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FOR IMMEDIATE RELEASE
SENATE PIP REPEAL BILL IS THE WRONG DIRECTION FOR FLORIDA
TALLAHASSEE, Fla. (Jan. 8, 2018) – The Senate Banking and Insurance Committee will soon consider SB 150, which repeals Florida’s decades-old Motor Vehicle No-Fault Law and the Personal Injury Protection (“PIP”) insurance mandate. The bill, filed by Senator Tom Lee (R-Brandon), will be heard in committee on Wednesday, Jan. 10.
The bill makes far-reaching and potentially costly changes to Florida’s auto reparations system. It repeals the current $10,000 mandatory PIP law and requires drivers to buy two new coverages: $20,000 per person/$40,000 per occurrence bodily injury insurance, which increases to $30,000/$60,000 over three years; and $5,000 of medical payments insurance, which is designed primarily to benefit hospitals and physicians.
PIFF members believe that any changes to the PIP law must be consumer-focused, and should embrace the following principles:
• Any new mandatory coverage amounts should be dictated by market forces, and not set so high that the cost of such coverage will result in an increase in the cost of motor vehicle insurance and in turn, an increase in the number of uninsured drivers;
• There should be no mandatory first-party medical payments coverage, which is freely available in the market today, and would be redundant for Floridians who already have health insurance; and
• Any repeal of PIP should include sensible reforms to Florida’s third-party “bad faith” law, which adds approximately $80 to the cost of insurance for each vehicle in Florida.
“We respect the Senate’s prerogative in taking up an important public policy issue like PIP repeal, but this bill overreaches in a way that will increase premiums for many motorists,” stated Michael Carlson, president of PIFF. “For drivers who may otherwise benefit from potential savings created by repeal of PIP, adding a mandatory medical payments coverage will erode these savings. For Floridians who have health insurance and are forced to buy medical payments coverage, this will be a double whammy.”
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.