Some of the largest providers of automobile insurance in Florida have filed for rate decreases in their personal injury protection rates of as much as 10 percent in the first major sign that the PIP reforms passed by lawmakers earlier this year are having their intended effect.
As part of a comprehensive rewrite of Florida’s PIP law earlier this year, lawmakers required all auto insurers to make a filing as of October 1, reflecting a 10 percent reduction in the PIP portion of their rates or provide a detailed reason why it is unable to do so.
To date, regulators have received 134 individual rate filing from 147 insurers, some of which represent multiple companies. Several of Florida’s major auto insurers have filed for PIP decreases. However, a few have filed for increases, although the magnitudes of the rate hikes has been mitigated by the PIP reforms.
The rate changes will go into effect and stay in effect unless state regulators disapprove them within the next 60 days.
State Farm Mutual Insurance Co., the state’s largest auto insurer with 19.9 percent of the market, filed for a 7.9 percent PIP rate increase as part of an overall auto increase of 22 percent. GEICO, the state’s second largest auto insurer, filed for an average 10 percent PIP reduction that applies to each of the three GEICO companies that do business in the state.
Two Progressive Insurance companies filed for an average 6 percent decrease. Allstate Fire & Casualty had an 11.2 percent PIP indicated rate need but filed for no change. Allstate Property & Casualty Co. filed for a 5.8 percent decrease.
These rate filings released by regulators are in addition to seven PIP rate filings that have already been approved.
The Florida Farm Bureau Insurance Co. requested an eight percent increase in PIP rates as opposed to the 45 percent they otherwise would have filed. MGA Insurance Companies, both for its renewal program and personal auto program, requested a 3.9 percent increase in its PIP rates as compare to an average 15 percent increase. Agency Insurance Co. reduced its rate request from plus 60.9 percent to 26.3 percent.
Three smaller companies did receive PIP rate decreases including, United Fire and Casualty Co., for 15.2 percent, Hartford Insurance Co. of the Midwest’s renewal program for 4.7 percent, and Philadelphia Indemnity Insurance Co. for a 10 percent rate reduction for its collector vehicle program.
Regulators said that it could take some time before the filings are finalized. Under Florida law, insurers may use a
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