Capitol Chatter: August 17

Savings questioned in new PIP law
It's hard to know what to make of all the cautions about savings in Florida's new no-fault insurance law.

The insurance industry scored a major victory this spring when the Florida Legislature reformed the law, known as PIP for personal injury protection, to rid it of fraud and sharply escalating costs. While car crashes and injuries declined from 2007-2010, PIP payouts increased 66%. In 2010, insurers paid out $1.04 for each $1 in premiums they took in even though rates have been rising 50%-70%.

So legislators changed the law to try to erase the fraudulent areas and keep costs in line for both insurance companies and consumers buying auto insurance.