No-Fault Auto Insurance Reform Bill Advances in Fla. House

High premiums statewide have been attributed to fraud and abuse. In order to find the best rates for coverage in this environment, Floridians can use sites like to comparison shop.

Online PR News – 23-March-2011 – – According to the Insurance Information Institute (III), fraud in the Florida no-fault system is costing insurers in the state huge sums of money, and the amount “is rising by 70 percent each year.”

Problems in the no-fault system—which uses first-party coverage that pays directly to the policyholder for bodily injury damages regardless of fault—are not new; abuse issues sparked three legislative reforms to the system between 2001 and 2008. Now, a bill circulating through House committees aims to further adjust the claims process in order to close up loopholes that are still plaguing the system.

One of the largest problems with the no-fault system is the inflation of claims sizes. When you compare auto insurance in Florida, in terms of average claim sizes, to other no-fault states, it ranks fourth out of 12, according to the III. To combat this issue, the new legislation will set a fee schedule for more types of services that are commonly rendered in treated car accident victims.

Other key points of the insurance reform legislation includes a cap on attorneys’ fees, the option for insurers to make arbitration the main method of settling disputes with policyholders and a provision that would make a reasonable request for examination under oath about a claim to be a necessity for claims payment.


To learn more about this and other Florida car insurance issues, readers can go to target="_blank" class="highlight_link"> where they will find informative resource pages and a quote-comparison generator that can help consumers in Florida or any state find the best rates for coverage.

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