PIP Reform And What It Means For You

Florida is one of the US states that follows no-fault laws and requires motorists to carry personal injury protection (PIP) coverage. These no-fault insurance rules have been in place since the 1970s but there have recently been calls to change the system. If the laws are changed, it is possible drivers will no longer be required to have PIP coverage. That said, bodily injury (BI) coverage may be required instead.

While a bill on PIP reform was vetoed last year, there is still a push to move ahead with some sort of no-fault repeal. The reason why some do not want to reform PIP is because doing so will result in higher insurance rates. If you were involved in a car accident in the cities of Clearwater, Hudson, or Tampa, it is important you understand how your insurance plan supports your recovery needs. Connect with a lawyer who is an expert on personal injury laws and knows when insurance laws will change and what that means for you and your loved ones.

Mandatory PIP Coverage and Fault

Currently there is mandatory PIP coverage in the amount of $10,000. This plan was put in place decades ago in order for individuals to reliably access compensation through their own PIP coverage. This makes damage recovery smoother, because an accident victim will not have to settle the matter with another person’s insurance in order to get payment for their initial treatment.

One of the issues with PIP coverage is that who was at fault is not required to access funds. This is because compensation can be obtained without an at-fault driver. Some insurance companies have asserted that they could be paying PIP claims for injuries that were not the result of the car collision but were sustained elsewhere. Or that an injury is far less severe than suggested.

To push back against fraudulent claims, insurance adjusters often gather their own information about the crash and the resulting injuries. But if a car accident victim believes they are being treated unfairly, lawsuits and claims of bad faith can follow. This leads to volatile legal disputes, which is arguably what the PIP system was designed to avoid.

Insurance Is Essential

Whether there are changes to insurance laws or not, it is recommended that you carry a healthy amount of insurance coverage. Investing in premiums now can mean protection far into the future. Then, after you have made regular monthly payments, you can rely on your insurance to help you move past an accident. A Florida personal injury lawyer can review your insurance policy with you and advise you on what level of coverage you need and what protections are in place following a crash.

Are you confused about how your insurance protects you? Or how you can obtain damage recovery from following an accident? Discuss the details of your situation with the attorneys at Roman & Roman. With over 100 years of combined experience, our knowledgeable attorneys are up to date with recent and upcoming insurance laws. No-obligation appointments are available. Schedule your free consultation today.