Florida's PIP is Coming Back

Florida’s auto insurance companies have been trying to convince both policyholders and legislators alike that it is in the best interest of the state and its residents to drop PIP, or Personal Injury Protection, from their auto insurance. It seemed that they were going to be successful as legislators had not voted to extend it. However, that has now changed.

The auto insurance companies have suffered a blow by the Florida Legislature voting to revamp the law and add PIP back in. The new plan is to get rid of some of the features that added to fraud and abuse in the system, with the $10,000 in mandatory coverage returning in January.

The car insurance companies say that they are merely sticking a band aid on a system that is filled with fraud and abuse, and that things will only deteriorate from here. For the three months that it will not be mandatory car insurance customers will have the choice as to whether or not to take the coverage, something that opponents say will only make matters even worse and more confusing when trying to figure out how claims will be settled.

Hospitals and medical providers are relieved that the program is back in place as they knew that they would end up with people who have no health insurance and no way to pay for accidents until claims are settled by auto insurance companies. They say that for those that rely on the benefits they get from having the PIP on their auto insurance, the move is exactly what they needed.




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