North Dakota Insurance

Floridians May to pay higher premiums auto - premiums and health - If a State does not have the right mandate fault auto insurance would end next month.

Insurers say, the transition to a wrongful act system in which the driver in an accident pay, can only benefit the consumer, because they are less fraudulent claims, reduce costs. But consumers and service providers are concerned by the fact that economies are not necessarily along insurance. And even if the car premiums, can not compensate for the reduction in coverage or cost of additional coverage auto or health-they may need.

According to the current system of accident insurance are reimbursed for the damage caused to their vehicles and all medical expenses - independently fault. They must purchase at least $ 10000 for the type of coverage an offence under body protection (PIP), which pays for medical care, rehabilitation, lost wages, and even a ceremony of mourning .

By way of comparison: in a system of offence, the driver acted negligently or is not responsible for paying the other part of medical expenses and for compensation for lost wages and pain and suffering. “There are currently 38 countries - including Colorado, which took its no-fault system repealed in July 2003 - as part of a wrongful act.

Besides Florida, Michigan, New York, New Jersey, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, Utah and Puerto Rico mandate is not in auto insurance.

The no-fault system has obvious advantages for policyholders: you should not wait until a disposition of the summer in case of error (and whose insurance is to pay). Unfortunately, the system has been badly abused in Florida. Fraudeurs scene deliberate “accidents” in which the victim “victims” are medical clinics participating in lots unnecessary claims.

The Insurance Information Institute pointed out that Florida is a system particularly vulnerable to abuse because they do not have to limit the reimbursement of costs, doctors and hospitals. He said fraudulent claims have been an important driver of higher premiums car in the country.

The Florida Department of Financial Services, said 370 victims of accidents false have been arrested since 1999. It represents the cost of fraud to requests from residents as $ 250 per family per year.

The move to a wrongful act is certainly the slaughter system to fraudulent claims and insurers say, they are these savings to consumers. State Farm, the largest auto insurer in Florida, she is a decline in average prices up to 16%, if the current law expires.

But a study led by the Actuarial Association Pinnacle Resources in March of this year, said that millions of $ 55.72 a total of $ 1.36 billion PIP total costs of medical care is anticipated that the next years would not be automatically reimbursed by insurers as part of a wrongful act. He said that only an estimate of 16.4% of these patients would be covered insurers, so that emergency medical systems, doctors, hospitals and wounded the driver on the hook for the rest for you.

The additional costs of the car or health coverage needed to fill this gap would plug $ 31.94 to $ 79.85 per year, depending on the nature of the plan purchased.