Florida to retain outside firm to study elimination of PIP insurance
Last week, our blog reported on how recent reform efforts by the Florida Legislature targeting fraud present in the state’s no-fault insurance system and, by extension, rising auto insurance premiums have largely failed. Indeed, we discussed how reports have found that Personal Injury Protection rates have increased considerably since January 2015, while the Office of Insurance Regulation determined that Florida drivers now pay some of the highest auto insurance premiums in the nation.
We also discussed how even though lawmakers have proposed legislation calling for the elimination of PIP coverage altogether, these efforts have consistently failed to advance.
It appears, however, as if there is now a nascent interest among both lawmakers and state officials to reconsider this possibility.
Records released from the Department of Financial Services earlier this week indicate that the state has authorized a $125,000 study designed to provide information on the impact of repealing and replacing PIP coverage with bodily injury liability insurance, something that the majority of states already do and which 90 percent of Sunshine State motorists already have.
According to the released records, an outside firm will be retained to perform the study by June. A first draft of a report will be due by August 26 and a final draft due by September 2.
It will certainly be interesting to see what these reports conclude. Chances are good that the firm retained will look to the experience of Colorado, which eliminated its no-fault system back in 2003. While there was understandably some initial concern, drivers in the state ultimately saved an average of 35 percent on car insurance premiums and none of the fears about dumping PIP coverage came to fruition.
In the meantime, several Sunshine State lawmakers have already announced their plans to reintroduce legislation calling for the end of PIP coverage sooner than later.
Stay tuned for updates …
Consider speaking with a skilled legal professional if your insurance company has underpaid or unnecessarily delayed payment in connection to an auto accident claim.
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