Florida PIP Repeal

If you’ve been paying attention then you already know the Florida PIP repeal was well underway earlier this year. The bill aims to remove the limitation on tort liability, thus holding the at-fault driver entirely liable for any accident-related charges.

This is not the first time a reform bill has been presented. Just last year a similar bill was voted 81-29 by the House but failed to reach a vote in the Senate. It seems only fitting that insurers, doctors, and emergency room providers voice their opposition to doing away with PIP. PIP provides medical-payments coverage that providers depend on for accident-related medical expenses.

Florida PIP Repeal in the Florida House

As it stands, the House Commerce Committee voted 18-7 in support of the Florida PIP repeal, a measure (HB 19) sponsored by Rep. Erin Grall, R-Vero Beach. This would effectively end the no-fault auto insurance system in the state. Drivers would need to obtain bodily-injury coverage in its place. It’s important to mention that almost all states require this coverage, and many Florida drivers already have it. The next stop for this measure is the House floor in January 2018.

What would this mean for Floridians?

Currently, Florida is only one of two states that don’t require bodily-injury liability coverage. Personal injury protection was intended to lower premiums but instead, the exact opposite occurred. Premiums increased by a 25 percent average, leaving Florida drivers to foot the bill for one of the priciest car insurance premiums in the country.

High-risk drivers never have to accept responsibility and safe drivers are penalized. To add insult to injury bad-faith lawsuits attract dubious individuals, who then crash their vehicle in an attempt to cheat the system with a fraudulent claim that may exceed the coverage obtained by the insured. Many groups would like to reform the bad faith laws, blaming them for driving up insurance rates.

What does this mean for Floridians if the Florida PIP repeal passes? For starters, all drivers would be required to carry bodily injury coverage. The at-fault driver would be held entirely liable for any damages up to $25,000 for injury or death of one and $50,000 for two or more individuals. Instead of providing PIP coverage documents at the time of registering or renewing your motor vehicle, BI would be necessary.

Florida drivers would have until January 1, 2019, to transition from a plan with PIP to meet the BI requirements. The insurers must provide notification of this change to the policyholders by September 1, 2018, which would give policyholders ample time to prepare their policies.

Count on E&L Insurance

In states that have gotten rid of no-fault systems, car insurance policy holders saw extensive savings on auto insurance premiums. While there is no guarantee the HB 19 is going to pass the House, one can only cross their fingers and remain hopeful the Florida PIP repeal is approved. E&L Insurance is a highly regarded independent insurance agent that is always here to help find the right auto insurance coverage you need. To speak with a representative, give us a call at (888) 700-4049, today!