A preliminary report shows Florida’s new auto insurance reform law will actually save policy holders some cash. But, those projected savings could still depend on factors outside the scope of the law.
The first draft of the independent report, commissioned by the Florida Legislature, was released on Friday. It's still missing much data, but right now, it predicts the law will cut down on personal injury fraud and pass along savings of up to 20 percent to customers over the next three years. The final report won’t be submitted until mid-September. Monte Stevens, of the Florida Office of Insurance Regulation, says predictions could change if people find new ways to commit fraud. And, parts of the law might get thrown out altogether.
“Many of these provisions are likely to be challenged, and depending on how courts rule about a particular provision or numerous provisions in the bill, there could be costs associated," he says.
Lawmakers who voted for the measure say, insurers should be able to lower rates because they’ll see a reduction in fraudulent claims. The earliest that personal-injury policy-holders could see any new rates kick in is after January 1.