[Tcoat]

Originally Posted by extrashaky

They do here and in most places with a no fault scheme. As I said, the insurer is prohibited by law from increasing the claimant's rates if he wasn't at fault. If the at fault driver is insured with another company, the claimant's insurer has no way to recoup their claims expense from him either.

What the claimant's insurer can do instead under state law is aggregate all their claims expenses in their annual data call submitted to the state, then use that as support to petition the department of insurance for rate increases across the board. The state rarely denies a rate increase, again because of economics. DFS is afraid that denying rate increases will cause insurers to leave Florida, restrict the kinds of policies they offer or deny coverage altogether for riskier drivers, which in turn has the effect of driving average rates up anyway.

If your rates went down when no fault went into effect, it wasn't because of no fault insurance. It was because there was something else holding your rates artificially high that was corrected at the same time. If they had fixed whatever that problem was while keeping the at fault system, your rates would be even lower today.

LOL I know I know! I have been trying to make the point that our "No fault" systems is different and actually works because it still assigns fault and is no fault in name only. They are two radically different systems and saying what they do in Florida (or other states) is meaningless. The no fault system we use does not push rates up no matter how much you want to believe it.