Following 2012 changes to Florida’s Personal Injury Protection (“PIP”) insurance law, it appears that Florida’s Office of Insurance Regulation has commissioned a study to determine the effect on Florida’s citizens if PIP is repealed or altered in some way. In essence, PIP is state-regulated insurance that every person that operates an automobile must have. Otherwise known as “no-fault” insurance, PIP provides insurance reimbursement for a percentage of medical bills and lost wages in the event that an automobile operator is involved in an accident, without regard to whether the person seeking insurance coverage caused the accident (thus the “no-fault” reference). Historically, critics of PIP in general have focused on fraudulent claims practices under PIP insurance policies, which was the driving force behind the 2012 changes to PIP laws. On the other hand, PIP coverage does provide some measure of assurance that the high cost of medical bills and lost wages due to injuries sustained in an auto accident will be covered. This is especially important in Florida, because state law does not require that every automobile owner carry “bodily injury liability” insurance coverage that is intended to cover the medical expenses and other damages of the party that did not cause the accident. Another form of automobile liability insurance, called “Underinsured/Uninsured Motorist” (“UM/UIM”) is available for purchase from most auto insurers. UM/UIM coverage is intended to provide insurance benefits in the event that the person carrying UM/UIM insurance is involved in an accident with a person that has either insufficient or no bodily injury liability coverage. Because bodily injury insurance coverage is not required by state law, Floridians should consider the purchase of UM/UIM coverage in order to adequately protect themselves. In any event, Floridians should follow any proposed and authorized changes to the PIP law in order to understand how to best purchase automobile insurance to protect themselves and their families.
