Sides Drawn in PIP No-Fault Insurance Debate
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It might not be the most high-profile issue in front of the Florida Legislature this session, but the impending October 1st sunset of PIP automobile insurance is an issue that affects all Floridians and their bank accounts.
Consider this--an uninsured motorist is in an auto accident. Regardless of who is at fault, PIP (Personal Injury Protection) provisions of your auto insurance offer $10,000 coverage. Insurers pay 80% of medical expenses and 60% of lost wages plus death benefits. For the poor or under-insured, that becomes a safety net they otherwise couldn't afford. Not surprisingly, the medical establishment wants to retain PIP.
Lobbyists from the insurance industry have converged in Tallahassee trying to convince our lawmakers that PIP is just too expensive for Floridians and allowing it to sunset may actually lower your premiums. Really?
When is the last time that happened? Florida's auto insurance premiums are already among the highest in the country.
PIP is vulnerable to fraud argues law enforcement. So strengthen law enforcement and anti-fraud measures. Don't throw out the baby with the bathwater. No-fault coverage is needed by all Floridians, especially those who have no health insurance -- approximately 20% of working Floridians. Unless a new system of BI coverage can be crafted by this legislature, PIP should remain in place.
If the Legislature doesn't act, the $10,000 coverage will only address property damage.
Paul Jess with the Florida Justice Association pointed out that if the Legislature does nothing and allows the no-fault law to lapse, it would be akin to saying that cars are more important than people, since drivers would only be required to buy auto policies that cover potential property damage.
"It's ironic that we have to be financially responsible to fix your property, but we don't have to be financially responsible to fix you."
If someone is hurt--they are just out of luck and resources to resolve a potentially life-changing incident. Health insurance is likely to rise for all of us to cover the shortfall created by an absense of PIP coverage. Let's encourage our lawmakers to show some backbone in flghting the insurance industry and act on behalf of the citizens of Florida they have the duty and privledge to represent.