Florida has long been a no-fault insurance state. When an accident occurs, injured parties file a PIP (personal injury protection) claim with their own insurance carrier. They do this no matter who was at fault for the accident. Currently, Florida drivers are required to carry $10,000 in personal injury protection or no-fault insurance. However, recent legislation stands to threaten the current system. Suppose you’ve been injured in an accident. In that case, it’s crucial to consult with seasoned Boca Raton car accident attorneys to ensure you get the compensation you deserve.
SB 54: Repealing PIP
Senate Bill 54 (SB 54) passed both houses of the Florida legislature on April 30th, 2021. This bill seeks to eliminate PIP coverage. Instead, it would require all drivers to carry a minimum of $25,000/$50,000 of bodily injury coverage, with an option for medical payments coverage between $5,000 and $10,000 and an additional death benefit. The purpose of this bill is to reduce the number of uninsured and underinsured motorists and fix deficient PIP coverage levels to ensure there is adequate coverage available in the event of a motor vehicle accident.
The Importance of PIP
PIP coverage has several benefits. It gives injured motorists immediate coverage for their medical expenses instead of making them prove the fault of the liable driver through the court system. This allows injured parties to get medical claim payments quicker. It also decreased the burden on the court system, decreasing the number of claimants who need to litigate their case.
SB 54 currently sits on Governor Ron Desantis’s desk. He hasn’t stated as to whether or not he intends to sign it. He has until July 1st of this year to do so. If he doesn’t sign it by then, it won’t become law. If signed, the bill will take effect on January 1st, 2022. Existing policies that were issued before December 31st, 2021, will remain in effect under the Florida Motor Vehicle No-Fault Act until it is renewed, nonrenewed, or canceled any time after January 1st, 2022.
If Florida loses its PIP law, many things could happen:
- An increase in insurance premiums, some estimate as much as $344 annually— it’s likely that a $5,000 limit for Medpay will be about as expensive as the current mandatory $10,000 PIP limit
- More uninsured or underinsured Florida drivers on the road
- Some drivers will be forced to purchase coverage they don’t want or need
- Injured parties will have to pay out of pocket for additional medical services such as rehabilitative and psychiatric care
- The bodily injury coverage requirement could lead to more bad faith litigation
Do You Have Questions About Insurance Coverage? Call Our Knowledgeable Boca Raton Car Accident Lawyers
The Boca Raton car accident attorneys at Demand the Limits Personal Injury Attorneys know how confusing and stressful insurance policies and coverages can be, especially with these looming changes. We are here to help you understand what insurance coverage applies to your accident and to help you maximize your compensation. Call us today at 561-600-3555 or contact us online to book your free car accident case review.