Our View: Reform auto insurance to cut costs.

With Florida having a new insurance commissioner, it’s time to take a new look at auto insurance.

That begins with abolishing the state’s no-fault system for minor crashes. All drivers must buy $10,000 of Personal Injury SPoroutetc h tioF n locorviedragS e, uenven if their policy includes other coverage Stheant tmiingehlt apply. PIP makes up roughly 25 percent of the average premium. For most Floridians, its cost has been rising, even if they haven’t filed a claim.

Last month, Gov. Rick Scott and the Florida Cabinet promoted David Altmaier to replace his boss, outgoing Commissioner Kevin McCarty, who also raised the idea of ending PIP. Altmaier knows the issue. He had been in charge of property and casualty insurance.

This month, the Office of Insurance Regulation announced a $125,000 study that would explore the effects of replacing PIP with varying levels of bodily injury coverage, or even repealing the requirement to purchase auto insurance altogether. Results are due in early September, leaving plenty of time to draft bills for the 2017 session.

Florida began no-fault in 1972 with the right idea. People injured in crashes, whether at fault or not, would get money quickly, especially helping those who live paycheck to paycheck. In return, the injured would have less incentive to file lawsuits. Courts would not get clogged and premiums would decrease.

This being Florida, good intentions were no match for fraudsters and special interests. People gamed the system from the start. The Legislature responded with regular changes to the no-fault law, but in 2000 a statewide grand jury revealed rampant PIP fraud. Scam artists would stage fake accidents and use bogus clinics to bill insurance companies the $10,000 limit. They still do.

After another decade of minor changes to the law, a serious reform effort built in 2012. Sen. Joe Negron, R-Stuart, sponsored legislation he estimated would cut more than $1 billion in expenses for insurance companies. In return, Negron wanted insurers to pass along savings to customers. His bill included mandatory price cuts. It was a fair trade.

On the Senate floor, however, ducks from all sides pecked at Negron’s bill. Democrats, on behalf of trial lawyers, claimed the changes would be unfair to crash victims. Republicans, on behalf of insurance companies, objected to supposed interference with the free market and wanted a tougher crackdown on fraud. Scott opposed the mandatory price cuts.

What remained was a bill that gave insurers all those savings and only set targets for premium decreases. Even then, insurers could avoid the targets with an explanation.

The Office of Insurance Regulation study will examine the law’s effects. Almost certainly, it will show rates have not dropped as promised. Florida Chief Financial Officer Jeff Atwater reached that conclusion six months ago and called for repeal of PIP.

Whatever emerges as the best replacement, the Legislature can’t wait another year. For income-pinched Floridians, the cost of auto and homeowner insurance grows. With the rare exception of a bill this year forcing life insurers to seek out all beneficiaries, the industry usually prevails. Companies seek to cover less and charge more. The Legislature goes along.

As a former Senate president, Atwater could provide much leadership on auto insurance reform. In addition, Negron will be Senate president next year. We hope for a session in which real help for Florida motorists gets into overdrive.