FL Residents Fed Up With No Fault Insurance Law

The topic of no fault auto insurance in the state of Florida is one that is often met with some resistance. This is because the state has a real problem with car insurance fraud. The fraud typically is committed by criminals who stage automobile accidents to collect compensation. There have been huge crime rings involving both doctors, medical clinics, massage therapists, and every day people who want to bilk auto insurance companies out of money.
Many Florida drivers had wanted the state and its governor to finally take action and rid them of the no fault auto insurance law. It has been proven to save states money by taking such an action. One state that did away with its no fault auto insurance law is Colorado. They are reaping the benefits of such an action because they have cut costs by approximately 35 percent. This shows that Florida drivers could save money on their car insurance premiums and reduce the rate of auto insurance fraud that is happening in their state.
The state has lost over one billion dollars due to fraudulent accident claims so most drivers would think that the governor would want to take action and rid the state of the law to save both auto insurance companies and drivers as much money as possible but this is not happening at all. The auto insurance no fault law will be around for at least another calendar year. This has shocked many drivers who feel like it is time to follow other states and rid themselves of a massive problem. Governor Rick Scott has gotten a lot of pressure put on him by members of the medical industry to preserve the no fault automobile insurance law.
He is likely going to sign a bill that would just not allow for acupuncture treatments and massage therapy after automobile accidents. This action will not do very much to get rid of automobile insurance fraud though. There were a few options that Gov. Scott can explore. The first is to get rid of PIP insurance altogether and then just require bodily injury liability car insurance coverage. Currently, more than three quarters of drivers in the state of Florida already have this type of insurance coverage so it would be helpful financially to them and the state itself.
The second option is to get rid of the automobile insurance no fault coverage and then just require medical payments coverage in conjunction with liability insurance coverage. The point of any legislation needs to be to reduce fraud and costs. The medical industry and the insurance association still want the no fault insurance law in place so that they can make as much money as possible. If it is not, then they have less insurance claims to submit.
Times are tough today especially for hospitals which are mandated by law to treat patients even if they cannot afford to pay for their medical bills. The financial benefits for drivers would be substantial. In 2003, Colorado made the switch and does not have a no fault law in place any longer. After nine years, each driver saves about $322 dollars per year. This is a huge amount of savings for already cash strapped individuals in the state.
Because Florida’s auto insurance premiums are so high, the change could net their drivers hundreds of dollars in savings as well which many drivers are in favor of. The term no fault is being exploited by criminals who just want to make quick buck. They know how to play the system and make as much money as possible. They also know that members of the medical and insurance communities will always put pressure on state politicians to keep the law in place so that they can continue with committing auto insurance fraud as often as they want.
Out of fifty states, there are only ten that still have a no fault auto insurance law. Most drivers will pay on average $3,000 for their PIP coverage that would only yield them $10,000 in benefits. Most drivers think that this requirement is not a smart one and only wastes their financial resources. The point of having automobile insurance coverage on your vehicle is to lessen your financial liabilities in the event that you are at fault for an automobile accident.
Now, it seems as though drivers view their no fault law as a financial liability to them. Basically, the law has cost them more money in car insurance premiums and criminals are using the law to make money which costs them money for paid out claims. With this being an election year, many drivers hope that 2013 will bring some much needed changes to produce car insurance reforms that will save them money. Hopefully, their distaste for the no fault insurance law will finally resonate with state politicians so that changes can be made.