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Auto insurance costs have been a huge point of contention for consumers in many parts of the country, but nowhere is this likely to be more prevalent than in states that have no-fault coverage built into the systems. For these reasons, drivers may end up paying hundreds of dollars more per year than they probably should have had to. These systems are often criticized as unnecessarily driving up those prices, but it might be incumbent upon state legislatures to change them. Until that happens, it could be important for insurance agents to explain to consumers why they pay as much as they do for auto insurance, and what they might be able to do to reduce their costs in other ways until these issues are sorted out.

Florida is one such state where no-fault insurance adds significant costs to consumers' auto coverage bills every year, and one that has once again grown to a point of contention for many within its borders, according to a report from the Palm Beach Post. That includes a type of coverage known as Personal Injury Protection (or PIP), which critics have often said makes the system very vulnerable to fraud.

One state that Florida could mimic here might be Colorado, which dropped its own no-fault insurance system in 2003, the report said. By 2008, premiums had fallen some 35 percent overall.

Is anything being done?
In the past, Florida lawmakers have attempted to overhaul the PIP system to reduce the risk of fraud, the report said. However, it seems that the impact in this regard was minimal, as residents continue to pay high prices, even as fraud has notably declined over the past two years or so. For this reason, some believe that lawmakers need to revisit these reforms and come up with more significant changes to help residents.

Insurance agents who can convey to consumers the various reasons for all aspects of their auto insurance costs will likely be the ones who have the best ongoing relationships with those consumers. The ability to provide high-quality customer service whenever a certain issue comes up is often valued more highly by clients than even the ability to add certain discounts to a policy. And, as such, striking the right balance between these two issues will often go a long way toward keeping retention numbers as high as possible.

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