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No-fault Auto Insurance

PIP/No-fault future under debate – again

The Florida Legislature is again looking at ending no-fault auto insurance in Florida. Sound familiar? Tweaking no-fault (also known as personal injury protection – PIP) is a frequent topic for legislative debate.

You may recall a fix to fight no-fault fraud came in 2012. Regulators issued a report in 2015 that said the fix appeared to be working. Regardless, it seems the desire to do something about rising auto insurance rates may be driving the desire to abolish no-fault. Florida is one of 12 states with a no-fault law. Proponents say it allows those injured in a car crash to recover costs for medical treatment under their own insurance policy, without needing to determine who is at fault for the accident. Among the proponents are hospitals, which say about one-third of the people they treat for auto injuries only have no-fault coverage. Critics discount that view, saying no-fault duplicates coverage that most people already have with medical insurance.

Cheaper gas fuels more driving, more car crashes, higher auto insurance cost


Drivers everywhere continue to enjoy the benefits of low gas prices, and what are they doing to celebrate? They are driving more. It’s less costly to take a road trip now, rather than fly to another destination, so more drivers are taking to the streets. More cars on the road increase the number of traffic crashes which, in turn, translates into higher auto insurance rates.

Auto insurance reforms may be working, say regulators

In 2012, Florida lawmakers passed legislation to target the fraud and abuse that was driving up the cost of auto insurance. Today, the Florida Office of Insurance Regulation released a report indicating the reforms may be starting to work.

PIP reform on/off switch back on—for now

In 2012, changes were made to Florida’s No-Fault Auto insurance law, also known as Personal Injury Protection (PIP). Those changes were set to launch in January 2013, yet the law barely left the parking lot.

In March, a group of medical providers affected by the way the new law paid out benefits filed a court injunction to block it. In October, Florida’s First District Court of Appeals reversed the injunction, and the changes finally got ignition. The medical providers countered by requesting a rehearing, which was turned down by the appeals court this week.

Pinching PIP Perps: The Fight Against Auto Insurance Fraud

Want to know who to blame for rising auto insurance rates? I can give you names. Actually, the Florida Dept. of Insurance Fraud can give you names—of the arrests made in just one month of those who make a living by filing fraudulent insurance claims.

Organized crime & insurance fraud

If you wonder why insurance fraud seems to be rampant in Florida, it could be because it’s organized—as in “organized crime.” This is no secret. If you look at The PIP Source produced by the state Division of Insurance Fraud, you’ll see many arrests for auto insurance fraud involve the same clinic, family members or occur on the same day. The National Insurance Crime Bureau (NICB) gives Florida its #1 ranking for having the most questionable claims, which are claims that raise red flags.