Can new personal injury protection law lower car insurance rates?

Lawmakers in Tallahassee Florida are hoping that a new law taken into effect on January 1, 2015 will be able to make auto insurance premiums decrease. Can this really happen? The law was suggested due to the rise in fake claims that have seemed to jump greatly in 2008.

This new law is focused on stopping fraud, but opposers say that it really only cheats the customer. Criminals can so easily fake injuries and state crashes, which is the main cause of the premiums to increasing. Bryan Nelson is the chair of the insurance committee and he is also a local insurance agent. He claims that the changes in such things as personal injury protection, no matter whose fault is in a crash, will help to discourage the fakes.

The new law will allow a maximum of $10,000 to be paid for emergency room treatment. In a non-emergency treatment, the amount allowed is only $2,500. Treatment has to sought in a 14 day period from the time of the accident and this does not include massage or acupuncture.

Some attorneys say that customers are not really getting what they pay for, but Nelson claims that all injured patients will continue to be covered. Insurance companies are going to be required to lower their premiums. They are, however, able to petition to be excluded from this reduction, but that leaves drivers unsure if their rates will go down or not. Hospitals have also put their two cents in claiming that the new law will only make it more difficult for them to collect their fees from patients and be able to cover emergency treatment after accidents. Despite the arguments from the insurance companies and hospitals, this law is a real good one.

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