Some Like End of No Fault, Some Do Not

With the end of no-fault auto insurance coming, there are mixed reactions regarding the end of it. Some say it is a good thing, others say that the whole idea has effectively ruined auto insurance for the state of Florida, one thing is for sure, no one seems to agree.

The legislature said that the no fault auto insurance needed to go and that it was a victory for people in the state. Many in the auto insurance world agreed, saying that people would be able to pay less for their auto insurance now, and that everyone would be happier.

Essentially, Florida motorists will no longer have to pay for $10,000 worth of personal injury protection that was used to cover medical costs and lost wages due to traffic accidents. However, not everyone thinks that the end of PIP is what is needed.

Hospitals and many auto insurance agents think that the new system will be fraught with the kind of fraud and abuse that went on before PIP was mandatory. They say that with it being gone, and a new system not really being in place, they have really gone back to the way things were before they had PIP. This is not a good place to be for the auto insurance industry, nor is it good for their customers.

They point out that the new and the old system had fraud, as with PIP doctors felt that the $10,000 was free money and would push for treatments, etc. that were not necessarily needed just so they could make some money. However, the old system was the tort system, where people would sue for pretty much anything, leaving the door open for crooked attorneys instead of crooked doctors.

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