State Farm Looking for No-Fault to Expire

With the deadline looming for no-fault car insurance and the fact that it is about to expire, auto insurance companies within the state of Florida are hoping that it does not get renewed. They like the fact that it might expire, because no fault is currently costing the auto insurance companies more money.

State Farm has already announced that if no-fault car insurance were to expire, that they would be able to reduce rates to their customers by about 16% on average. They say that depending on type of car, where you live, driver details, etc., it should come out to around $360 a year less that a family with two cars would have to pay.

The no-fault system currently requires all drivers to carry $10,000 in personal injury protection coverage, but does not allot people to sue the other driver if they are hit and injured in an accident. If the system goes away, those that cause the accident would be responsible for injury damages and those that are injured would be able to sue to get the money they are owed.

State Farm is not the only auto insurance company looking for it to go away, there are others within the state that would like to see a change in how it is handled. They say that the system is “plagued with fraud and abuse” and are asking lawmakers not to continue it. Governor Charlie Crist has been talking about renewing it when they come back to session in June. For now, if nothing is done, it will expire in October.

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