Florida is currently in the process of trying to repeal the no-fault insurance policy that has been around for decades. While the change isn’t in effect yet and is still making its way through the Senate, it would be a huge difference for drivers all over the state to switch from no-fault to fault insurance policies. There are many states in the country that work on a fault insurance basis, and this system holds drivers more liable for their actions.
Under the current no-fault insurance system, drivers in the state of Florida are required to hold a minimum of $10,000 in personal injury protection (PIP) coverage, which covers any medical expenses after a car accident regardless of who’s at fault. This requirement has been the same since 1979.
Switch to Bodily Injury Coverage
The new bill plans to move away from the PIP coverage requirement and towards a bodily injury coverage system. Motorists would be mandated to have bodily injury coverage of up to $25,000 for the injury or death of one person and $50,000 for the injury or death of two or more people. This coverage would also include property damage coverage of up to $10,000.
The difference between PIP and bodily injury coverage is that it covers only the injuries of others as opposed to personal injuries. It would save drivers 5.6 percent in insurance costs as opposed to previous PIP insurance costs, and it wouldn’t be required.
Increase in Personal Injury Lawsuits
If this new insurance system goes into effect, there will likely be an increase in personal injury lawsuits. If you get injured in a car accident and don’t have PIP insurance, you may have to hire a car accident lawyer in West Palm Beach, Miami, or Fort Lauderdale to seek compensation for your medical expenses.
While the at-fault driver may have bodily injury coverage to pay for your damages, that coverage will only cover up to $25,000. This may seem like a negative consequence of the new system, but filing a lawsuit can mean that you receive a much larger settlement for your injuries.
If you live in the state of Florida, it’ll be important to keep an eye on this law in the future. The change will have a significant effect on all drivers and insurance companies in the state. You’ll likely be notified on how to change your policy when the time comes, but doing your research ahead of time is always a good idea.