Changes to the PIP Law: How Are You Impacted?
As of January 1, 2022, the PIP law is going to change in Florida. PIP laws, or personal injury protection, have ended. The regulation, known as Senate Bill 54, will make it harder for Floridians to sue their insurance companies for bad faith. The reason this bill became so popular is that it will reduce rates for most Florida drivers by some 5 or 6%. Some people may even be able to see savings up to 15%. Opponents of the bill have stated that it will raise rates.
If you were recently involved in a car accident, contact SteinLaw!
What is PIP Insurance?
Personal Injury Protection, or PIP insurance, is known as no-fault insurance in other states. This is the insurance that helps to cover expenses such as lost wages, medical bills, and even funeral costs after a car accident, no matter who is at fault for said accident. There are different terms for this, and different requirements, across the United States. In Florida, the laws have constantly been under scrutiny.
If you are involved in an accident, PIP insurance helps to cover your medical expenses as well as your injured passengers, even if you were at fault for the accident. If you have PIP insurance and were involved in an accident while you were walking outside, the coverage may also help pay for your injuries.
At SteinLaw, our lawyers can help you understand your legal rights.
How the New Bill will Alter After Removing PIP Coverage?
With the Senate repealing the state’s current no-fault law requiring drivers to carry PIP insurance coverage, let’s take a look at how the bill will change.
The bill (see below) will remove “Personal Injury Protection” and “and, if required, Bodily Injury Liability.”
“Under penalty of perjury, I …(Name of insured)… do hereby certify that I have …(bodily injury liability and Personal Injury Protection, property damage liability, and, if required, Bodily Injury Liability)… insurance currently in effect with (Name of insurance company)… under …(policy number)… covering …(make, year, and vehicle identification number of vehicle)…. …(Signature of Insured)…”
In summary, Florida will not require PIP coverage but will require Bodily Injury Liability coverage, which means that every Floridian will have a new insurance plan starting January 1, 2022.
What Is Not Covered by PIP Insurance?
There are a few different things that your personal injury protection insurance won’t help cover if you are involved in an accident:
- Any property damage
- The injuries of another driver in a collision
- Any injuries that you get while you are committing a crime, like speeding or driving without a valid license
- Injuries you had in an accident where you were driving for payment (ie. Uber, Lyft, etc.)
As of the end date of PIP insurance, your contract with your insurance company may change. The lawyers at SteinLaw can assist you with understanding your new coverage.
No-Fault vs At-Fault
The key difference between at-fault and no-fault insurance policies for most drivers and with most insurance companies is whether the victim has a right to sue at any time during the process. Another main difference is who pays for the injured party’s damages.
No-fault insurance is said to help reduce insurance costs by limiting small claims from the court system. Through no-fault insurance, each company will compensate the policyholder for their minor injuries, no matter who was at fault for the accident.
Some other states have recently revised their laws, so the process is easier for people who are simply victims of accidents. This will help people who are not at fault to be released from their obligations, particularly in egregious cases where the other driver was impaired while driving. They are under no obligation to show that the other driver was at fault for the accident before they receive compensation.
It is important to note that there is some limited right to sue in certain cases. People are allowed to sue for non-economic damages. This depends on your state. There is a threshold in some states (for example, $300,000) whereas other states require specific types of injuries or damages.
In many no-fault insurance claims, there is no need for litigation of any kind. Each victim received payment for wages or medical expenses under the applicable law. There may also be some kind of gap coverage with their own medical or auto insurance.
Need help understanding your coverage and legal rights? SteinLaw can help.
How Will the At-Fault Insurance Affect Me?
Now that the Senate Bill 54 law has been signed, motorists will need to have an insurance policy that provides $25,000 coverage for a single person injured in an accident or $50,000 when two or more people are injured, and $10,000 for property insurance damage caused by a crash.
The new bill requires insurers to follow a set of specific actions, so they can prove good faith. The third-party claimants will need to submit a demand for settlement with the insurer’s policy limit in exchange for any and all further liability against the insured. They also need to obtain a judgment in excess of policy limits against the insured.
A claimant is not able to condition the acceptance settlement demand other than exercising the right to examine the insured for up to two hours under oath.
Need A Florida Car Accident Lawyer?
If you are in need of a car accident lawyer, look no further than SteinLaw.
Our legal team at SteinLaw is ready and able to help car accident victims, particularly as the laws change. If you have been injured, the next few years are going to be rough physically, and legal proceedings only add to that stress. We can help to make the process much smoother and make moving on with your life that much easier.
Unlike many of our competitors in the state of Florida, we make sure our clients have direct access to our attorneys. We also ensure that everyone on our team is up to date on the latest laws and how they impact our clients. One of our top priorities is making sure that our clients feel supported throughout the legal process and treated with the respect and dignity they deserve.
We want to make the legal process as painless as possible. In some cases, the laws add complexity to protect organizations and institutions, not the drivers in Florida. So, we have made it our goal to help you get the justice you deserve.
To find out more about how we can assist you with any personal injuries, including car accidents and other personal injuries, contact us today by filling out our form or calling 877-783-4652.
If you’ve been injured in a car accident, contact SteinLaw today!