Florida no-fault insurance

I took passing interest in this story in the South Florida Sun-Sentinel about the Florida Legislature considering whether to extend the state’s no-fault insurance law.  I don’t know how you folks in Florida feel about it, but when I lived in Michigan and had no-fault insurance, I hated it.  I thought my auto premiums were high when I lived in Arizona, but when I moved to Michigan, they took a big jump, and being in law school, I was trying to watch every penny.  Seems like things haven’t changed since I left. Right after I read the Florida story, I just happened to run across this story from the Detroit News about how high Michigan premiums, blamed mainly on the state’s no-fault law, have led many people to scrimp on their coverage.

7 Comments

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7 Responses to Florida no-fault insurance

  1. I’ve been here in Florida just over a year, and this state is a mess. With sheer number of auto accidents I’ve seen here, I’ve been surprised at how reasonable auto insureance is here. Right now, I haven’t any complaints about the cost of insurance, as it has been cheaper than Texas, but the big problem is the property taxes, which are about 8 or 9 times what we paid in Texas.

  2. The Florida House just ended the session and never took up PIP, meaning unless it gets brought up again in a special session, PIP will sunset October 1. Now we watch for the special session and see if it survives that (Special session in June is intended to focus on Property Tax Reform).

  3. Howard

    No-fault insurance arena is frought with fraud because insurers and authorities (e.g. dept. of insurance, law enforcement) have largely turned their backs on crackdown of fraud. Loss of no-fault will temporarily result in slight reduction of premiums, while resulting in huge permanent increases in bodily injury coverage costs, health insurance costs, and taxes. General rule of thumb…If insurance companies want it, its probably bad for the public. Insurance companies have no interest in lowering premiums. Their interest is in reducing exposure to claims. No-fault must be re-enacted or we will all pay the price.

  4. Josh

    Howard, Colorado did away with no-fault several years ago. They have seen nothing like the huge increases you’re expecting. Remember, the majority of states run without any kind of no-fault and there hasn’t been a state to adopt the system in years.
    If the system sunsets, and you’re injured in an accident through no fault of your own, you can still recover from the party at fault. But now, since a) your health carrier pays far less than PIP does for equivalent treatment and/or b) you can personally negotiate your bill down from the hospital, which PIP cannot, you stand to keep more of your liability proceeds than you currently do under PIP.
    The fraud exists because statute and case law do not allow insurers to properly investigate questionable claims, not because they are ignoring it.

  5. alan

    Josh,
    If you have an accident without PIP your health insurance (if you are lucky enough to have it) pays for it. But, if you are offered a settlement by the liability company, you will give up the whole amount back to the health insurance company because they will put a lien on your settlement.
    This is not fair. The constitution allows us to legally make a claim against an at fault party. Getting rid of PIP could infinge on your constitutional rights.
    I propose larger amounts of mandatory pip. The current amount of $10k is simply not enough for 2007. It was designed for the year 1971, when the cost of living was much less and hospital bills were much less. Now, you will go through the entire $10k in 3 hours in the ER. It’s not an expensive coverage and it serves a very important purpose.
    The real issue is that the current pip amount should be raised to reflect the current cost of healthcare. Also, the fraud problem must be fixed.

  6. charles

    PIP coverage is the most ridiculous outdated concept because our society expects someone else to pay their damages anyway. We live in a country plagued with everybody pointing to someone else to be responsible for damage so let it actually all go to the at fault party and forget about covering damage done to you by somebody else. I dont want to pay for anyone elses actions especially in our irresponsible country where accidents turn into ATM machines spewing out cash to openly willing hands.

  7. scott

    as of now there is no mandatory insurance beginning oct 1 liab also sunsets