No-Fault Insurance Law to Sunset:
What Fallout Do We Face?
On October 1st, Florida's no-fault auto insurance laws are scheduled to sunset. Also disappearing is the requirement that all drivers carry a minimum level of personal injury protection (PIP). The Florida Department of Motor Vehicles is still trying to determine whether it will be able to require even minimum property damage coverage. With the law's expiration, Florida will join only two other states that do not have mandatory minimum auto insurance requirements.
Repercussions are likely to be widespread. The 20% of Floridians who have no health insurance will have no coverage for treatment of injuries sustained in auto accidents. Hospitals say they will be forced to bear the costs of administering emergency treatment to uninsured accident victims. Health insurance companies say any decrease in auto insurance premiums will be completely offset by increase in health insurance premiums.
Auto insurance companies argue that the expiring law allows rampant fraud that the state does not have the resources to prosecute. They dispute claims that there will be increases in health insurance premiums and accident-related lawsuits.
Despite calls from consumer groups, hospitals and others, the legislature failed to pass new legislation during the regular session earlier this year. Now, many are calling for the legislature to address the issue during the upcoming special session scheduled to begin on September 18.
Resources for More Information
The Florida Department of Financial Services website has a very detailed explanation of what will happen after the law sunsets, including a flowchart showing who will pay for damages and injuries in various accident scenarios and a discussion of policy considerations for new legislation.
The St. Petersburg Times has written a useful and detailed Q&A.
Take Action
Tell the Legislature to Get the Job Done Right
Sign our petition and join thousands of Floridians in asking Governor Crist and legislative leaders to address PIP before it sunsets on Oct. 1 or during the October special session. More
Contact Your Officials to Fix PIP and KidCare in the Special Session
Email your Senator and Representative and urge them to make sure PIP and KidCare are addressed in the September special session. More