Recommendations for legislators

To truly make this new legislation work for the benefit of consumers, legislators should consider the following:

The elimination of PIP creates its own new set of challenges. While it is one less coverage that will be prone to fraud, the shenanigans we see today will simply be pushed to BI and UM (uninsured motorist) line coverages, so any savings will be dubious at best.
We need to modify the negligence law so that parties more than 50% at fault for a loss are barred from recovering damages from a third party. Currently, under Florida's pure comparative negligence doctrine, a person who is 99% at fault is still allowed to sue for damages.
No pay, no play. Florida needs to bar uninsured motorists from the recovery of non-economic damages, a solution effectively implemented in several states.
Cap attorney fees.
Cap tort damages for "pain and suffering." Include a "loser pays" provision that applies to not only the plaintiff but their counsel.
Allow "bad faith" only in the rare situations in which an insurer truly does not honor its fiduciary duties. Enact penalties for trial lawyers who engage in so-called bad faith "setups."
Allow a reasonable amount of time to investigate suspicious claims.
Give law enforcement the teeth necessary to pursue fraudsters while holding insurers harmless during their investigations.
Enact caps associated with Medicare and/or workers' compensation and on treatment for soft tissue injuries, which comprise the vast majority of cases clogging our courts.
While the proposed legislation is well-intended, it is unclear if there will be a quantifiable benefit to Floridians. Two things we do know: staged accidents will continue at an alarming rate and, if prior legislation to fix auto insurance in the Sunshine State is any indication, premiums will not decrease.

Additional steps needed

This is precisely why there are additional steps that the legislature should take to ensure a truly meaningful bill that will benefit consumers. By understanding the greater problem, legislators can give teeth to whatever bill they ultimately pass. Getting rid of PIP is the first step, but do not think for a second that rates will decrease or fraud will go away unless a bigger, bolder approach is taken.

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