Home » Law Enforcement Articles » Change May Be in Store for Florida's No-Fault Car Insurance System
Change May Be in Store for Florida's No-Fault Car Insurance System
No-fault car insurance is under debate in Florida, with state officials, industry representatives and consumer groups disagreeing about whether to replace, modify or maintain the system.
October 06, 2011 /Law Enforcement PR News/ -- With the support of Governor Rick Scott, a group of Florida lawmakers is poised to overhaul the state's car insurance laws, changing or even eliminating no-fault coverage for injured car accident victims.
Under the current law, all Florida drivers are required to carry at least $10,000 in no-fault coverage, also known as Personal Injury Protection, or PIP. The proposed changes to the law would make that coverage optional rather than mandatory.
No-fault insurance was established in Florida in 1972 with the intent of streamlining the injury-claims process and reducing the number of car-accident lawsuits arising after insurance companies refused to pay victims' claims. By allowing injured accident victims to receive payments of up to $10,000 from their own insurance providers -- regardless of who caused the underlying accident -- lawmakers hoped the payment structure would reduce the need to litigate to recover adequate compensation for victims' injuries and medical expenses.
Critics of the no-fault system, including many of those currently pushing for change, argue that it invites insurance fraud by people hoping to cash in on staged accidents.
Cost is another factor in the debate. Currently, drivers pay about $100 to $130 annually for the no-fault portion of their insurance policies. While the proposed changes to the no-fault law could lower insurance premiums for well-insured drivers, they could end up raising prices for drivers with bare-bones policies if no-fault is replaced by other requirements, such as mandatory bodily injury coverage. This raises concerns that more drivers may opt to go uninsured.
If Florida's no-fault car insurance system is eliminated, it will likely be replaced by a tort system similar to those used in most other states. Under a tort system, injured accident victims must prove fault before receiving compensation for their injuries, usually from the at-fault driver's insurance company.
If you or someone close to you has been injured in a car accident, there is legal help available. Contact an experienced personal injury attorney as soon as possible to learn more about your rights and the legal remedies that may be available to you.
Article provided by Winters & Yonker P.A.
Visit us at www.wintersandyonker.com
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