While Florida enjoys many accolades, expensive auto insurance is not necessarily deserving of any coveted designation. Ranking second in the nation for insurance costs, state residents are paying a premium for their premiums in what many consider as the most insurance fraud-prone state in the country.
Add to that the 20 percent of motor vehicle owners traveling on Florida’s highways and byways without insurance combined with the state’s designation as the only one that does not require drivers to carry bodily injury coverage. The combination of all these factors has led to skyrocketing uninsured and underinsured premium costs.
The end of personal injury protection?
A recent bill passed by Florida legislators could reduce those costs, but at a price. The legislation would eliminate personal injury protection, also known as PIP, and the required $10,000 state residents are forced to pay.
The purpose of PIP was to reduce litigation, particularly those involving soft tissue injuries, yet those claims continue to be compensated. PIP will be replaced with required bodily injury coverage of 25,000 per person and $50,000 per accident, a mandate that currently doesn’t exist. Barring any legal challenges, it will take effect on the first day of 2022.
While a long-awaited and heralded decision, some feel that it is more of a band-aid approach that does little to change the state’s insurance industries. Fears go beyond potential fraud and include the impact on lower-income Floridians who may end up paying more for coverage or just forsake insurance altogether.
The most effective legislative changes do not alter the impact Floridians experience in the moments following an accident. An experienced personal injury attorney with in-depth knowledge of current and future laws can be the best advocate for victims of negligent motor vehicle operation.