Florida Senate Calls For Faultless Abolition Of Auto Insurance

Florida senators are working on a plan to eliminate the state’s auto insurance system.

According to The Tampa Bay Times, the Senate Judiciary Committee recently approved SB 54, a bill that would not eliminate culpability while mandating that motorists wear personal injury coverage.

Under the current no-fault system, drivers in Florida are required to protect personal injury or PIP.

PIP is designed to help motorists pay medical bills after an accident. For decades, Florida state law has set the minimum PIP coverage amount at $ 10,000. Danny Burgess, the Zephyrhills Republican who supports the bill, said that certain amount is irrelevant in modern times.

“The $ 10,000 is a number derived from 1979,” said Burgess. “The number has not changed since then.

Fast forward to 2021, we’re still at $ 10,000. And so, the purchase value of $ 10,000 in 1979, according to the U.S. Bureau of Labor Statistics, is about $ 1,252 today. So you can see that that money doesn’t really go far. “

Maroon car badly damaged in car accident; image by NettoFiguiredo, from Pixabay.com.

The Capitol notes that the Florida legislature has been proposing the idea of ​​ending no-blame since at least 2012. One of the most durable arguments against the current system is the idea that it is extremely susceptible to fraud, at least when compared to alternative types of policy.

If passed, Burgess’s bill would require Florida motorists to carry at least $ 25,000 in personal injury coverage, which would be paid out after an individual’s injury or death. If two or more people were injured or killed in a crash, that amount would add up to $ 50,000.

SB 52 includes other benefits or changes – for example, auto insurers would be responsible for medical payments after $ 5,000.

But like other aspects of the broken health care system in the United States, potential patients would also be responsible for an out-of-pocket contribution – amounts for which get started for $ 500.

Several Burgess Republicans were concerned that raising the minimum limits on insurance policies would have a disproportionate impact on low-income residents – and potentially encourage more people to drive without insurance.

“We need to address the issue of uninsured drivers in this legislation and create a stronger incentive than just a suspended driver’s license,” said Senator Jeff Brandes (R-St. Petersburg). “That is what drives the rates through the roof. […] Ultimately, the fact is that you have to pay hundreds and hundreds of dollars in premiums for uninsured motorists because you have a one in four chance that someone will hit you who doesn’t have insurance. And that is untenable and untenable. And that’s really what drives the rates. “

A recent amendment passed by the Senate on Monday would reduce coverage requirements for lower-income drivers.

Of course, this would mean that low-income drivers would still spend more money on insurance – while receiving far fewer medical benefits than their higher-earning peers.

The Tampa Bay Times states that SB 52 could vote once the Florida Senate resumes its regular session on March 2ndA similar bill – HB 719 – may also be pending in the Lower House.


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