State Farm Takes Sides in Florida Debate - Promises Savings if State Drops ‘No-Fault’

Florida is one of 12 states with no-fault car insurance, but as the current law is about to expire, citizens, businesses, and legislators are all debating whether or not to reauthorize no-fault, or return to traditional, at-fault car insurance. State Farm has long supported repealing no-fault laws within the state, and now the car insurance leader is putting its money where it's mouth is - promising to cut the average Florida motorists' car insurance rates by a staggering 16 percent if no-fault is abolished!

Dinner for Two at the Olive Garden

The average Floridian currently spends about $2,250 to insure two vehicles - these are among the most expensive rates in the nation. At 16% savings, State Farm is promising its customers $360 in annual savings; $30 a month. Basically, State Farm is offering to treat its customers to dinner for two at the Olive Garden each month if no-fault is dropped. State Farm is hoping that this "incentive" will push more Floridians to contact their state legislators and ask them to let no-fault expire and be replaced by a traditional at-fault system. But will motorists really save?

If it were simply an issue of getting $30 a month in return for nothing, then every Floridian - even those who don't like the Olive Garden - would clearly be on State Farm's side. But we know that when something's too good to be true, it normally is. There is a cost associated with dropping no-fault. The question is, does $30 a month in reduced car insurance rates make up for what will be lost if no-fault goes the way of the dinosaurs?

$30 a Month or $200 an Hour - The Olive Garden vs. Lawyers' Fees

The entire point behind no-fault car insurance is that it lessens the number of lawsuits. With at-fault insurance, "fault" - i.e. who caused the accident - must be determined. Normally, car insurance companies work this out between themselves, but when they can't agree, they go to court. Court is not only costly, but it also delays the payment of claims until the jury reaches a verdict - or even longer. Car insurance companies can appeal, refuse to pay, etc.

So with at-fault insurance, Floridians will save $30 a month. But if they're in an accident in which the fault is not clearly evident, those $30 monthly savings will erode pretty quickly. Of course, while everyone will save under at-fault, not everyone will get in an accident, and not everyone who gets in an accident will wind up in court. People need to decide for themselves which side of this debate they want to be on, and once fully informed of the pros and cons of no-fault vs. at-fault, they should contact their state legislators and tell them how they feel.

Treat Yourself to the Olive Garden - With or Without a New Law

Of course, you could save $30 a month or more - regardless of what the legislators do - by taking an active role in your car insurance. First, understand your current coverage - this is easy to do with the wealth of resources available at carinsurancerates.com. Then, shop around for better rates using the "Start A Quote" option in the upper left corner. Many times, customers are able to both save and improve their coverage. What do you have to lose?