FSRA recently announced the 2023 deductibles for general damage awards and Family Law Act damages awards in auto claims.
The Insurance Act and its regulations delegate the authority to FSRA to update the deductibles on an annual basis. The increase is tied to the change in the Consumer Price Index. Because of the high levels of inflation over the past year, the 2023 deductibles increased by 6.9 percent over the 2022 deductibles.
The new deductibles for 2023 are:
- General Damages – $44,367.24 (increased from $41,503.50)
- FLA s. 61(2) Damages – $22,183.63 (increased from $20,751.76)
The value at which the deductible no longer apply (sometimes called the “vanishing deductible limit”) for 2023 are:
- General Damages – $147,889.59 (increased from $138,343.86)
- FLA s. 61(2) Damages – $73,944.18 (increased from $69,171.36)
The updated deductibles will be welcome news for insurers, particularly in light of rising damages awards and social inflation.