SAN FRANCISCO, CA--(Marketwire - Oct 22, 2012) - For drivers, auto insurance remains one of the necessary costs associated with owning a car, in addition to fuel price and regular maintenance. However, automobile owners in Florida may have a chance at securing lower premiums as a result of a new auto insurance law put into effect by the state's government. A recent article from Live Insurance News covers the issue, and notes that while state officials have recently released a preliminary report that hints at significant savings, regulators believe that the plans "could be nothing more than wishful thinking." While the new law is aimed at reducing rates of insurance fraud -- a significant issue in Florida -- Kerr & Wagstaffe, a law firm in California, notes that fraud may not have as significant as an impact on rising premiums as the Florida law suggests.
According to the article, the recent preliminary report suggests that "the state's new auto insurance laws have cut the cost of no-fault auto insurance by as much as 20 percent." While there is some debate on these estimates, the article also notes that a final report issued this September may reveal different figures. In terms of policyholders, the article highlights that most should not expect savings until 2013. It states, "According to the state's new auto insurance laws, insurers are required to provide a minimum of ten percent savings on premiums unless they can justify their reasons for not doing so." Under the same stipulations, the law also reportedly requires that insurers reduce rates by as much as 25 percent by January 2014.
While these savings may be intriguing to policyholders, the regulators continue to suggest that the rates may not be as affected as much as the reports suggest, if at all. Despite the savings for consumers, the law is designed to cut rising rates of insurance fraud, which according to the article, has become a financial burden for the state. As a law firm that has successfully represented cases involving policyholder rights, Kerr & Wagstaffe responds to this justification with skepticism, noting that insurance fraud may not be as significant of a reason to make such dramatic cuts to the insurance rates. Ivo Labar, partner at Kerr & Wagstaffe, comments, "While state officials claim new laws are needed to cut down on insurance fraud, most studies show that insurance fraud is a negligible factor to justify a raise in premiums."
Kerr & Wagstaffe is a San Francisco-based law firm that is known for its bold and well-prepared legal representation. The lawyers at Kerr & Wagstaffe are active in a long list of practice areas, including intellectual property rights, patent cases and constitutional law. Together, the attorneys at Kerr & Wagstaffe have worked on a number of landmark cases, some of which have been controversial and of incredible importance within their field. Additionally, Kerr & Wagstaffe helps its clients face common legal battles with confidence.