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Florida Auto Insurance - Law Extended |
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Florida's auto insurance law (no-fault law) originally set to expire October
1st, 2007, under legislative negotiations, reached an agreement of a possible
three month extension; however the renewal of the law will emphasize fraud
protection. The renewed law would now establish limits on fees that clinics and hospitals are able to charge for the treatment of auto accident related injuries. An additional $2,000,000 were reserved for the purpose of fighting fraud and to allow the Attorney Genera's office to oversee fraud.  Florida Legislature
would have to ratify the proposals composed by Governor Charlie Crist's office.
Lawmakers would be scheduled to attend a ten day budget cutting session set for
October 3rd. Many lawmakers would already be near by due to local budget
committee meetings.Bill Posey (Insurance and State Banking Chairman) stated that passing this law would help avoid increase in auto insurance premiums due to insurance fraud or because Personal Injury Protection was replaced by more expensive coverage requirements. Jokingly, Chairman Posey used a "giving birth" metaphor because it was long and painful. Revamping the Personal Injury Protection law is said to be among the largest ongoing dilemmas this year and is said to stir up controversy within auto insurance companies, agents, lawyers and medical facilities. Not all were for the renewal of PIP insurance laws. A Florida group for Lower Insurance Costs along with multiple large insurance carriers such as State Farm and trial attorneys appose the law. Their protest against the law is due to rising prices due to fraud. With the Florida auto insurance no-fault law, companies must pay out medical costs on behalf of their insured regardless of who is at fault which is vulnerable to auto insurance fraud including fraudulent pre-staged accidents, forged accident reports and injuries leading to fraudulent billing. Allowing the no-fault law to expire would leave those at fault responsible for bodily injuries caused to others; however, purchasing a liability policy which includes bodily injury coverage would cover expenses an insured is liable for to the policy limits. Florida drivers are encouraged to purchase liability insurance which can be fairly inexpensive. Feel free to compare Florida auto insurance quotes from multiple companies with the ability to purchase your policy online. |
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