Florida lawmakers are slated to begin considering whether to repeal the state’s long-standing no-fault auto insurance requirement. On average, this additional protection costs drivers about $81 per policy, according to recent research. The question legislators have to decide is whether those savings are going to be worth it in the end due to the fact that it will likely result in an uptick of car accident lawsuits.
The no-fault insurance for motor vehicles allows that there is “no-fault” when it comes to paying out an auto insurance claim following a car accident under a certain amount. Instead, drivers are required to carry personal injury protection (PIP) coverage, which extends payment for any medical expenses and certain non-medical costs associated with the crash, such as lost wages or replacement benefits (i.e., having someone come help you clean your house while you are unable to do so). All Florida drivers are required to carry a minimum level of PIP benefits in addition to liability insurance requirements. Then if they are involved in a crash, they file a claim with their own auto insurer. The only way they can pursue a claim outside that no-fault system is if the injuries are considered permanent or permanently disfiguring/ scarring or if there is some significant or total loss of an important bodily function. Drivers have to carry at least $10,000 in PIP benefits.
Legislators have decided that in the spring, they will mull a proposal to scrap the no-fault insurance law that has been followed in the state since the 1970s. Continue reading