Houston Personal Injury Lawyer

Some drivers breathed a sigh of relief that Florida’s no-fault auto insurance law will return in January 2008. The new no-fault law, signed by Gov. Charlie Crist on October 11, 2007, will require drivers to buy at least $10,000 in personal injury protection, or PIP, starting Jan. 1, 2008.

Consumers who pay for their own health insurance or have it provided through work could save some money by not purchasing PIP for three months. Paul Jess, president of the Florida Justice Association and lobbyist for the personal injury lawyers, has temporarily dropped his PIP coverage because he has health insurance. However, Jess encourages every driver to carry ample bodily injury liability, which covers medical expenses, serious injuries, for another driver and passengers if you cause an auto accident, and uninsured motorist coverage, which pays your medical bills and damages to your vehicle, if you have an accident with a driver that carries no insurance.

Insurers have been ordered to notify their policyholders by November 15, 2007 that PIP coverage will automatically be added to their policies on January 1, 2008 and of the policy premium increase of the added coverage. ”A lot of policies are being sold without PIP,” says Michael Johnston, Southeast region president for Gainsco Auto Insurance, a Texas-based company that sells nonstandard coverage throughout Florida. ”We’re selling the minimum required. People became informed pretty quickly and many realized they didn’t have to buy PIP,” he adds. Johnston also noted that the company is offering medical payments coverage that drivers can buy right now if they don’t have health insurance to cover medical care after an accident.

”Those drivers that purchase insurance only because they have to will want to wait until Jan. 1 to buy PIP, no matter what you explain to them. Those that want protection ask more questions, and want to keep their PIP and already have bodily injury coverage,” said Arnie Vasquez, who owns All Motors Insurance Agency in Miami. Vasquez is also the president of the Specialty Agents of Florida, a trade group that represents many agents who are with the non-standard auto insurers, those that tend to cover younger drivers, ones with bad credit histories or spotty driving records. These agents were big proponents of revamping and renewing the no-fault auto insurance law.

Pablo Conde, president of A&A Underwriters, an agency in West Miami-Dade, says many business owners aren’t big fans of PIP. The new law will also be imposed on commercial vehicles in addition to the workers compensation insurance, which covers injuries on the job, including auto accidents. ”Many say they don’t really need it, even though PIP benefits would cover the first $10,000 in medical bills” for an employee involved in a car/truck accident at work and then workers comp benefits kick in, says Conde.

The new law will encourage an increase in lawsuits and/or claims of serious injuries in Florida as drivers will no longer have to heed their pain due to financial obligations arising from out-of-pocket expenses incurred by medical bills and lost wages