Auto Insurance Woes for Florida Continue

There is a lot of confusion among residents who are trying to figure out if PIP auto insurance is a good thing or not, and how it will affect their auto insurance once it is gone. Some think that they will not need auto insurance at all anymore, which of course is not true.

Once the no fault auto insurance expires in October, the courts will presumably need to make a judgment on how much and what kind of auto insurance coverage Florida residents will need to carry. However, in the interim, auto insurance is in limbo as no one knows where they stand. The state agency responsible for enforcing the no fault has even come out and said that they don’t think auto insurance will be required any more either.

There is also some confusion as to what happens to those drivers who have paid their policies through October and will have already paid for PIP for the next six months. Questions have arisen as to how they will be handled – will there be refunds given or will they keep their PIP for as long as the current policy is in force?

Then there is the fact that with the law ending, there would no longer be a requirement for the auto insurance companies to report auto insurance policy cancellations to the state. Therefore, the Division of Motor Vehicles will no longer be able to suspend those drivers’ licenses that do not have auto insurance.

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