Florida to host a series of meetings of insurance and consumer representatives to solve problems with PIP system

Florida Car InsuranceThe Florida state government will be facilitating a series of meetings to resolve an issue with the state’s personal injury protection (PIP) insurance law. Insurers, medical professionals, state officials and representatives from a number of consumer advocacy groups will be attending the meetings and working together to find some resolution to the issue. Currently, PIP insurance is required throughout Florida, which has spurred rampant fraud in the state. Through the meetings, the groups will conclude whether the PIP system should be reformed or abolished altogether.

Fraud has plagues Florida’s PIP system for years, which has driven up the price of coverage considerably. PIP insurance is mandatory throughout the state, yet some cannot afford the coverage because it has become too expensive. Governor Rick Scott would like to see the mandate lifted for the sake of consumers. Lifting the mandate will not go over well with the state’s insurance companies who are not keen to open themselves up to any undue risk.

If the mandate is abolished, the state will likely adopt a no-fault system that would handle claims below a $10,000 threshold. This system has already attracted opposition from consumers and insurers who say that while the system will cut down on fraud, it will encourage unscrupulous attorneys and medical professionals to take advantage of the system and ensure that claims breach the $10,000 mark in order to sue motorists and their insurance companies.

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