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No-Fault Auto Insurance Could Be Ending in Florida

Florida State Representative Bill Hager – a Republican from Delray Beach, only a little ways south of Stuart – has proposed House Bill 997 in early December 2015. The bill calls for the dismantling of the state’s mandatory personal-injury protection (PIP) auto insurance system, more commonly known as “no-fault” insurance, by 2019. Representative Hager and supporters of the bill argue that PIP insurance is ineffective. They even go as far as to say that the system itself is full of fraudulent activity. Over in the Senate, Florida State Senator Jeff Brandes has pushed Senate Bill 1112, which is virtually a mirror to the house bill.

Just what is no-fault insurance and why are they combatting it? In a state that requires no-fault PIP auto insurance – only a couple other states do – every driver is required to purchase insurance that will give funds for medical benefits to injured parties in event of a crash. In Florida, the amount per person is $10,000.

The problem that lawmakers are citing is that that money needs to be provided, regardless of who is liable for the accident. It is argued that fraudsters can use this system to not only collect money through accidents they cause, but to also allow dishonest insurance providers to hike up their own rates.

How this will affect the average motorist in Florida is not yet known. The idea is that removing the system should reduce rates, but will it also cause more complications in car accident claims? Follow the blog of Stuart Personal Injury Attorney Lauri J. Goldstein of Lauri J. Goldstein & Associates, PLLC for relevant updates to this story. You can also call the firm at 866-675-4427 if you need help with a personal injury case – we are available for emergencies!