Opponents say no-fault repeal would punish hospitals, poor
Repealing Florida’s nofault auto insurance system might eliminate barriers to “pain and suffering” monetary awards for accident plaintiffs and attorneys, but premium savings for policyholders will be minimal, fraud won’t go away, and hospitals and low-income drivers will suffer, opponents say.
Legislative bills to replace requirements that drivers buy $10,000 in personal injury protection coverage — in place in Florida since 1979 — are gaining momentum in the House and Senate this year. If enacted, PIP insurance would no longer be available and vehicle owners would instead be required to buy higher levels of bodily injury liability coverage.
Repeal would eliminate a basic level of coverage that all vehicle owners are required to buy to pay for their own emergency medical care after a crash. Instead, vehicle owners would be required to buy liability coverage that would cover occupants of other vehicles.
That opens the door for more lawsuits, according to opponents.
Kim Driggers, assistant general counsel for the Florida Chiropractic Association, said she knows of no outcry from policyholders to change the current system. Rather, the major proponents for repeal are trial attorneys who want the ability to pursue the responsible party, she said.
The Florida Justice Association, a trade organization of trial lawyers, said society has a “moral imperative” to assign financial responsibility to an at-fault party.
But what attorneys really want is to pursue more financial awards for pain and suffering, which would entail eliminating the PIP law’s requirement that victims prove their injuries are permanent.
In addition, the bills would require vehicle owners to buy more than $10,000 in liability coverage and that would create a bigger pool of money for the attorneys to pursue. The House version would require vehicle owners to buy at least $25,000 in coverage for injury or death of one person and $50,000 for two or more persons beginning next Jan. 1.
The Senate would phase in higher coverage limits before requiring $30,000 for injury or death of one person and $60,000 for two or more persons by 2023.
A repeal will enable attorneys to file lawsuits more easily and in greater volume, Driggers said.
Michael Carlson, president of the Personal Insurance Federation of Florida, which represents several major auto insurers, also said the repeal effort would be a boon to trial attorneys. Carlson has said his organization will support the bill only if it restricts’ attorneys’ abilities to sue insurers over allegations insurers acted in “bad faith” in dealing with patient claims.
Neither bill includes bad faith restrictions, and the Senate bill includes another provision the foundation says it can’t support — a requirement to buy $5,000 in emergency medical coverage.