Does an Increase in State Minimum Liability Lead to Higher Uninsured Motorist Rates?

[BlockO]

I'm sure someone has seen statistics on this. When a state raises it's minimum liability requirement, does it cause a spike in the percentage of uninsured motorists?

Also, for agents who have been through an increase, how much does it shake up the non-standard market?

 

[BlockO]

that's a good question...
have tried getting quotes im sure you can get a answer....matter of fact try this number there awesome
1-888-298-2731 hope this helps

Thanks! I'm overwhelmed by your helpfulness!

 

[Justin Bilyj]

We haven't noticed anyone dropping coverage because of the new limit increase in Ohio, and we cater to Lorain (highest crime city in Ohio, low income).

 

[BlockO]

We haven't noticed anyone dropping coverage because of the new limit increase in Ohio, and we cater to Lorain (highest crime city in Ohio, low income).

I think it's too early to see any changes in Ohio yet. Ohio's change doesn't go into effect until next month. Dec. 22 is what my carriers are telling me.

Thing about Ohio is those FR Bonds. Ohio is the only state that has them, and there are a lot of them! (basically anyone who needs an SR22 and don't own a car, or a person who owns like 10 cars). That's why I asked how much a change shakes up the non-standard market.

 

[djs]

Not sure it would be that noticable. Never been through it, since CA is still 15/30/5, which is abysmal. Rating wise though, increasing liability usually doesn't cost much, so it probably won't cause any noticeable change in uninsured motorist.

I could be wrong, likely am, I just don't see it having a huge impact.

If it makes policies go up more than $10 a month, I take back what I just said.

Dan

 

[USF3983]

Florida might be toying with the idea of getting rid of PIP and increasing the minimum from 10/20/10.

The fraud has been rampant here, so much so, that I think I've seen it on the national news.

 

[BlockO]

The fraud has been rampant here, so much so, that I think I've seen it on the national news.

Just about any no-fault state is having second thoughts. Michigan's governor has mentioned overhauling the whole system. It's not just the out right fraud, but also the "soft fraud" as well (doctors padding the bill).

what concerns me is that Ohio seems to have a proportionally higher level of motorist carrying state minimum compared to other states. FRB's have a lot to do with that.

 

[USF3983]

Yeah, soft fraud has been a big issue here too. As far as I know, Michigan was a funky unlimited PIP clause.

Not too long ago, Tampa (where I'm located) was #2 in the country for staged accidents with Miami and Orlando taking up spots in the top 5 as well.

It's been quite a unique experience in my only 7 years of experience. I'd say 6 of them have been spent dealing with PIP fraud beyond what has been normal. We had AIG Auto which went belly up and terminated all of our single car policies, and then the rest of the book. Increasing rates multiple times a year, restricting writing policies with 1 household PIP claim, and crazy high rates. It's been crazy, lol.


PIP premium accounts for a lot of our book though so hopefully if they get rid of PIP, it will be gradual or something to that affect. My agent would have to cut hours until he can recover from a drastic reduction.

 

[BlockO]

Not too long ago, Tampa (where I'm located) was #2 in the country for staged accidents with Miami and Orlando taking up spots in the top 5 as well.

sorry to get off topic here, but do you recall which city was #1? I'm wondering if it wasn't a city in Massachusetts.

There was a huge staged accident fraud ring who operated like clockwork in MA for a long time. One of the participants (who rode in the vehicle and faked injuries) talked his grandmother into participating in the scheme......

One particular staged accident proved to be more of an impact than planned, and grandma died of injuries as a result. That's when the whole thing fell apart. People got scared and spilled the beans.

Had this accidently-on-purpose-turned-accident not happened, the ringleaders might still be in operation today.

 

[USF3983]

I know Massachusetts has their own problems with how the laws are written. I think that's the only state Progressive doesn't operate in, lol.

It was Brooklyn, NY (which isn't even the whole city, lol). Los Angeles was like #3 or #4. That was a few years ago. I'm not sure what it is now.

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Here's something more recent than what I saw last from 2011 that PolitiFact said was "mostly true." lol

The top five states that generated the most "staged accident QCs," or questionable claims, were: (1) Florida, 3,006; (2) New York, 1,680; (3) California, 1,619; (4) Texas, 792; and (5) Illinois, 433.

The five cities that saw the "most staged accident QCs" were: (1) New York, 1,304; (2) Tampa, 562; (3) Miami, 511 (4) Orlando, 422; and (5) Houston, 376.