The expected sunset of Florida's no-fault insurance law on Oct. 1 will not mean that motorists can obtain license plates without property damage liability insurance, but they need not obtain personal injury protection coverage, according to a state spokesperson.
Florida's potential dropping of the PIP requirement led Jared Perlin, president of Ocean Harbor Casualty Insurance, to predict that event would lead to jammed emergency rooms and higher medical costs.
Ann Nucatola, speaking for the Florida Department of Highway Safety and Motor Vehicles, said that "at this point, personal injury protection is to sunset Oct.1. We have interpreted the law to mean you will still need to have property damage liability insurance in the State of Florida and a minimum of $10,000 insurance."
Mr. Perlin, whose company specializes in providing basic auto coverage policies, forecasted that, "the loss of PIP will be extremely costly and inconvenient for Florida consumers. If PIP sunsets on Oct. 1, the number of drivers on the road without insurance will largely increase, thereby cramming emergency rooms after auto accidents."
While he is opposing the law's expiration, other insurers have supported expiration of the no-fault law, arguing that it is costly and leads to fraud.
However, according to Mr. Perlin, "this [sunset] will create an escalation in medical costs for all, and we cannot allow that to happen."
On Friday, Mr. Perlin's company became the second to join the Coalition to Protect Florida's Drivers, a group that is campaigning to have the no-fault auto insurance law extended.
The Coalition said it is calling on Republican Gov. Charlie Crist, Senate President Ken Pruitt, R-Port St. Lucie and House Speaker Marco Rubio, R-Miami to address the looming sunset of no-fault auto insurance in a special legislative session that begins Sept. 18.
Prior to Ocean Harbor, another non-standard auto insurer–Direct General Corp.–joined the Coalition.
Wayne Nesmith, president of the Florida Hospital Association, a leader of the Coalition, said that "Floridians should know that there are auto insurers, like Ocean Harbor, who believe that state legislators must address no-fault in the special session, and not simply allow it to expire."
The Coalition to Protect Florida's Drivers is led by FHA and the Safety Net Hospital Alliance of Florida. It is composed of 38 organizations, including hospitals, emergency care providers, first responders, safety officials, Blue Cross and Blue Shield of Florida, and auto insurers.
The Coalition said it is asking the governor and legislators to either reform and extend the current no-fault/PIP system, or to replace it with some other form of alternative mandatory medical and property coverage for motorists.
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