It’s election time, and the amongst the key issues that Florida voters must strongly consider is whether our State electorate should continue fruitless and futile attempts to reform PIP insurance or switch to a Mandatory Bodily Injury system, as the overwhelming, vast majority of state in this country have. Here is a compelling case why BI should be implemented over PIP.
In 2007, the National Association of Insurance Commissioners did a study and found that the average auto insurance premium, based on purchase of state-required minimal coverage, in California, the price was $800.00, in Florida, it was $1,043.00. Keep in mind, the insurance industry claims that PIP costs in Florida skyrocketed even further from 2007-2010, so this number is probably even more disproportionate today.
California is a fault/tort state, unlike Florida’s No fault/PIP system. They require a minimum of $15,000.00 per claimant/$30,000.00 per accident in BI coverage. This is versus Florida, which does not require any BI coverage, and only mandates PIP and Property Damage Liability coverage.
The point, you get more coverage, and a superior coverage, at a cheaper price in California, where historically, everything (gas, food, etc.) is more expensive.
It is a great example of how Florida has fallen behind other states in the auto insurance market, and why PIP should be scrapped to create a healthier insurance market, for consumers and insurers.
I would also look at the report of AIA, an Insurance Trade Group, who examined the legislative option of repeal of PIP for BI, and found it to be the most viable option for auto insurance reform in Florida.
Another good case study is Colorado, which has seen auto insurance rates drop 35%, since dumping PIP for BI in 2007. No wonder industry commentators from Colorado are literally laughing at Florida’s supposed PIP reforms – There is 10 years of evidence of a real solution from Colorado, and our Legislature simply ignored it.
Knowledge Equals Power in Orlando Auto Accident Cases
The evidence, from these states which have BI instead of PIP, is that rates are cheaper, attorney fee disputes are eliminated (what industry claims is causing PIP to be so high), and fraud and abuse is minimized. Thus, Mandatory BI is a proven solution to lowering auto insurance premiums. Florida should look to repeal PIP and implement the same. Tell your State House Representative and Senator today.