No-Fault Insurance is Here to Stay

Last month, Florida’s House of Representatives voted to end mandated personal injury protection (PIP) auto insurance.

You may know this better as the “no-fault insurance”. The state requires all licensed drivers to carry $10,000 in personal injury protection in the event of an accident, regardless of who’s at fault.

The bill to repeal Florida’s long-running no-fault insurance status passed through the House with overwhelming favor and many were expecting the same from the Florida Senate. As the Senate neared the end of its legislative season this month, it was the last hot-ticket item on the agenda.

Many were hopeful that the bill would go through, as Florida’s no-fault insurance status has been a point of contention for some time. However, despite “YEAS” dominating the Senate Vote, the bill was withdrawn from consideration and died in appropriations.

What a No-Fault Repeal Would Have Meant

While legislators had yet to work out details, the common consensus was that no-fault insurance had to go. Not only would a replacement of PIP coverage mean lower insurance rates, but many also feel that no-fault insurance has outlived its use.

With no-fault insurance, only the driver and passengers are covered under the mandatory $10,000.

So what does this mean if a car hits you, causing bodily harm? Well, you or your health insurance plan foots the bill, not the driver. The driver is not required to carry insurance to cover you too.

The State House proposed replacing required PIP insurance with required coverage for bodily harm. This policy, used by most states, protects against bodily harm done to anyone involved in an accident. State lawmakers argue that, while drivers would be required to buy more coverage, there would be decrease in personal injury claims. They also argue that reduced premiums would that drivers would still end up paying less for our insurance.