintended consequences.
In fact, in addition to having the highest premiums in the country, Florida also has a high rate of uninsured motorists—among the highest in the country, at one in five drivers.
So some are arguing that the new law, with its increased minimum coverage amounts, could actually lead to even fewer insured drivers on Florida’s roadways.
So how can Florida drivers save money?
Regardless if the House passes the bill or not, Jerry can help. Jerry’s free app compares quotes from up to 45 different insurance companies for you in under a minute.
Without any long forms, Jerry will send you quotes that compare to your current coverage—and as a licensed broker, it takes care of your insurance needs from start to finish. The app also monitors your car insurance rate every six months on an ongoing basis.
With Jerry, Florida drivers can rest easy knowing they are getting the best rate possible, no matter which law is in place.