No-fault auto insurance reforms start to phase in
Florida’s no-fault auto insurance law was reformed, and it brings changes in the way those injured in a car crash will seek medical treatment. But nothing changes for you until your auto insurance policy renews.
While the changes become effective on January 1, 2013, they won’t start on that day for you unless you get a brand new insurance policy at the first of the year. The conditions outlined in your current auto insurance policy stay in force until your policy renews.
About a month before your auto insurance policy renews, you are likely to get a letter from your insurer telling you about the no-fault changes. No-fault is also known as personal injury protection (PIP). It pays for medical treatment necessary following an auto accident no matter who is at fault for the crash. Reforms were passed by the Legislature in 2012 that determined the type of medical providers who are authorized to provide treatment under the PIP benefit. Why? Because there was considerable fraud and overbilling for services associated with PIP, and every driver was paying for this abuse. There have been many arrests of fraudsters, thanks to the efforts of law enforcement and the Florida Division of Insurance Fraud – and maybe these reforms will give those folks a breather.
For many people, nothing will change at all. Those with injuries will go visit their personal medical provider or an emergency room. Click here to learn who is authorized to provide treatment.
Most auto insurance contracts are for six month periods, so somewhere between now and June, the changes will come to you. You’ve likely heard that it will take a full year to see if the reforms work as intended – and now you know why.