Back in May, our blog discussed how officials here in Florida had commissioned a $125,000 study to examine the economic impact, if any, of repealing the state’s embattled Personal Injury Protection System, a move that came about after efforts by lawmakers to reform the state’s no-fault insurance system and, by extension, curb rising auto insurance premiums, failed to produce the desired results.
In recent developments, the study is now complete and the results show that legislation calling for the end of PIP coverage may be reintroduced sooner than later.
For those unfamiliar with the PIP or no-fault system, it essentially requires all Sunshine State drivers to purchase at least $10,000 worth of medical coverage via their car insurance policy to cover injuries regardless of liability.
This PIP coverage, which must also be purchased regardless of a person’s existing health insurance, has been subject to a series of regular and exceedingly steep rate increases. Indeed, Florida motorists currently have the fourth highest car insurance premiums in the nation.
According to the study, however, if lawmakers did decide to eliminate the no-fault system, it would result in close to $1 billion per year in savings for Florida residents, averaging roughly $81 per vehicle per year.
Breaking the numbers down further, the study reached the following conclusions about the savings created by the elimination of the PIP system:
- In Palm Beach County, motorists would see a net annual savings of 4.5 percent or $67 in their overall car insurance bill.
- In Broward County, motorists would see a net annual savings of 8.7 percent or $130 in their overall car insurance bill.
- In Miami-Dade County, motorists would see a net annual savings of 16.2 percent or $272 in their overall car insurance bill.
In light of these findings, chances are very good that lawmakers will introduce legislation calling for the end of PIP during the first few months of the new session, which is scheduled to start early next year.
Stay tuned for developments …
If your insurance company has unnecessarily delayed payment in connection with an auto accident claim or otherwise underpaid your accident claim, consider speaking with a skilled legal professional as soon as possible.Share