Florida Orders Study To Determine Effects Of Repealing PIP Insurance

top-down view of a person going over a document labeled 'insurance policy'

The State of Florida intends to sponsor a scientific research study that would determine what the possible outcomes might be if Florida’s no-fault automobile insurance program is discontinued altogether or replaced with a new and improved version of the program.

A request for new program ideas was presented by the Office of Insurance Regulation and indicates that the new study is expected to discover what the potential impact to the residents of Florida might be if the existing personal injury protection coverage requirements are discontinued and replaced with multiple levels of bodily injury coverage. The study will also aim to discern if it might be best for the current auto insurance requirements to be scrapped altogether. It’s entirely possible that Florida residents are being harmed more than they are being helped by having a law requiring predetermined levels of insurance to cover bodily injuries.

In Florida, the no-fault program is colloquially referred to as PIP coverage, an acronym that stands for Personal-Injury Protection. The main goal of the proposed research study is to find if the actual effect of the law was to lower the occurrence of fraud within Florida’s no-fault system. Under the current no-fault system, which has been in effect for several years, motor vehicle operators are legally required to purchase and maintain personal-injury protection insurance coverage, including a minimum of $10,000 in medical benefits.

It’s anticipated that an actuarial consulting firm, which has not yet been publicly named, will be given the contract to oversee the study by June 1. Early estimates show that the study may cost nearly $125,000. The final cost of this study will not be available until research has completed and the results have been posted.

The study’s findings are expected to be available as a draft by the end of August. The final report should be completed and ready for presentation to the Governor’s office, the Florida Senate President, and the Florida House Speaker before the end of the first week of September. Once the study’s findings have been presented, then the government of Florida can assess the findings and proceed with a viable solution for residents.

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