April 1, 2012

An Overview Of Major Changes In Florida No Fault Automobile Insurance

Major changes have been taking place all across the United States with regard to automobile insurance. Because car insurance is a state mandated and state run program, the changes vary from state to state. For many drivers, this means a reduction in premiums while still maintaining the same amount of coverage. For insurance companies, this means that they have to rethink how they offer their plans. In Florida, new laws are taking effect this year that will help drivers stay protected while helping them reduce the amount of premiums they pay each month. A driver's car insurance deductible will likely be lower because of these new changes and fraud will also be cut down.

All drivers are required to carry $10,000 or PIP, or personal injury protection coverage and $10,000 in PDL, or property damage liability coverage. The reason Florida drivers must carry so much coverage is because they live in a no fault state, otherwise known as PIP insurance coverage. Regardless of fault, all drivers can receive PIP coverage, as can members of their household, some passengers, and their children. All passengers that carry PIP while riding in another car whose driver also has PIP coverage will receive medical care. This entails getting medical care after an accident if they need it, regardless of whether they have health insurance or not.

Drivers have been paying high premiums to have automobile insurance in Florida because of the no fault laws. The reason is that the insurance provider has to pay out any time a driver gets into an accident regardless of fault. At the same time, drivers have been taking advantage of the automobile insurance laws and claiming medical care that was unrelated to an accident. The new Florida laws are being implemented to help combat that, ultimately reducing car insurance deductible amounts.

First, these laws will require new licensing requirements for medical providers offering PIP services. This will eliminate acupuncture and massage therapy from being covered care. Essentially, this will reduce the amount of fraud in PIP coverage. The new law will also require that drivers seek medical care within seven to 14 days in order to claim PIP coverage. Again, this is to reduce fraud on the part of the driver and reduce the amount of risk the insurance provider takes on. To further reduce car insurance costs for Florida drivers, the state is requiring that insurance providers reduce PIP premiums for all drivers by 25 percent. The only way around this law is by proving through clear, convincing evidence that the high premiums are necessary.

New Florida laws will help drivers stay covered after an accident and help reduce their overall monthly premiums.