Broward's News Beat- Fighting Fake News One Story At A Time: Life Without PIP Insurance

What is the Florida Motor Vehicle No-Fault Law?

Florida Statute 627.730-627.7405

627.731 Purpose.--The purpose of ss. 627.730-627.7405 is to provide for medical, surgical, funeral, and disability insurance benefits without regard to fault, and to require motor vehicle insurance securing such benefits, for motor vehicles required to be registered in this state and, with respect to motor vehicle accidents, a limitation on the right to claim damages for pain, suffering, mental anguish, and inconvenience.

Currently, all Florida motor vehicle owners and operators are required to purchase Personal Injury Protection (PIP) in the amount of $10,000 for losses sustained by the insured or covered person as a result of bodily injury, sickness, disease, or death arising out of the ownership, maintenance, or use of a motor vehicle.

By law, PIP coverage pays the following benefits, up to the $10,000 limit:

80 percent of reasonable and medically necessary medical expenses;

60 percent of disability benefits for lost gross income and earning capacity;

100 percent of replacement services (such as child care, housekeeping, etc.); and

$5,000 per individual death benefit.

Is No-Fault going away?

If the Legislature does not make any changes, the Florida Motor Vehicle No-Fault Law will expire on October 1, 2007. The requirement to purchase PIP coverage will also expire on October 1. Beginning October 1, whether you are at fault or not in an accident could make all the difference as to which driver is liable to pay for damages from an automobile accident.

How do I protect myself as a driver in a fault-based system?

To make sure that you have coverage in case you sustain any injuries, you should consider purchasing optional medical payments coverage from your auto insurance company. Optional medical payments coverage will pay for medical bills incurred by you, your family, and passengers in your car who are injured in an auto accident. You may also wish to increase your bodily injury liability coverage (in case you injure another person and are at fault) and uninsured motorist coverage.

I bought an auto insurance policy that doesn't expire until January. What happens to my auto insurance policy on October 1, 2007?

Regardless of when your auto insurance policy is up for renewal, any accident occurring on or after October 1, 2007, will be handled under a fault-based system. Your insurance company may continue to provide your PIP benefits or may consider your PIP coverage to be a form of optional medical payments coverage for the remainder of your 6-month policy.

It is important to note, however, that all damages from accidents on or after October 1 will be paid by the at-fault driver. If your insurer initially pays your damages and you are not at fault, you may be expected to recover these damages from the at-fault driver.

What happens if I am at fault in an accident, and my medical expenses exceed the limits of my medical payments coverage?

Under an at-fault-based system, the negligent party is responsible for damages. Either you or your health insurance will pay for your medical expenses that exceed the limits on any medical payments coverage under your auto insurance policy.

What happens if I am injured by a negligent driver? Do I have to go to court to get my claims paid?

Possibly. Many times, auto insurance companies will settle based on an acknowledgement of the at-fault driver in a particular accident, and benefits are paid accordingly. In some cases, there is a dispute about who is at-fault or to the extent of the damages, and court action may be necessary.

What happens if I am injured by an at-fault driver who does not have auto insurance?

Hopefully, you have purchased optional medical payments coverage or uninsured motorist coverage from your auto insurance company. If you have, your insurance company will cover your medical expenses. If you have not purchased any auto insurance, however, you or your health insurance will likely pay for your medical bills. You may of course sue the at-fault driver, but uninsured motorists may not have sufficient assets from which to recover damages.

If I have health insurance coverage, do I really need auto insurance coverage as well?

Yes. Purchasing auto insurance coverage will help you protect yourself if you are at fault and liable for an accident. Keep in mind that your health insurance may pay for your medical treatments after an automobile accident, but co-pays, deductibles and coverage limits may apply. Additionally, your health insurance will not cover medical claims of other persons injured in an accident if you are at fault.

What will happen to my auto insurance rates?

You may see a decrease in your auto insurance premiums, due to the expiration of No-Fault on October 1, 2007. However, please note that if you choose to purchase optional medical payments coverage, there will be an additional cost to your policy. In addition, as demand increases for additional bodily injury and uninsured motorist coverage, premium costs may increase as well.

What's the bottom line?

You should purchase sufficient auto insurance coverage to ensure that you and your family receive proper medical treatment. Purchasing auto insurance coverage will also help protect your assets in the event you are at fault in an accident.

If I am in an accident, will my lost wages be covered?

You may seek to recover lost wages if you are in an accident from the at-fault driver. Some of your lost wages may be covered if you are not at fault in an accident and the at-fault driver has Bodily Injury Liability coverage. If the at-fault driver does not have Bodily Injury Liability coverage, and you have Uninsured Motorist coverage, some of your lost wages may be covered.

If none of the above circumstances apply, you may not be able to recover your lost wages outside of a courtroom; a lawsuit brought against the at-fault party may be your only recourse.

What does Property Damage Liability cover and under what conditions?

Property Damage Liability coverage pays for certain damage (up to the limit of the policy) that you or anyone covered under your policy cause to another person's property through the use of an automobile. It only covers damage for which you or anyone insured under your policy are legally liable. The damage may involve a parked, running or rolling automobile.

"Property" isn't limited to another vehicle; it may include a fence, telephone pole, building or animal. This coverage may apply even if you drive someone else's automobile. The terms and conditions of your policy determine whether or not coverage applies to anyone using your vehicle.

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