FLORIDA’S LEGISLATORS NEED TO PROTECT FLORIDIANS FROM RISING AUTO INSURANCE RATES AS WELL
There is a lot of talk and even a special session by the Florida Legislature about the need to stop the growing cost of purchasing homeowners’ insurance in Florida. There is no dispute that something needs to be done to halt the ever-increasing premiums in this arena. However, increasing insurance premiums in other areas also need to be addressed.
The cost of automobile insurance is also on the rise. The question I have is why? Are the insurance companies really suffering such great losses that Floridians need to pay more for insurance coverage? Are insurance companies really in financial trouble? The answer is NO!
According to State Farm’s own website, State Farm’s after-tax net income in 2005 was 3.24 BILLION dollars. In 2004, the after-tax net income was 5.31 BILLION dollars. This is AFTER all losses/claims have been paid out. State Farm is not alone. According to Allstate’s own website, Allstate generated net income of 1.8 BILLION dollars in 2005. Be reminded that these BILLIONS of dollars in net income was after paying claims related to three devastating hurricanes.
The insurance companies want you to think that automobile accidents raise insurance premiums. That people making claims for injuries because of an automobile accident are greedy are are causing the premiums to raise. Over 5 BILLION dollars in net income from just two insurance companies–who’s greedy??
I have had the privilege of representing hundreds of really wonderful people after they have been involved in a car accident in Florida. I have seen the stress that injuries cause on the entire family. I have seen the fear in my client’s eyes as to how they were going to support their families after injuries from a car accident prevent them from returning work. Their stress from the injuries is enough. They don’t need additional stress because the insurance company refuses to properly compensate them so the insurance companies can continue to have BILLIONS and BILLIONS of dollars in net income each year.
So, Florida legislators, do something about the rising homeowners’ insurance premiums, but then tackle the problem of increasing automobile insurance premiums!!