Florida Lawmakers to Repeal Personal Injury Protection (PIP) in 2020
Significant changes are coming to your auto insurance in 2020 if you live in Florida. A bill (SB 371) that repeals Florida’s Personal Injury Protection (PIP) coverage has advanced through the first Senate committee.
The Senate Infrastructure and Security Committee voted in favor of the bill in a 6-1 vote, according to Florida Politics. The bill would repeal PIP, also known as “no-fault” car insurance, in favor of bodily injury liability coverage. As of January 2020, Florida is one of ten states that have PIP auto insurance.
What Does Bill SB 371 Mean for Florida Motorists?
The new law would require Florida motorists to carry at least:
- $25,000 in liability for injury or death of one person
- $50,000 in liability for injury or death of two or more people
- $10,000 coverage for property damage
Under the current no-fault auto insurance law in Florida, motorists can receive up to $10,000 for an emergency condition and up to $2,500 for a non-emergency condition. In 2012, Florida lawmakers excluded massage and acupuncture as covered medical benefits.
The SB 371 bill would also provide $5,000 in optional medical payments and a minimum of $5,000 in a death benefit.
Experts Criticize the Repeal of PIP No-Fault Auto Insurance
Experts are criticizing the new bill for various reasons. Some believe that repealing PIP coverage would lead to more staging of car accidents and an increased number of fraudulent liability claims.
Under the current law, if two unscrupulous motorists want to stage a car crash, all they can get from a clinic is $2,000 at most. However, repealing PIP auto insurance could worsen the situation and result in even more scammers staging crashes, faking serious injuries, inflating medical costs, and collecting the payout.
Unlike with PIP coverage, in which there is no limit on filing lawsuits, under liability coverage, the driver who was at fault for a collision is responsible for paying for the damages. Earlier versions of PIP repeal bills in Florida mandated medical payments. The current bill, however, makes these payments optional.
The American Property Casualty Insurance Association opposes the new bill due to tort law concerns. The APCIA said in a statement that the legislation lacks any solutions to stop the rampant abuse of Florida’s bad faith law.
A statement from Logan McFaddin, APCIA’s assistant vice president of state government relations, said that in 2017 alone, Florida’s tort system had a whopping $6.6 billion impact on premium costs. He added that the legislation does not protect consumers from rising premium costs, nor does it overhaul the laws that led to an overburdened court system.
Filing Requirements for PIP Coverage Claims in Florida
Under the current law, all bills and charges for medical services and treatment provided to an injured party must be submitted to the insurance provider within 35 days of the date the patient received the treatment or service.
The insurer could deny your PIP benefits request if you fail to submit it within 35 days or if you fail to correctly fill out the required forms (the Centers for Medicare and Medicaid 1500 or a UB 92 form). The denial of your claim could lead to an insurance coverage dispute.
Talk to our skilled Miami car accident lawyers at Pita Weber Del Prado to prepare all required forms and file your PIP coverage claim in a timely manner. Call at 305-670-2889 to get a case review.