Driving in Florida will never be the same from now on. The state has repealed its very old no-fault car insurance system.
Florida’s No-Fault System
Every state has its own rules in dealing with car insurance systems. Independent insurance agents in Cape Coral, FL, such as gulfharborinsurance.com have different programs according to the needs of the drivers. But the law has a standard.
Before you can drive, you need a property damage liability (PDL) and personal injury protection (PIP). Both of these should have a minimum coverage of $10,000.
Many people call PIP as the no-fault insurance in the state. By principle, it means both parties receive some form of indemnity from their insurers regardless of who caused the accident. PIP protects the driver and anyone onboard the vehicle. If you suffer from a bodily injury, for example, you can use PIP for that.
The advantage of the no-fault system is it somehow reduces the insurance premiums. Moreover, it imposes certain restrictions when it comes to lawsuits.
But there are also many problems associated with the no-fault system. One of these is Florida’s law made it only optional to have a bodily injury liability (BIL). In other words, you can pay for the property damage you made but not for the injuries sustained by the other party.
In 2018, the House voted to repeal the no-fault system at 88-15. Known as the House Bill 19 (HB 19), it will now introduce BIL coverage at $50,000 per accident and $25,000 per person. It also means Florida drivers don’t have to pay for PIP. However, the bill also requires them to have $5,000 for possible medical payments.
It’s unclear what these changes entail for Florida drivers. Some believe it would probably put an end to a flood of PIP lawsuits. It may also make the drivers more responsible when behind the wheel.
Florida drivers pay one of the highest insurance premiums in the country. A number think this repeal will help save them more money – about $81 per car. But with the introduction of higher minimum limits and BIL, it may also drive the costs of insurance in the long term.
Either way, unless you can live without a car in Florida, it’s time to review your policy. Drivers need to start discussing their options with their insurance companies or even explore other programs to maximize the benefits and costs.