Since the 1970s, Florida has participated in a no-fault auto insurance system. Since then, numerous lawmakers have attempted to update and change the way our state handles car insurance, and as of August 16, a new bill has been filed to attempt to do that… again.
SB 150 was filed by Senator Tom Lee, R-Thonotosassa to repeal the current no-fault system during the 2018 Legislature. As it stands right now, Florida drivers are required to carry $10,000 in personal injury protection (PIP) coverage. Under Lee’s proposed bill, motorists would need to carry bodily injury and medical payment coverage instead of PIP coverage.
So, What’s Wrong with the Current System?…
We’ve mentioned in past blog posts that Florida may be trying to end personal injury protection (PIP) for good. Less than half of the United States offers some form of PIP, and only 13 states have mandatory PIP coverage for drivers.
If some lawmakers in our state have their way, Florida may not be one of those states for long. And you might end up thanking them. Because it is a change that could save you hundreds of dollars a year.
Here’s where things stand right now:
Changes to PIP Law Have Already Begun… Sort Of. The process to change and possibly eliminate PIP has already started. In 2012, HB119 was passed in Florida to reduce insurance fraud through a few different changes.…
Last week, a $125,000 contract was awarded to an actuarial consulting firm to study and predict what would happen if personal injury protection (PIP) was removed from Florida’s state laws. The study was proposed by the Office of Insurance Regulation, and will begin shortly. In September, the results will be presented to Florida Governor Rick Scott, the Senate president, and the House Speaker.
What does this mean? Will PIP end? What might happen if this occurs? To delve into the issue, first we have to look at PIP itself.
What Is Personal Injury Protection?
Personal injury protection (PIP) coverage is another name for Florida’s “no-fault” insurance system. We are one of a dozen states that have no-fault auto insurance laws.…
In most other states, when you get into a car accident, one of the drivers is determined to be “at-fault.” Our state, however, is a “no-fault” state where the other driver cannot be held responsible for injuries that you incur from the accident unless those injuries are serious enough to meet Florida’s “injury threshold.” Before we get into that, though, it is important to talk about injuries that do not meet this threshold, because far too many simply do not, even though costs for victims frequently end up exceeding what insurance will cover.
Here is how our system works when someone doesn’t meet Florida’s injury threshold:
Two people get into an accident.…Read more