Frequently Asked
Questions About
Your Auto Insurance in a Post-PIP Florida
What choice is Florida’s
Legislature facing regarding your automobile insurance?
After years of studying Florida’s no-fault auto insurance
provision and many failed attempts to reform the system, it is
clear that a system holding a driver who causes an accident responsible
for any injuries would be fairer and less expensive for Florida
drivers than the current no-fault system. This year legislators
have a choice – give drivers a system where those who cause
accidents and their insurance are responsible for the resulting
medical injuries or a system where the injured person and their
insurance must cover the cost of medical injuries, regardless
of who is at fault. Those who benefit from a flawed no-fault system
will attempt to get legislators to opt for no-fault at the cost
of consumers.
The truth is, while no-fault was designed to reduce costs, it
is riddled with legal loopholes and pervasive fraud and abuse
that have combined to unduly drive up insurance costs for all
Florida consumers. The average family pays $360 more than they
should because of flaws in the current no-fault provision, making
Florida’s rates some of the highest in the nation.
What are the problems
with a no-fault system in Florida?
No-fault coverage was supposed to take care of medical bills for
injured motorists, but instead:
- It forces drivers to pay 20% of their medical expenses in
an auto accident, up to $2,000 – even when the accident
wasn’t their fault. This is unfair and drives up insurance
rates for good drivers.
- Drivers with health insurance are paying for coverage twice
over.
- Unscrupulous chiropractors charge the no-fault system twice
what they charge others for the same services.
- Personal injury lawyers game the system, filing lawsuits over trivial
disputes in order to rack up large attorney fees.
- These costs are paid by all of us in our insurance rates –
millions of extra dollars every year.
When will drivers
begin to be held responsible for injuries they cause in automobile
accidents?
Beginning in October of 2007, consumers will begin to benefit
from a system of insurance that holds drivers who cause accidents
responsible. Under the new system, drivers will be able to purchase
coverage that is right for their families instead of being forced
to pay for mandated coverage they may not want or need. That’s
why 38 states, including California and Texas, have already gotten
rid of or do not have no-fault medical provisions.
What does this mean
for me as a driver?
The most important piece for consumers is that you won’t
have to purchase double coverage to pay for medical bills that
are likely already covered by your health insurance premiums.
Instead, the driver who caused the accident must pay the expenses
of those who are hurt in an accident. These expenses include everything
from medical bills and property damage to lost wages and “pain
and suffering.”
And consumers will be given greater choice over their auto insurance
needs. When consumers are spared from having to buy extra medical
coverage and given greater choice, it has been shown to provide
significant savings to families like yours. In fact, Florida
families are expected to save an average of $360 annually in auto
insurance costs.
What auto insurance
coverage am I required to carry?
You are required by law to buy minimum levels of insurance to
cover different costs for any damage you cause in an accident
where you are at fault. If you are not at fault for the accident,
the person who caused the accident will be responsible for paying
for all damages. While you should talk to your insurance agents
for detailed information, the following is a summary of required
coverage:
- Property liability coverage – this
applies when you damage someone’s property (car, buildings,
utility poles, etc.)
- Collision coverage – this covers damage
to your car when you collide with another car or object.
- Comprehensive coverage – this provides
compensation to you when your car is stolen or damaged in ways
that don’t involve a collision.
What additional choices
for coverage do I have?
When your policy comes up for renewal, you should review your
options with your agent to obtain coverage that is right for you.
Some of the options to consider in addition to required coverage
include:
- Bodily injury liability coverage –
this pays for damages when you cause an accident and someone
is hurt or killed.
- Medical Payments Coverage (MPC) - this pays
for you and your passengers’ medical bills (up to your
MPC limits) no matter who causes the accident
- Uninsured Motorist Coverage (UM) - this
pays your medical bills if you are hit and injured in an accident
caused by an uninsured motorist.
What happens if I
am hurt in an accident?
Most of the time, your health insurance will cover any medical
damages you suffer as a result of an accident regardless of who
is at fault. However, if you are in an accident your medical bills
will be covered or reimbursed by the insurance company of the
person who caused the accident. If they don’t have auto
insurance, Uninsured Motorist Coverage (as discussed above) can
act as an umbrella to make sure that you are reimbursed by your
auto insurance company.
What is Floridians
for Lower Insurance Costs?
Floridians for Lower Insurance Costs is a growing coalition of
more than 5,000 business and consumer groups and individuals whose
goal is to ensure that drivers who cause accidents are held responsible
for the harm they cause.
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