December 21, 2011
By: Bruce Berry
As the new year approaches, officials in Florida are looking to reform the state's auto insurance system and reduce the size of the state-run property insurance firm.
Lawmakers say Citizens Property Insurance, which was set up as the insurer of last resort, has grown to have more policyholders than any insurance company in the state, The Associated Press reports. However, it may not be able to pay all of the claims it might receive in the event of a severe storm, which is why officials are looking to downsize it. Past efforts have fallen short.
Others are also looking to reform the state's auto insurance market, which requires drivers to have personal injury protection. However, the AP reports widespread fraud has increased premiums dramatically.
"These excessive costs are levied on those who can afford them the least," said state Representative and insurance agent Jim Boyd, according to the source. "It's costing our taxpayers and our citizens and our friends and neighbors a lot of money every year."
A recent study by the Insurance Information Institute found that Florida drivers will pay more than $650 million extra in 2011 due to fraud.
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- Thousands of St. Louis insurance claims cite recent hail damage May 22, 2012
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