Florida’s Auto Insurance Reform

Residents of many states are required to purchase personal injury protection (PIP) in their auto insurance policies. This coverage provides payment for medical expenses, lost wages, and other damages to the insured, passengers in the insured vehicle, and pedestrians after an accident. Some states have noticed a high incidence of fraud in the PIP claims filed by its residents. Florida is one of those states or, at least, it was before a new bill passed in March of 2012. This measure changes how PIP benefits can be used, and introduces penalties, time limits, and a new task force charged with finding the fraud in new PIP clams.

Changes Beginning July 2012

• Medical clinics that provide treatment reimbursed under PIP will be helps to more intense licensing standards.
• The long form accident report will be required in more PIP claims and a statewide anti-fraud task force will be introduced. The long form may make filing PIP claims more arduous for the average insurance customer, but it will help deter and expose fraud.
• Providers caught defrauding the Florida insurance system will be met with more penalties.

Changes Beginning January 1, 2013

• Injured individuals will have a 14 day limit to get their initial treatment after the accident.
• The severity of the injury will partially determined the benefits received. Additionally, certain medical professionals, such as physical therapists and chiropractors, will have a treatment cost limit of $2500.

The law also requires insurance companies to reduce personal injury protection premiums by at least 10% unless they file for an exemption and are approved.

It is hoped that these changes will reduce overall PIP expenses and fraud while also reducing driver insurance premiums. But the reduction to drivers’ premiums could be more substantial than just the 10 percent that insurers are required to reduce rates, because with fewer fraudulent claims, overall insurer expenses will fall and hopefully that savings will be passed on to consumers.

Don’t wait until the new regulations kick in. Give us a call at Allstar Direct Insurance & Financial Services today to see how we can reduce your Miami Auto Insurance premiums now. Then, any future reductions will just be the icing on the cake.

Miami Auto Insurance: 5 Things to do Before Buying a Used Car

Since new cars can lose more than 15 percent of their value once they are driven off the lot, buying a used car is often a smart financial decision to make. But that doesn’t mean you don’t need to do any research before making the purchase. There are five important things you should do before you sign the papers and commit to buying a used car.

1. Talk to your insurance agent. Your Miami auto insurance agent can give you some guidance in deciding which type of car would be the most affordable as far as your insurance policy is concerned. This can be based on safety features, popularity with thieves and other factors. 

2. Get a Carfax report. A used car has a secret life in the past that it can never tell you about—but that doesn’t mean you shouldn’t want to know about it. Carfax has a series of free and paid reports that will show you the history of your car with its previous owner or owners. This will help ensure that you don’t buy a lemon or a vehicle that may have been mechanically compromised in a way that is not completely corrected through repair or replacement. 

3. Compare safety options. Not only will a car with front and rear airbags, anti-lock brakes and automatic seatbelts help keep you and your family safer, it will also reduce your insurance premiums. Because used cars can be decades old, you cannot take for granted that the one you consider buying will have the safety features you want. Make sure you research what options are available in used cars of different years and different models so that you can better focus your search. 

4. Research car values. Before you spend money or get a loan for a used vehicle, make sure that you are paying a fair price based on its Kelley Blue Book value. Don’t trust that the company selling it is being completely fair; do your own research and, if necessary, get ready to haggle.

5. Take the car to your mechanic. Your mechanic can tell you whether or not a used car you are about to buy is worth purchasing or if it’s better left in the lot. He or she may charge you a small fee to give the car a look, but it would be well worth it to avoid potential repair fees beyond the basics that any used car buyer should expect.

Used cars may be a fiscally responsible choice, but it is still a big decision to make when buying one. Put the time in and do your research so you can drive off the lot with full confidence, an insurance policy you can afford, and an intact wallet.

Make sure you have the best rate for your Miami car insurance with Allstar Direct Insurance & Financial Services today!