Florida is one of the 12 states has a no-fault insurance system, which means that drivers are required to have personal injury protection (PIP) insurance coverage which covers them regardless of who caused the accident.
However, recently the Florida legislature brought Senate Bill 54 to the floor for consideration, which would eliminate the state’s no-fault insurance requirement. Currently, a claimant’s insurance company is required to reimburse their bills, regardless of who was at fault. Critics of the current system contend that the no-fault framework instigates fraud – and that the coverage limit is insufficient to truly cover the average cost of bills incurred. However, there are concerns with the new proposal as well. Therefore it is important to understand what those changes might entail.
The new law would require drivers to be insured for bodily injury liability coverage, which would permit insurance companies to provide up to $25,000 for collision-related injuries or death or up to $50,000 for crashes involving two or more people. The new law would keep the current $10,000 limit for property damage. However, it will affect the coverage limits for commercial motor vehicle coverage and garage liability. Perhaps the change with the largest impact is that repealing the no-fault standard will eliminate the pain and suffering damage limitations.
As the law stands, many who experience accidents in Florida often are forced to seek damages outside of the no-fault insurance system. The new proposed system will include best practices standards for insurance companies to settle insurance disputes. However, the legislation also incorporates new conditions the insured individual must meet before trying to make a claim.
The new provisions will include:
- Detailed information regarding the details of the loss, the claimant, and the insured.
- Both the factual details and the legal basis of the fled claim.
- Specific details about the claimant’s injuries, medical treatment protocols, and a rundown of current and future likely damages.
- A settlement dollar amount, which will not exceed the policy limit.
An agreement by the insured to release the insurance company from further liability. Claimants must meet these strict requirements to recover damages from the insurance provider. Those filing a claim should be aware that the legislation will limit an insurer’s liability for bad faith if the company reimburses the set policy amount within a month of receiving the claim.
If you or a loved one has experienced severe injuries in a car accident under the no-fault insurance system, contact the Sarasota and Tampa area attorneys at Probinsky & Cole. Our car accident attorneys are well-versed in all aspects of personal injury law, including those cases which involve seeking damages from an insurance company
