Florida “No-Fault” means motorists are only required to carry
Property Damage (PD) and Personal-Injury Protection (PIP) insurance – which serves as primary health insurance for an injured party’s medical bills – regardless of fault-for up to $10,000. Bodily-Injury (BI) liability insurance coverage which insurers a wrongdoer is not required in Florida.
Under a recent proposal filed by Rep. Bill Hager, R-Delray Beach, the decades-old No-Fault system, intended to make insurance claims less adversarial than lawsuits, would end in 2019.
According to Ashley Carr, Chief Financial Officer Atwater’s spokeswoman, “Ultimately, it’s a policy decision for the Legislature to make, but two years after the passage of the PIP legislation, it’s time for the insurance industry to bring forward evidence that shows whether or not rates are going to come down. If consumers aren’t going to get the relief the legislation intended, then the time to repeal has arrived.”
The limits of $10,000 in PIP medical coverage have resulted in more coverage restrictions – such as requiring insureds involved in crashes to seek treatment within 14 days, allowing up to $10,000 in benefits for emergency medical conditions, and putting a $2,500 cap on non-emergency conditions.
But while Florida Legislators debate whether to repeal or replace PIP with Bodily-Injury (BI) coverage, the law continues to draw legal challenges.
Recently, the Florida Supreme Court agreed to take up an appeal by Allstate Insurance Co. in a dispute about fees paid to health providers who treat patients injured in auto accidents – specifically whether policies were clear that Allstate would reimburse the providers under a fee schedule from the Medicare program – which includes limits on payments for services.
Whether the law will eventually fail a court challenge is yet to be seen.
Still, when purchasing car insurance, it is crucial for consumers to be aware of what type of coverage is required by law and also what kind of voluntarily coverage will best protect them individually and their families such as Bodily Injury (BI) and Uninsured Motorist (UM).
The bottom line is that a PIP insured system protects Florida’s consumers. If PIP is eliminated, the only logical alternative to provide payment for victims’ medical expenses is a mandatory Bodily Injury (BI) system that is in place in 47 other states in the United States.
Unfortunately, Representative Bill Hager’s proposal does not offer a mandatory BI alternative.
