Should Florida Repeal the Personal Injury Protection Requirement for Motorists?

Florida requires drivers to have $10,000 of Personal Injury Protection (PIP) to compensate persons injured in accidents regardless of fault and property damage insurance.  PIP coverage provides reimbursement for 80% of reasonable medical expenses, 60% of loss of income and 100% of replacement services, for bodily injury sustained in a motor vehicle accident without regard to fault.  The property damage liability coverage must provide a $10,000 minimum benefit.  A $5,000 death benefit is also provided.

The Florida Office of Insurance Regulation (OIR) indicates that the number of personal injury protection claims has increased during the past four years even though there is no evidence that the number of crashes or drivers has increased.  According to the OIR, the number of PIP claims has increased 28% since 2006, and the payment of claims also has increased during the same time, spiking in the last two years.  Over a four-year span insurers paid $8.7 billion in claims.  The number of PIP-related lawsuits has also increased during that same time period.

Among reasons for repealing the PIP requirement are the following:

• PIP is unfair because it causes people with insurance to pay for injuries caused by drivers with no insurance.
• PIP has serious problems with insurance fraud that make the program too costly.  According to a presentation made by Insurance Consumer Advocate Robin Westcott in November 2011, the amount of fraud in the PIP system totals $910 million annually.

Among reasons for not repealing the PIP requirement are the following:

• Without the coverage, chaos would ensue and courts would be overburdened with cases.
• It’s intended to protect Floridians who don’t have health insurance, and to avoid lawsuits and their costs for minor injuries.

Do you think that PIP requirement should be repealed?  How do you think the PIP system should be amended to deal with the fraud issue and control the costs?  Let us know.