Insurance regulators in Florida say that rates are going up and one of the may reasons is the lawsuits. In March, lawmakers will meat to discuss how to reduce the number of expensive courtroom battles.
One of the main proposals, which will be considered, is to put a cap on the fees attorneys receive from PIP insurance lawsuits. According to some, it is possible for an attorney to receive fees up to $100,00 for a claim of only a few thousands. Of course, insurance companies are not happy paying such high fees and increase premiums. At the end we, the motorists, are faced with paying these huge sums.
Lawyers who file PIP suits say any cap on fees will give insurers an unfair advantage in fighting the cases and create an incentive for them to deny more claims. Some argue that the insurance companies are refusing to pay or underpay way too many claims which also increases the lawsuits. It is another good point that the lawmakers should take into consideration.
Here are the shocking facts. Since 2008, Florida’s top 10 insurers have increased PIP insurance rates by more than 80%! During the same period, PIP related lawsuits have increased by over 130%!
There were discussions regarding a cap on the attorneys’ fees a few years ago, but a bill could not be passed. Seems like things are a bit different this time around.
Most people will agree that something needs to be done. PIP insurance rates in Florida must be reduced one way or the other. Lets just hope the insurance regulators in Florida implement some changes to the law soon.