Why Did Florida State Fail to Repeal PIP?

Since the 1970s, the Florida government has required a unique type of car insurance called Personal Injury Protection, or PIP.  This no-fault insurance requires every car owner to carry a minimum of $10,000 in coverage. If an accident occurs, drivers can be automatically compensated for their medical expenses, lost wages during medical care, and property damage without fighting with their insurance company over fault.

However, the Florida House of Representatives made headlines in April when it voted 89-29 to replace the state’s PIP Insurance.  Concerns have risen recently from the National Insurance Crime Bureau and legislators that more and more people are taking advantage of the PIP system to file fraudulent claims. This is illustrated by the fact that the number of drivers and auto accidents has remained steady in Florida, but the number of PIP claims and payments has surged.

Consumers are also frustrated by the rising price of PIP insurance, which has surged a full 25 percent in just two years. Many states have discovered that the PIP system is riddled with flaws, which is why Florida is only one of a few states left that uses the no-fault system. The House of Representatives responded to these problems by voting to overturn PIP in favor of regulations that drivers carry minimum bodily injury coverage worth $25,000.

Though the House bill would have saved drivers about $81 in insurance per vehicle and minimized insurance fraud, the Florida Senate was unable to pass the bill before the end of their annual legislative session. Considering that Florida has one of the lowest required coverage amounts in the country, but asks its drivers to pay one of the highest average premiums, drivers are frustrated that the reform passed by the House did not also pass the Senate. Any reform will now have to wait until the Senate’s next session, but even then, a passing vote isn’t guaranteed.

If you have been involved in a car accident in Florida and are experiencing conflicts with your insurance company, call Catania and Catania Attorneys at Law. Attorneys Peter and Paul Catania have been serving the Tampa Bay area for more than 25 years and know exactly how to navigate your complex situation in order to win you the compensation you deserve. Call 1 (800) 253-5523 to learn what Catania and Catania can do for you.

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