Lawmakers Could Change the Rules of Auto Insurance

It’s a common scenario in Florida. Automobile accidents happen all the time.  But if you get into a car accident in the Sunshine State, who’s going to pay for the damages?  Under the Florida No-Fault Law, the victim’s insurance company helps pay for medical costs, lost wages and property damages. The negligent driver will be downgraded as a high-risk motorist and will see their premiums rise.  The no-fault system was designed to protect motorists from lawsuits by getting rid of the litigation process. But some important changes could be coming in the next year. Florida lawmakers will vote whether to repeal the Florida No-Fault law

The state legislature is considering changes on the regulations of auto insurance. Florida Congressman David Simmons is currently proposing a bill that would repeal the present no-fault law with a fault-based system. This system would force the at-fault driver to pay for the victim’s damages. But there are addition provisions. It would also allow the victim to file a lawsuit against the negligent driver for additional compensation. Because it’s a tort system, the victim can also sue for pain and suffering.

Under the current Florida No-Fault law, every driver must have personal injury protection as part of their automobile insurance. Last year, Governor Rick Scott signed a law designed to prevent fraud in the PIP system. The law allows people involved in car accidents up to 14 days to seek treatment and distributed up to $10,000 for emergency medical conditions and $2,500 for non-emergency care.  But the law didn’t pass without some resistance. Shortly after it was passed, a trial judge overturned it before it could go into effect. However, the Florida First District Court of Appeals reversed the prior decision. But despite the passing of the law, there continue to be debates over its constitutionality.

Opinions on the bill continue to be mixed by insurers. Many are taking a wait and see approach before deciding whether to repeal the Florida No Fault law. Currently, the American Insurance Association is favoring the fault-based system with mandatory bodily injury coverage.

Regardless of what state lawmakers decide, the fact is all motorists need automobile insurance. National Risk Experts offer comprehensive automobile, motorcycle and recreational vehicle insurance. Car accidents are a part of life. Protect yourself with auto insurances from National Risk Experts. To find out more, call today.

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