Friday, 08 September 2017 21:30

Florida Car Dealers Say Insurers Halting Policies Ahead of Irma

Written by Gabrielle Coppola and Jamie Butters, Bloomberg

Insurers including Progressive Corp. and Allstate Corp. have stopped issuing policies on new cars in certain Florida counties, hindering vehicle sales days before Hurricane Irma is forecast to hit the state.

The companies may be overreacting to losses incurred last month related to Hurricane Harvey and refusing to issue coverage, Ted Smith, the president of the Florida Automobile Dealers Association, said by phone. State Farm Mutual Automobile Insurance Co. is still issuing coverage and waiting until a national hurricane advisory before halting new policies, he said.

 

“If you take us out of business for a week before a storm even hits and maybe a week after, you can imagine the impact, not just on consumers who are inconvenienced, but the state’s economic resources,” Smith said. “I’m urging through our public officials that they talk to these insurance companies and make sure they follow the policy of State Farm -- wait until there’s imminent danger before you stop writing cars.”


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