In Florida, the lack of car insurance liability laws is costing drivers cash. In fact, last year, the average family with two cars was charged almost $100 more for car insurance than the year before. The reason is the high level of fraud with PIP insurance, or personal injury protection, in the sunshine state. Fraudulent PIP claims are causing the insurance companies to charge even drivers with spotless driving records more and more in insurance premiums each year.
Legislation May Offer a Solution
State minimum car insurance details vary from state to state, and in Florida motorists are required to carry PIP insurance, but not bodily injury liability insurance. The root of the problem lies in the car insurance details: PIP coverage is no-fault coverage. This means that the insurance company pays out to cover the costs of a driver's injuries from a collision or other accident, no matter who is at fault. In contrast to car insurance liability claims, PIP claims do not involve an investigation into who was responsible for an accident – making it easy to file fraudulent PIP claims.
According to Governor Scott and Chief Financial Officer Atwater, the situation is costing honest, responsible Florida drivers too much and resulting in even more uninsured drivers because many people simply can't afford the high premiums. That's why some Florida lawmakers are looking to change legislation to make PIP coverage optional and bodily injury liability mandatory. However, others oppose the idea due to the amount of time usually required for litigation in car insurance liability cases.
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