Bolt Access Logo

"

Over the last several years, Florida residents have faced an extremely difficult situation in terms of what they pay for their insurance coverage across the board. Between high rates for home insurance and auto coverage, in addition to other policies, costs have been so high for the average resident that it's become an issue in the state's political sphere. As more experts are saying something needs to be done about these prices on a regulatory level, it might also be wise for agents to do all they can to explain the situation to their clients and help them find as much wiggle room for their costs as possible.

Auto insurance has been an issue for millions of Floridians in recent years, with consumers paying more than $3.5 billion annually for the state's mandated Personal Injury Protection coverage, according to an editorial from the Orlando Sentinel calling for more government effort to reduce these costs. In all, PIP coverage can add as much as 25 percent to a policy's premiums.

Why is PIP a problem?
The fact of the matter is that PIP insurance actually ends up costing consumers and insurers alike a lot of money because it's so easy to defraud, the report said. In all, scammers are able to rip off insurers through this kind of coverage for as much as $1 billion per year. As recently as 2012, lawmakers made their ninth attempt to reform the program, but while it's believed that the latest round of changes to the law saved insurers $2 billion, it seems those savings were not passed along to consumers.

""There's got to be a better way,"" Sen. David Simmons, the Altamonte Springs Republican who chairs his chamber's Banking and Insurance Committee, said recently, according to the newspaper. ""And there are solutions.""

Insurance agents sometimes have a difficult task when it comes to keeping consumers who are worried about their ongoing costs satisfied that everything else with their coverage is as good as it should be. However, polls have shown that the key in this regard is often as simple as maintaining a positive relationship with those people. This is the case even more so than with simply being able to provide significant ongoing discounts, but striking a balance between a strong understanding and the occasional price reduction is often the best course of action for agents.

"

Talk to an expert

Contact us