The automobile insurance marketplace periodically changes coming from a “soft” target a “hard” market Car insurance quotes virginia. What is happening right now in Florida is a wonderful example. After years of the soft market as indicated by reduced rates and relaxed rules a difficult market now exists. Rates are stored on the rise and rules for qualifying are strict. Most consumers will experience a rate increase. Shopping and switching companies to keep up or lower rates could be more challenging this season for Florida drivers. Hard and soft markets periodically shift in one to the other in all of the states. Unfortunately for Florida drivers automobile experiencing a shift away from your soft market.
The primary culprit accountable for the current market in Florida is Fraud. Companies are adjusting rates and rules to make up. Personal Injury Protection (PIP) coverage will be the main target for phony claims in Florida. $10,000 on this coverage is mandatory in the state. PIP pays policyholders along with their household residents for bodily injuries after any sort of accident. Policyholders in Florida receive PIP benefits from their own policy no matter fault in a major accident. Fraud can be a contributing factor in a hard market for any state not only Florida.
Consumers can get increased underwriting (investigation) when choosing a new auto insurance policy during a difficult market. Progressive now takes a photo ID for Florida applicants to confirm identity for the PIP policy. Infinity insurance carrier will now conduct telephone calls to Florida policyholders to make sure that application information. A variety of new measures is underway by many organizations to combat fraud in the Sunshine state. Until these counter measures set out to reduce fraud the current market condition will persist.
The last hard market in Florida happened 2000 – 2001. This is often a time each time a conservative and well-informed insurer can gain share of the market from competitors. Companies that demonstrate rate stability during this hard market will probably be rewarded with new clients and retain existing ones. Consumers seeking out these companies will reduce their motor insurance cost over time.
During the very last hard market in Florida, Mercury Insurance Group was obviously a “stand out” company providing excellent value. They have provided rate stability for Florida drivers ever since and will likely grow in this market. Infinity insurance carrier is poised being prominent on this occasion. There is the best value in a difficult market for those who shop thoroughly. The two companies mentioned here would not be the only ones.
Florida drivers should expect a rate increase at their next automobile insurance renewal. Fraud associated with PIP coverage in Florida has long been problematic and is on the rise. Sensible rates from quality companies are available in a hard market for those who shop thoroughly. This basic principal applies in almost any state that you may reside.