Implications of COVID-19 on Florida Car Insurance

The COVID-19 pandemic has uprooted the lives of most Americans in Florida and across the United States. Employers, educational institutions, retailers, and almost every other industry has made changes to the way they operate. As a result, Florida drivers are typically only venturing out for mandatory travel or essential supplies. This has led to insurance companies experiencing a decrease in Florida car accident claims and higher profits.

According to an industry news source, in response to the COVID-19 pandemic, the Consumer Federation of America and the Center for Economic Justice, issued a statement advising automobile insurance companies to provide their policyholders with premium relief. The agencies issued this advisory to help individuals who are facing financial difficulties because of an income reduction during this time. Insurance companies are using their discretion to determine whether they will take steps to issue refunds of policyholder’s premiums or provide them with another benefit. The Insurance Information Institute has stated that insurance companies will be returning nearly $10 billion to customers across the United States. However, because this is not a mandatory call to action, insurance companies have the choice as to whether they will reduce insurance rates or return premiums.

There are several different ways that Florida insurance companies are responding to this advisory. The most common actions that insurance companies are taking are reducing premiums, waiving late fees, and issuing discounts. These reductions include, multi-vehicle discounts, multi-vehicle discounts, safe driver discounts, occupation-related discounts, and professional association membership discounts.

Insurance companies are generally only waiving or suspending coverage in instances where the driver is not using their vehicle at all. For example, many Floridians only remain in the state seasonally, and insurance companies may suspend coverage for the time that they are out-of-state. Suspending or canceling car insurance is a risky step to take, and Florida motorists must understand the implications of doing so. Canceling car insurance can have severe consequences for a motorist. First, Florida requires motorists to have car insurance, and if motorists do not carry the necessary amount of coverage, they may face significant fines, driving restrictions, and even jail time. Next, insurance companies may increase a driver’s premiums when they restart their coverage. Finally, motorists may incur fines and other costs associated with canceling their coverage. Floridians who are facing financial difficulties paying their car insurance should contact their insurance company to discuss potential solutions.

Contact a Florida Car Accident Attorney

If you or someone you know has suffered injuries in a Florida car accident, contact the attorneys at Friedman, Rodman & Frank, P.A. The attorneys at our law firm understand the life-changing impact that COVID-19 has had on Floridians. Many individuals are facing more challenges recovering for their injuries and damages against negligent parties and insurance companies, and we are working to ensure that they receive the compensation they deserve. Compensation in personal injury cases often includes payments for bodily injury, lost wages, and pain, and suffering. Our attorneys possess the unique skills and experience to adjust to the growing changes that Florida injury victims are suffering. Contact our office at 877-448-8585 to schedule a free initial consultation with an attorney at our law firm.

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