I previously wrote on the need for Uninsured Motorists’ (UM) in Florida. This is, in part, due to the current Personal Injury Protection (PIP) currently required by statute. For the second session in a row the Florida Legislature has failed to act. This year SB1766 and HB1063 attempted to address the issues but the legislative session has ended and neither bill will become law.
Current PIP Law
Currently there are ten states that have no-fault auto insurance laws. In Florida, “no-fault” auto insurance is called Personal Injury Protection (PIP). It is mandatory in Florida that you carry PIP coverage with a $10,000 limit. The term “no-fault” is not an indicator of liability but rather a description of the insurance system. It is used to describe an insurance system in which each driver’s own insurance company pays for their driver’s losses, regardless of fault and typically provides payment for a portion of the medical expenses and lost wages, as well as some out-of-pocket expenses. It is important to note that there is no requirement that drivers carry Bodily Injury (BI) coverage.
Regardless of who is at fault in an accident your insurance your PIP coverage. Your insurance company will pay 80 percent of your medical expenses and 60 percent of your lost wages, up to $10,000. If $10,000 does not cover your losses, including the lost wages, you may need to bring a personal injury lawsuit to recover your damages.
Recent years have seen an increase in PIP claims and payments. Legislatures are concerned that some of these claims were fraudulent. It is estimated that the proposed changes would have saved Florida motorists $1 billion a year.
Recent Legislative Action
Hoping to bring down rising insurance rates, the House passed by a vote of 89-29 a bill requiring require motorists to carry minimum bodily insurance coverage of $25,000 for injuries to another person and $50,000 for injuries to two or more people.
The Senate bill never passed a vote. The primary difference in the two versions of the bills was the MedPay provision contained in the Senate Bill that mandated medical coverage in the amount of $5,000. The MedPay coverage would provide similar coverage to current PIP medical benefits.
If the Senate had passed its version of the bill, the two chambers would have had to agree on one version before it could be sent to the governor for his signature or veto. Look for the legislature to continue with reforms in the next session.
Until then remember that UM coverage can provide you the protection you need to recover damages suffered by the negligence of another.
Contact Us Today
If you have questions about an auto accident and recovering the damages you have suffered contact Don Morrell at Kendrick Law Group 407-641-5847.