Tuesday, 16 October 2007
Florida No-Fault Auto Insurance Renewed
Florida Governor Charlie Crist signed a bill into law on Thursday renewing the no-fault auto insurance in the state. As of January 1, 2008, all drivers in Florida will be again required to have $10,000 in personal injury protection (PIP).
Before the no-fault auto insurance law expired on October 1, it had been in effect for almost thirty years. Some argued that the law should be allowed to die, predicting that auto insurance rates would go down as a result. Insurance companies have also said that the no-fault law made it too easy to file fraudulent claims, and supported its expiration.
On the other hand, hospitals and other health care providers contend without no-fault insurance, there will be more patients injured in accidents who have no insurance.
The bill signed by Crist was somewhat of a compromise. It renewed the no-fault law with a promise to tighten the rules on making claims.
“By taking action on Florida’s no-fault law and personal injury protection requirements, we ensure that Florida’s drivers continue to be protected while also reducing the possibility of fraud,” said Governor Crist.
Between now and January 1, drivers will not be required to have PIP coverage. But if drivers who do not have PIP can be taken to court to determine if they are responsible for paying the damages in a car accident.
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