Florida may do away with its no fault auto insurance system

No fault system could come to an end in 2019

Florida lawmakers are considering putting an end to the state’s no fault auto insurance system. New legislation could put an end to this system in 2019 and is meant to address the increasingly problematic issue of insurance fraud. Insurers have faced fraud in the state for some time, with some suggesting that the no fault system is to blame. Fighting fraud is becoming a major priority for state officials, who want to see premiums come down for the state’s drivers.

State officials champion for changes to state’s insurance system

In 2012, Governor Rick Scott and Chief Financial Officer Jeff Atwater began calling for changes in the no fault auto insurance system. State officials are now concerned that insurance premiums will not be going down any time soon. The state’s no fault system has been in place for several years, during which time, auto insurance premiums have steadily increased. This is largely due to insurance fraud, which has lead to financial losses for insurers.

No fault system had been considered less problematic in the past

auto insurance  policy carThe no fault system was designed to make insurance claims less adversarial than lawsuits. Under the system, consumers are required to have personal injury protection, which includes $10,000 in medical coverage. State officials have begun questioning the limits of this coverage, however, and recent efforts to fight insurance fraud have lead to more restrictions in coverage for drivers.

Changes to the state’s no fault system have been met with legal challenges

Combating insurance fraud has been a difficult issue for state officials. Making changes to the state’s no fault system has resulted in legal battles in the past. In 2013, a Leon County circuit judge determined that the state’s insurance laws prevented people with injuries from adequately using their coverage to pay for services rendered by acupuncturists and massage therapists. The ruling was overturned, but it highlighted issues that exist in the state’s insurance requirements. Whether or not the state’s no fault auto insurance system will be put to rest is uncertain and any changes made to the system may take years to take effect.

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