Florida Auto Insurance Laws
Posted by: info | July 31, 2007
Florida law makers have passed an unprecedented auto insurance law. Floridians may have the choice to purchase auto insurance or not. Beginning October 1st, 2007, good drivers will not have to carry auto insurance. What does Florida consider a good driver? How will this impact auto insurance rates for drivers who choose to carry auto insurance?
Good drivers who don’t have accidents will not be required to carry auto insurance as of Oct. 1, 2007. Drivers who have an accident with no auto insurance coverage will have to start carrying auto insurance for a certain period of time.
How will this law impact insured drivers premiums? Drivers who currently or continue to carry auto insurance will most likely see an increase in rates over time. Think about the impact fraud had on rates. Rates will skyrocket and may become hard to find for protection such as uninsured and underinsured motorist coverage. Spikes to premiums will probably occur for standard liability and full coverage auto insurance as well. In fact, many agree that auto insurance will probably go up across the board.
Who will be most likely not to carry auto insurance? Think about this question for a second. Do you think wealthy, upper class people are more likely to go without insurance coverage over people who are less fortunate or live pay check to pay check? This is a no brainer, for some people who can barley pay for food, rent and utilities, these people will be less likely to pay for auto insurance.
However, if this law starts on Oct. 1st, I think that all Floridian drivers will be affected. I think people who have insurance will pay more, and drivers who need auto insurance or on the border line of poverty will decline coverage. This will cause financial disaster to many drivers in Florida.
Some auto insurance companies will likely support this law. They would be able to raise auto insurance rates to those who are more responsible and more likely to pay their bill. In addition, most insurance companies would be able to raise rates for some coverages that are not very profitable to insurance companies. To be honest, insurance companies should be able to charge more for certain coverages that put them at risk. These insurance companies will be putting much more on the line with some many uninsured drivers.
Experts already suggest that 1 out of every 4 to 5 drivers nationwide don’t carry auto insurance. Check out some of the nationwide averages for the uninsured. How much will this go up in Florida? This will surely be much higher if it isn’t against the law. Some driver without insurance even though it is required by the law. This can be potentially at all time highs for Florida if this law stays in effect.
Some citizens and others important community leaders are fighting against this law. Not all drivers and law makers are comfortable with residents not being required to purchase auto insurance. Before deciding not to purchase auto insurance in Florida, all drivers should check with their auto insurance agent, company, dmv, dot or Department of Insurance. This law will not come into effect until Oct. 1st, 2007. There can be changes or modifications to the laws between now and then. Only an agent or insurance official can inform a consumer of the current laws for your state.
This article wasn’t written by an agent in Florida and can not be used as a guide or an accurate representation of the law. You should talk with an agent of your state before making any decisions regarding your insurance policy.
Posted in: Insurance, General |
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