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FOR IMMEDIATE RELEASE
LAWMAKERS MUST PUT CONSUMERS FIRST IN ANY REPEAL OF PIP SYSTEM
TALLAHASSEE, Fla. (Jan. 10, 2018) – The Florida Senate Banking and Insurance Committee today took an initial step toward repealing Florida’s fraud-riddled No-Fault/PIP auto insurance system with the passage of Senate Bill 150, filed by Senator Tom Lee (R-Brandon). If enacted, the existing No-Fault/PIP system would be replaced in 2019 by a new fault-based system requiring all motorists to carry bodily injury (BI) coverage of $20,000 per person/$40,000 per occurrence and mandatory medical payments coverage of $5,000. The BI limits are increased to $30,000 per person/$60,000 per occurrence after three years.
“If the Senate’s intent is to manage the cost of auto insurance for Florida drivers, high mandatory minimum levels of coverage, mandatory medical-payments and a new system without a third-party bad faith fix is not the solution,” stated Michael Carlson, president of PIFF. “If we move from No-Fault to a tort-based system, we urge lawmakers to protect consumers’ freedom of choice by allowing the market to determine the right mix of coverage limits and price.”
As the Senate considers this measure, PIFF said it urges members to carefully weigh how moving to a new system will impact consumers, and to consider key market-based principles. According to the organization — which represents 45 percent of the private passenger automobile insurance market and more than 20 percent of the private homeowners’ insurance market — any repeal of PIP must avoid unnecessary cost increases, such as high BI limits and mandatory medical payments coverage, and should address third-party bad faith litigation, which is a cost driver that could increase auto insurance premiums.
“As the debate on repealing PIP unfolds, PIFF is committed to working closely with legislators to ensure that Florida’s motorists receive the best coverage at the best prices possible, while avoiding unnecessary mandated coverages and litigation costs that drive up the price of auto insurance for everyone,” Carlson added.
The Personal Insurance Federation of Florida (PIFF) is the leading voice for property and casualty insurance companies offering personal lines insurance products in Florida, whose mission is to provide Floridians with a dynamic, efficient, and competitive marketplace for these products. PIFF represents 45 percent of the private passenger automobile insurance market and more than 20 percent of the private homeowners’ insurance market. Its members include the Allstate Insurance Companies, Farmers Insurance, the Progressive Group of Insurance Companies, and State Farm Insurance Companies. Follow us @PIFFNews. Visit PIFF.net to learn more.