Florida's PIP, No-Fault Sunset Concerns Council Members

January 3, 2006

There is no support among Florida Insurance Council members for the outright reenactment of the no-fault/PIP statute, Sam Miller, FIC executive vice president told Insurance Journal.

Florida's PIP/no-fault auto insurance system is scheduled to sunset (expire) Oct. 1, 2007 unless reenacted during the 2006 legislative session.

"Overall auto insurance rates, for the complete coverage you probably have, have leveled off or actually gone down the last few years," Miller said. "Rates continue to increase for PIP, the insurance covering injuries to a driver and passengers in his or her car, required for all motorists by state law."

Many low income Floridians carry only the auto insurance required by state law, so they are paying more than they should and more than motorists pay for comparable auto insurance in other states.

"There is unanimity, however, in the belief that the current system is in disarray as a result of statutory and judicial changes during the past three decades," Miller explained.

"Florida Insurance Council members believe the current No-fault/PIP system is broken and Florida policymakers should work toward creating a more efficient auto reparation system," Miller concluded. "The current auto reparations system results in a lack of certainty and unnecessary frictional costs to the detriment of insurance consumers."