The End of No-Fault Insurance in Florida?

State lawmakers are contemplating ending Florida’s no-fault auto insurance system.  A new law could nix the current system in 2019 and is being done in response to the allegedly increasing problem of insurance fraud.  Like any state, Florida insurers have faced fraud and insist that no-fault is to blame.  Lawmakers claim that this will help bring insurance premiums down for Florida drivers.

Florida’s no-fault system has been in place for several decades, during which time, insurance premiums have increased, allegedly due to insurance fraud, which has led to financial losses for insurers.

The no-fault insurance system was designed to make insurance claims less adversarial and more straightforward by requiring drivers to carry personal injury protection insurance (PIP), which comes with $10,000 in medical coverage for injuries relating to an accident.

It is clear that insurance companies have certain motivating factors in lobbying for the end of the no-fault insurance system.  However, outside of the allegations of increasing fraud, which some sources claim has actually been in decline, there are other factors that will certainly affect Florida drivers.  Florida is also a state that grapples with a sizeable number of uninsured and underinsured drivers.  This means that if a person is involved in an accident with an uninsured, and they sustain injuries, it could end up being a very costly occurrence, despite it being no fault of their own.

Should Florida drivers be punished just because auto insurance companies are crying foul due to allegedly rampant fraud?  Lawmakers may be able to decide that, but let’s hope that those same lawmakers will take into consideration the other effects changes in this legislation will have on the state’s drivers.

For further discussion on this topic please feel free to contact me at the Schulman Law Group at (954) 349-3300 or at info@www.schulaw.com.