Florida Cabinet Members Disagree With Proposed Auto Insurance Rule

On Wednesday, May 13, Florida Cabinet members refused to stop auto insurance companies from charging new policy holders higher rates if they have been in not at fault accidents.

Industry representatives say that charges for new customers with accidents on their driving record is a common practice, even if the customer didn’t cause the accident. They say it’s justified because research shows these drivers are at higher risk of filing claims and it’s often difficult to determine who is at fault for the accident. Auto insurance companies need to consider all facets of the driving record to understand the customer’s risk and charge the most appropriate rates.

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