Personal injury protection a hot issue for insurance industry and residents
Recently a car crashed through the back fence of my neighbor’s yard. The driver appeared to have injuries, with glass shards in his face and bruises. I’ve often wondered who picked up the tab for the fence he destroyed, the outbuilding he leveled, and damages to shrubbery and trees. Cars routinely speed down Loretto Road. Speeding incidents increase dramatically late at night.
I’ve received letters and notices in the mail about Personal Injury Protection. The Florida Association of Insurance Agents sums it up tidily. “Originally enacted in 1971, Automobile No-Fault Insurance, also known as PIP (Personal Injury Protection), is a required coverage under Florida law. It covers the insured driver and passengers for accident-related injuries, regardless of fault, with payment made directly to the insured(s) by his/her own insurer. Unless reenacted, the No-Fault system will cease to exist (sunset) October 1, 2007.”
The Florida Times-Union reports area hospitals are upset about the expiration of PIP, noting, “Hospitals rely on the mandatory medical coverage provided by auto insurers to help pay for care provided to accident victims, especially those without health insurance.”
Health insurance companies probably won’t be too happy if the No-Fault insurance sunsets, because that will increase their own claims.
Right now, there’s a lot of room for improvement in PIP. I am required to buy this insurance, even if I don’t need it, since I have health insurance. But in general, PIP is viewed as an opportunity for fraud and inflated billings. Everyone is familiar with the whiplash scenario. You have a minor scrape in traffic and suddenly the very healthy person you bumped into has a slew of medical problems.
Here’s a really intriguing aspect of PIP, pointed out by the Times-Union: If the PIP law is allowed to sunset, Florida motorists who are considered “safe drivers” will not be required to buy auto insurance, said Julie Baker, spokeswoman with the Florida Department of Highway Safety and Motor Vehicles. A safe driver is a motorist who has had no driving convictions (such as speeding fines) in the past three years, or had his license revoked or suspended in the past seven years.
I’d say this is a pretty important issue. Legislators need to address it. (Text and Photo by Kay B. Day)
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