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Florida PIP Reform


For the first time in nearly 50 years, the state of Florida is moving toward repealing the no-fault auto system that requires drivers to have PIP coverage. PIP refers to personal injury protection, which pays 80% of your medical bills and/or 60% of your wage loss related to a motor vehicle accident up to a limit of $10,000.00 minus any applicable deductible up to $1,000.00.  Any reform to PIP would change the requirements of drivers. They would be required to carry bodily injury coverage, which pays for the damage to the injured party by the at-fault party’s insurance company up to the limits of this insurance coverage purchased.

The goal is to replace the state’s no-fault system in order to place liability with the at-fault driver. There is also language in the bill to help with litigation issues, clearing the way for new standards in the claims process. Florida representatives are hopeful the changes will be beneficial to both Florida insurance companies and Florida drivers. If you have questions about how these changes will impact your situation, connect with an experienced Orlando car accident lawyer.

What the Changes Mean for You

As a no-fault state, Florida motorists are able to receive up to $10,000 when the condition is an emergency. Non-emergency conditions are eligible for up to $2,500. Florida adopted this personal-injury protection (PIP) car insurance law in 1979. It was updated in 2012 to exclude some things from medical coverage, such as acupuncture and massage.

If the new law is passed during 2021’s Florida legistlative session, drivers in Florida would have to cover at least the following amounts:

  • Property damage, $10,000 in financial responsibility.
  • Negligence that leads to injury or fatality of one individual, $25,000 in coverage.
  • Negligence that leads to injury or fatality of two or more individuals, $50,000 in total coverage.
  • Updated coverage regarding commercial vehicle insurance, as well as increase in deposits.
  • Changes to pain and suffering damages, disconnecting them from bodily injury or fatalities.

Of course, there is much more to the bill than these examples. There is also a framework in place to resolve disputes when auto insurance claims fail to settle, known as bad faith claims.  Any changes to Florida’s No-Fault system is always subject to change during the upcoming session.

May Reduce Insurance Costs

One of the goals is to reduce insurance expenses for Florida residents, but there have been disputes on if this will prove to be true. For instance, the reform of PIP in 2012 led to a decline in auto premiums for a short period of time, but then the trend reversed and the rates began to rise again. Florida has a high auto premium when compared to other states. There are many factors that determine auto rates and it is unclear how the change would impact everyone in the state. For instance, auto insurance premiums are often higher in South Florida areas, such as Miami and Palm Beach, than they are in Orlando, Tampa, and other cities.

With laws changing all of the time, it is essential you work with an Orlando car accident lawyer after a Florida collision. There are many intricacies to how the law is changing and you need someone looking out for you if you were injured in a car crash.

Are you wondering how insurance law changes will impact your auto accident claim? If you have medical bills, wage loss, or pain and suffering following a motor vehicle accident contact the Orlando personal injury attorneys at Israoui Law. You deserve fair and just compensation for your loss.  Always speak to an experience auto accident injury attorney before speaking to any insurance company.  Call 407-381-4529 today. Turn to Israoui Law for the personal attention you deserve.

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