Florida is one of the few states in the USA that uses “no-fault” insurance to cover auto accidents. In theory, no-fault insurance is a financial and legal option that, in theory, is designed to be easy for everyone. In states that use “traditional” insurance policies, if there is a car accident, one of the first things that needs to be determined is who caused the accident. Once the offense is discovered, the insurance provider for the at-fault driver will be expected to pay any necessary insurance or medical expenses. This can sometimes be a long time and delay in receiving funds that would otherwise be required for rehabilitation or medical treatment.
A no-fault concept should provide a quick, easy way to solve costly car accident problems. The government that uses no-fault insurance means that, in theory, in the event of an accident, regardless of who is at fault, the insurance companies for all parties involved will immediately pay to cover the costs. This seems good, because it reduces the wait. From a legal point of view, it seemed like a good idea, too, as part of the idea was to reduce the number of cases trying to recover the costs of small repairs or medical care in court.
The reality, however, did not go the way most insurers or drivers in Florida wanted.
Crime Finds a Way
One of the biggest issues with Florida no-fault insurance is that it leads to many “bad” insurance claims. In other words, some people commit insurance fraud. Every driver sometimes does this, and in the worst cases, it is organized among themselves. drivers, doctors, lawyers, and even auto repair businesses, such as auto glass manufacturers.
Drivers, for example, will receive false information from a doctor, usually something similar to a disc injury. This type of injury can be debilitating but easy to fake. Perhaps most importantly, it is a muscle injury that does not show up on an x-ray, which makes it easier to diagnose.
However, windshield replacement is the most common insurance policy in Florida. Sometimes, drivers don’t even know they are part of an insurance scheme. A damaged windshield may only cost $200-$300 to fix, but with false claims, unscrupulous auto repair businesses can run up hundreds of dollars without informing drivers of what’s going on.
Personal Injury Protection or PIP is at the heart of no-fault insurance in Florida. There are 12 states left in the USA that still use no-fault policies, but three of them, Kentucky, Pennsylvania, and New Jersey, are optional. Florida is one of the nine remaining no-fault states, and this is where PIP becomes the foundation.
All drivers must, by law, have $10,000 in PIP insurance. This means that any accident in Florida will be quickly settled up to $10000 due to no fault. However, for accidents that exceed this in damage and / or medical expenses, it is time to go to court to protect all the money if the drivers are at fault or their insurance company does not admit fault.
Because of the $10,000 limit and the amount of fraud that occurs to use the “easy” $10,000, Florida is always in the top 10 most expensive insurance states and spends a lot of time moving around in the top five every year. .
The Need for Reform
In the past, there have been attempts to eliminate or change the way Florida no-fault insurance works. In 2007, no-fault insurance was canceled and recently reinstated. The state recently tried to reform some of the measures behind no-fault insurance, but Governor DeSantis vetoed the bill in 2021, leaving Florida in the state of no-fault insurance. A new effort has begun this year to try again, with the idea of eliminating the current $10,000 in PIP and $25,000 in personal injury insurance. It is unclear whether the new test will completely eliminate the possibility.
One of the biggest issues with Florida’s recent no-fault policy is that it was locked in the past. The original PIP cost was introduced in 1979, and the cost has not changed in the decades since its introduction. However, $10000 converted to current dollars is close to $77000. The cost of health care has risen dramatically in the decades since PIP was implemented, but the $10,000 cost is often not enough to cover the medical costs that a driver in 2022 will face.
The Florida insurance industry is full of bad faith even though PIP is supposed to deliver. In cases where people legitimately need insurance, they may need to go to court to fight for medical compensation that exceeds $10000 quickly.
If you are in a situation where you were involved in an accident, and you are not at fault, talk to a car accident lawyer to help you.