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Personal Injury Protection (PIP) Now Mandatory for Florida Drivers

October 16th, 2007 · 1 Comment

cisme.jpgGreg Hemming of Certified Insurance Services authors this guest post to provide a street level view of the insurance world. Greg knows insurance. I’ve personally referred numerous customers to him who are always amazed at the low price and quality coverage they receive through his brokerage.

Greg can be reached at 407-215-7318 or cheapinsurance@bellsouth.net

On October 1, 2007, Florida’s No-Fault Automobile Insurance system, also known as Personal Injury Protection, or PIP, expired. Before its sunset, Florida law required that every driver carry $10,000 in personal injury protection insurance to ensure that motorists involved in accidents have the ability to pay for their medical treatment and associated expenses. PIP pays the policyholder’s benefits no matter who was at-fault for the accident. Over the years since the no-fault law was enacted, the system has become a source of fraud in Florida, and so the Legislature has agreed to the return of PIP with some additional consumer protections.

Effective January 1, 2008:

  • The requirement to carry Personal Injury Protection will return for Florida drivers
  • Drivers must still carry $10,000 in PIP coverage to protect them in case of an accident

To combat cases of fraud:

  • PIP reimbursement will be available only to reputable and qualified providers
  • Reimbursement will be determined by a fee schedule to control unnecessary costs
  • Expands time given to insurers to investigate erroneous claims from 45 to 60 days
  • Grants increased power to the Attorney General to investigate and punish insurance companies that systematically and wrongly deny PIP reimbursement claims
  • Reimbursement priority is given to hospital doctors and dentists to protect emergency care providers, of which Florida currently has an ongoing shortage
  • Claims processing will be streamlined by requiring the merging of similar claims and encouraging electronic transmissions
  • Drivers will be required to prove and maintain Property Damage Liability coverage when registering their vehicle
  • All policies that were in effect on September 30, 2007 that do not expire before January 1, 2008 will have the same PIP benefits and tort immunity they had on September 30, 2007 reinstated. The new reforms will be required January 1, 2007.
  • Drivers with policies that expire before January 1, 2008 will voluntarily be able to purchase any type of coverage they choose. If the insured chooses to purchase PIP benefits, they will also have tort immunity.

Other Auto News Changes:

Drive Drunk? Think again before you do….

In response to Florida Statute 324.023, auto insurance companies will require all policies that have a driver with a DUI with an occurrence date of 10/01/2007 or later to carry policy coverage of $100,000 liability per person / $300,000 liability per accident and 50,000 property damage liability. This means in essence these drivers will be required to carry at least 10 times the minimum coverage as required by the state. This requirement will follow that driver for a minimum of 3 years.

Tags: Insurance

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