Motor Vehicle Insurance Rates Determination by Zip Codes
Impact
If passed, this legislation would require a comprehensive examination of the factors influencing insurance premiums in different regions of Florida. By analyzing how insurance rates vary by zip code, particularly in smaller municipalities, the findings could reveal significant disparities and inform potential adjustments to the regulatory framework governing insurance companies and their rate-setting processes. It is intended to enhance consumer protection by aiming for fairer pricing structures across different geographic areas.
Summary
House Bill 0921 proposes a study to analyze motor vehicle insurance rates as determined by zip code, particularly focusing on municipalities with small populations within metropolitan areas. The bill mandates the Department of Financial Services to contract with a Florida public university to conduct this study. Aimed at evaluating if changing zip code designations can result in lower insurance rates for specific municipalities, such as Miami Lakes, the study seeks to provide insights that can inform future legislative actions concerning motor vehicle insurance in Florida.
Contention
The bill could spark discussions regarding the fairness of insurance rate determinations. While proponents may champion the potential for lower rates in historically overcharged areas, critics might argue that focusing on zip code distinctions could overlook other relevant factors such as individual driving records and vehicle types. Furthermore, there may be apprehensions about whether such findings will equally benefit all communities or merely shift the burden onto other areas, thus exacerbating existing inequities in motor vehicle insurance pricing.
Forbids a motor vehicle liability insurance carrier from considering the zip code of where an insured lives for purposes of calculating their policy premium.