Auto insurance reform in Florida comes under fire

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Consumers argue that provisions are too harsh for the innocent

Earlier this month, a number of auto insurance reform measures took effect in Florida. State legislators had been working to enact auto insurance reforms to combat the significant problem of fraud the state had been facing for years. The auto insurance reform law that was passed earlier in the year has made drastic changes to the auto insurance industry and has imposed significant limitations on the claims benefits consumers can receive. The law has been in effect for a whole month, it is coming under fire from consumers who claim to be suffering from its provisions.

Auto insurance reform limits the care consumers can receive

Some consumers are calling the auto insurance reform measures unconstitutional. The measures are part of 150 new laws that went into effect in the state in July, some of which expand the authority of Governor Rick Scott. The auto insurance reforms, in particular, do not expand Scott’s authority, but do impose limitations on the type of medical care consumers can receive if they have been in an auto accident.

PIP payouts capped at $2,500 unless emergency condition is identified

According to the auto insurance reform, victims of accidents can only receive care and therapies from designated sources that are being highly regulated. Florida officials claim that this measure is meant to combat the fraud that had been running rampant throughout the state. The law has also imposed a limit on the personal injury protection (PIP) benefits consumers can receive, capping these benefits at $2,500. This limitation is waived if an emergency medical condition is identified and declared by a qualifying medical professional.

Consumers claim that provisions of the law unjustly penalize those that have not committed fraud

Florida’s insurance companies have been working to inform consumers of the changes made to the state’s insurance laws. Those affected have expressed dissatisfaction with the auto insurance reform, claiming that its measures are akin to punishments for those that have never committed auto insurance fraud before.

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