TALLAHASSEE, Fla.- The Property Casualty Insurers Association of America (PCI) points to a new report from the Insurance Research Council (IRC) to highlight how much more policyholders are paying for insurance due to unnecessary bad faith litigation. The following statement can be attributed to Logan McFaddin, PCI regional manager.
“This study demonstrates the need for bad faith reform. Florida continues to be the worst state in the country for bad faith litigation abuse. Frivolous lawsuits, often targeting automobile insurers, create unnecessary expenses that place a heavy burden on consumers. The study points to Florida’s legal environment being responsible for an average of $106 in additional claims cost for every insured vehicle in 2017. Meaning if you have two vehicles, the additional cost would be more than $200 per household. Since 2006, this type of abuse has resulted in $7.6 billion in additional costs for policyholders.
“It’s clear we need to look for a legislative answer that protects the public and prevents needless lawsuits from being filed by third parties looking to make money off consumers. Now is the time to start looking for a solution that potentially shields Floridians from higher insurance costs, combats abuse, and prevents lawsuits from clogging up the court system.
“As we approach the 2019 legislative session, PCI will work with lawmakers on common sense reforms to ensure fairness in the Florida legal system.”