Cost Of Personal Injury Protection Coverage Jumps 25 Percent
Winter Haven, Fla., May 31, 2011 State Farm Mutual Automobile Insurance Company, the largest insurer of autos in Florida and in the nation, is raising its overall rate level in Florida an average of 4.3 percent effective June 27.
Premiums for the personal injury protection (PIP) coverage are increasing 25 percent. The cost of the liability coverage is increasing to a much lesser extent (5 percent) while the price of the collision and comprehensive coverages are going down (by 7 and 8 percent, respectively).
Floridas PIP coverage, which all drivers are required to purchase, provides up to $10,000 for each insured injured in an auto accident regardless of who is at fault. Implemented in 1971, PIP is designed to protect those who are hurt in accidents and who do not have health insurance. After this rate change is implemented, the overall cost of the PIP coverage in Florida will have increased 44.5 percent in the last seven months.
Overall premium changes for individual motorists will vary depending on factors such as the coverages they carry, the discounts for which they qualify, where they live, the kind of car insured, who drives it and how much it is driven.
About one in every five cars insured in Florida is insured by State Farm.
Chris Neal, State Farm Insurance, (863) 318-4230
Michael Grimes, State Farm Insurance, (850) 577-5600
State Farm insures more cars and homes than any other insurer in the U.S., is the leading insurer of watercraft and is also a leading insurer in Canada. Our 17,800 agents and more than 66,000 employees serve 81 million policies and accounts more than 79 million auto, fire, life and health policies in the United States and Canada, and nearly 2 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 34 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com® or in Canada statefarm.ca®.