Florida PIP Changes ?
- Thread starter Gulfman
- Start date
- 1,016
I think most of the no-fault states are re-thinking their strategy.
The no-fault / PIP idea was created with the best of intentions: to prevent delays caused by insurance companies fighting with one another over who pays the medical bills.....
but it also brought some baggage that has driven up premiums...
The main bad consequence it brought was that doctors have milked the hell out of it, and continue to do so.
The second bad consequence it caused was a lack of competition. If you take a state's population and divide it by the number of auto insurance companies in that state, you'll notice that the no-fault states tend to be on the low end. Why? Because many auto insurance companies don't want to fool with no fault states.
The no-fault / PIP idea was created with the best of intentions: to prevent delays caused by insurance companies fighting with one another over who pays the medical bills.....
but it also brought some baggage that has driven up premiums...
The main bad consequence it brought was that doctors have milked the hell out of it, and continue to do so.
The second bad consequence it caused was a lack of competition. If you take a state's population and divide it by the number of auto insurance companies in that state, you'll notice that the no-fault states tend to be on the low end. Why? Because many auto insurance companies don't want to fool with no fault states.
- 1,016
I agree with that! Michigan auto insurance laws are as screwed up as a soup sandwich! And their motorcycle insurance laws are even worse.
Last edited:
- Thread starter
- #5
- 1,016
nope. this is a good thing..... keep in mind, you're talking about two different things here:
repealing the 10K PIP mandate refers to medical coverage.
the new law will requiring 25/50 in bodily injury refers to liability coverage. Something that should have been done a LONG time ago!
contrary to popular belief, Florida is one of only two states that don't have liability requirements (New Hampshire the other).
Most people think that Florida's state minimum liability requirement is 10/20/10.... but that is NOT TRUE! They believe that because almost all auto insurance companies require it anyways.... but technically, there are no state minimum liability laws on the books.
- Thread starter
- #7
So...what you are saying is that there will MORE LAWSUITS filed because of this law....CORRECT???
- 1,016
probably so, depending on how they write the new laws...
that is the downside of it. but there's a trade-off..... more lawsuits but much less fraud (both hard and soft fraud) and more competition.
hard fraud: harder to stage accidents when fault gets pinned on someone. and Florida has an incredibly high rate of staged accidents.
soft fraud: doctors can't get away with as much milking the system in tort states as they do in no-fault states.
more competition because many auto carriers avoid no-fault states.
it's not a perfect system, but it's the lesser of two evils..... as an example, Colorado was once no-fault, and then did away with it in 2004.... things have been better ever since.
- Thread starter
- #9
I see...so you are saying that the proposed rule would make Florida an "at-fault" state???
- 1,016
that's usually what happens. but some of these states get overly creative and try to reinvent the wheel when it comes to auto insurance laws. so I don't know that for sure. but if they write the laws wisely it will change to an at-fault state.
Similar threads
