February 11, 2012
/24-7PressRelease/ -- Florida Personal Injury Protection Insurance Reform May Pass in 2012
Floridian motor-vehicle owners have several types of auto insurance options from which to choose in varied amounts of coverage. At a minimum, however, Florida law requires personal injury protection insurance, or PIP, to cover $10,000 worth of personal injury you or your family may suffer in a car crash. Florida law also requires drivers to carry property damages liability, or PDL, in the same amount for any damage to your property.
Florida is a no-fault insurance state, meaning that any individual in an auto accident can recover for damages from his or her own insurance, even if he or she was at fault, through PIP and PDL.
This reduces litigation and allows drivers additional peace of mind, but insurance providers in Florida suggest that this system promotes fraud.
Proposed Legislation
Representative Mike Horner, R-Kissimmee, has introduced HB 1007, now currently in the Insurance & Banking Subcommittee, which would completely eliminate PIP insurance and introduce in its place emergency payments coverage with minimum coverage of $10,000. Another bill has proposed tweaking PIP but not completely getting rid of it. This proposal would also limit PIP coverage to emergency care, allowing for costs for an ambulance, medical care provided within 72 hours of an accident and medical conditions diagnosed immediately after the accident.
Hospital groups and other consumer advocates say this is not enough time to properly diagnose injuries after a car accident, especially for conditions such as head trauma that may take time to fully diagnose.
Another concern by consumer advocates is that insurance companies are hesitant to comply with a suggested amendment by state Rep. Jim Boyd, which would require a rate review 18 months after the legislation goes into effect. Insurance companies claim that is too little time for a rate review. However, it would allow Florida's legislators and the public a chance to ensure that the fraud-prevention measure was lowering auto insurance premiums.
Florida Gov. Rick Scott and Chief Financial Officer Jeff Atwater support PIP reform. In addition, according to the National Institute on Money in State Politics, insurance companies donated $13 million to various politicians in 2010. In 2008, only $5.7 million was donated by those representing insurance interests.
With such backing, it is likely that PIP reform will occur in 2012. Whether or not that lowers insurance premiums remains to be seen.
If you have been in an accident, contact a personal injury attorney who can detail Florida's PIP and no-fault insurance for you and ensure you obtain the care you need to recover from your injuries.
Article provided by James & Zimmerman, P.L.
Visit us at http://www.jz-law.com
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