Florida is one of 12 states that requires drivers to carry "no-fault" insurance, in addition to the remainder of their auto insurance policies. Unless something drastic changes fairly quickly, the requirement for Florida drivers to carry "no-fault" insurance will cease to exist on October 1, 2007.
Obviously, this change in the laws will affect many insurance companies with a lot at stake. There's even an auto-insurance company by the name of Florida No Fault Insurance.
I'd like to point out that Florida drivers are still required to carry...
- $10,000 in Personal Injury Protection (PIP), and
- $10,000 in property-damage liability coverage.
For anyone who's interested, the 11 other states that currently have No-Fault Insurance laws are Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Puerto Rico & Utah. Colorado previously had a no-fault system, but it ended in 2003.
And for you brainiacs who are interested in the specific details of No-Fault Insurance, follow this link Current No-Fault Statute.
The many questions that are arising from this decision that has been heatedly discussed in Tallahassee, seem to be never-ending. I don't have the answers to these questions, but here are a few to mull over.
- Will changing this law lead to more uninsured drivers on the road?
- Who will pay the medical bills if someone gets hurt in an accident?
- Will the lower insurance bills be worth it in the long run, if someone is injured and has no medical insurance to pay for treatment?
- Will health insurance rates be raised, when the health insurance companies have to pay for injury claims that were previously covered by No-Fault insurance?
- If No-Fault is eliminated, will drivers even know what insurance they need, to make up the difference?
Here's the really scary part. According to the Department of Highway Safety and Motor Vehicles, when PIP is eliminated, drivers will not have to prove they have property-damage coverage. That seems like a sure way to have more uninsured drivers on the roads!
Florida residents should consult their auto insurers on how these changes could affect them. And perhaps some insured motorists from states that do not require PIP can share with those of us who do (or have until now), how their systems work. Educate yourselves now and change your policies accordingly. I wouldn't want to see anyone suffer when it could have been avoided.
Comments(5)