In 1971, the State of Florida became only the second state in America to adopt an automobile insurance plan that was no-fault. It took effect in 1972. At this point, it was called the Florida Automobile Reparations Reform Act. Since then, the Act has changed in name if content, becoming known as the Personal Injury Protection (PIP). Pip insurance coverage became mandatory in Tampa and other several cities in FL. This is a brief history of how we got to here from there.
PIP Insurance: Its Legislative Intent
The rationale behind legislating PIP insurance was iterated in 1974 by the Florida Supreme Court. In a ruling concerning Lasky v. State Farm Insurance Company, the court stated that this no-fault law was intended to:
*Place the responsibility for compensating individuals for personal injuries resulting from vehicular accidents was to fall squarely on the shoulders of the insurer of all drivers involved
*Reduce courts from being clogged by limiting lawsuits
*Decrease the premiums paid to insurance companies
*Put an end to recovery inequities under tort law
The act was based on holding everyone responsible and trying to make the system fair for everyone.
Over Three Decades of PIP
In 1982, the act underwent a name change. It became the Florida Motor Vehicle No-Fault Law. The name PIP arose because everyone who owns a vehicle in Florida must have automobile personal injury protection (PIP). Failure to purchase a minimum of $10,000.00 is a violation of the law.
Over the decades, reforms have been enacted. The Motor Vehicle Insurance Reform Act of 1988 specifically addressed the problems resulting from uninsured drivers. In 1989, legislation increased the amount available for funerary expenses. Almost 10 years later, changes addressed the billing parameters for doctors (30 and 60 day limitations).
Major alterations, however, based on the need to decrease the perpetration of fraud, came in the early 20th century. Lawyers who specialize in this field, including those at Shuster & Saben who serve Miami, Tampa and Jacksonville, have continued to watch the actions of the legislature closely. Some lawmakers and attorneys have backed intentions to scrap PIP insurance coverage completely.
PIP Insurance Coverage in the 21st Century
In Florida, PIP remains the law. Anyone who drives a vehicle with four or more wheels must be covered. Failure to do so has dire consequences. So, too, can trying to collect from the insurance companies. While the intent of PIP insurance coverage was to help those suffering from personal injuries resulting from a car accident, if you find yourself in one in Tampa, you better call on a law firm such as Shuster & Saben, to make sure you do actually collect.
