Florida will return to a no-fault auto insurance system on January 1, 2008. Until then, drivers without coverage who are involved in an accident face the possibility of a lawsuit to determine who is at fault and who will pay damages.The law restores a requirement, in place for almost three decades, that Florida drivers hold a minimum of $10,000 worth of personal injury protection coverage. It also resumes a no-fault system that protects motorists from being sued in most cases after an accident.
Insurance companies had argued for the demise of a system riddled with fraud and a lack of controls on disbursements to those making claims as the result of a collision. Meanwhile, hospitals and other medical care providers had expressed concern that, without the requirement, they would be forced to bear the burden of millions of dollars in uncompensated care costs for crash victims who don’t have health insurance. In an attempt to combat both problems, lawmakers have restored the system with a bevy of new anti-fraud controls.
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