Third Party Bad Faith Auto Claims Cost Florida $800 Million

 Friday, August 29, 2014

 Claims Journal

Florida’s third-party bad-faith lawsuit environment may have resulted in more than $800 million in additional auto liability claim payments in 2013. The industry-supported Insurance Research Council (IRC) in a new report estimates that this cost averages approximately $79 in additional claim costs for every insured vehicle in the state.According to the IRC study, Third-Party Bad-Faith in Florida’s Automobile Insurance System, Florida experienced a dramatic increase in bodily injury liability claim frequency and an overall increase of 68 percent in average claim payments per insured vehicle from 1995–2013.