American Consumer Institute Statement Regarding Today’s PIP Rate Filings
Today, insurance companies filed new rates to cover personal injury protection (PIP), as required by Florida law. The following is a statement by Steve Pociask, president of the Institute:
“We expect mixed news about today’s PIP rate filings, since the major provisions in the new law will not take effect until January 2013. When fraud costs are finally reduced, consumers should see these benefits.
One complication, however, is the recent uptick in fraudulent activity, where some bogus clinics and trial lawyers are trying to exploit loopholes in the new law. Fortunately, law enforcement officials are developing and implementing new fraud-fighting tools that we hope will reduce the cost of fraud and bring savings to consumers.
Keep in mind that many consumers have policies that will expire over the course of next year, which means that they will not see savings until after renewing their policies. For this reason, it is important for consumers to shop around for lower rates.
Today’s rate filings are a reminder of the importance of controlling fraud and that more time is needed for the PIP legislation to fully impact rates.”
The American Consumer Institute Center for Citizen Research is a 501(c)(3) nonprofit educational and research institute. For more information, visit www.theamericanconsumer.org.