Car Insurance Rates Addresses Florida Personal Injury Protection

In its latest opinion editorial piece, Car Insurance Rates supports Florida lawmakers’ reconsideration of the state’s PIP (personal injury protection) requirement as part of its no-fault system that has ended up costing drivers money.

Online PR News – 29-August-2011 – –, a popular source for complimentary estimates on auto insurance policies, has published its newest op ed piece to voice support for top politicians in Florida rethinking the state’s extant no-fault approach to auto-accident personal injury claims. The current system requires drivers to carry personal injury protection (PIP) as part of their auto coverage, but both the state’s governor and chief financial officer and considering changing that requirement.

“The system in Florida is what we in the insurance industry refer to as a ‘no-fault scheme.’ In theory, requiring all drivers to carry a certain amount of personal injury protection should lower costs by reducing the number of costly lawsuits related to bodily injuries resulting from auto accidents. However, as Florida and other states with similar structures have seen, the end result of a PIP requirement is actually astronomically higher premiums for insured drivers because of rampant insurance fraud,” explained Nathan Ackerman, spokesman for Car Insurance Rates.

As the editorial discusses, insured drivers shoulder enormous costs under a no-fault system. A structure intended to save them money actually ends up costing more because of fraudulent claims that result in sky-high attorneys’ fees, chiropractor costs, and physician bills. Certain professionals participate in PIP fraud rings because the claims are fairly easy to fake when they involve difficult-to-prove conditions like soft-tissue injuries.

“Our endorsement of the abolition of PIP requirements benefits both policyholders and carriers because those are the two parties that end up paying in a no-fault system. Carriers have to pay out millions of dollars of fraudulent claims, and they then turn around and pass the costs on to policyholders trying to honor the law by carrying the appropriate amount of PIP coverage. Florida is beginning to see what the rest of the country needs to soon—mandatory PIP coverage only breeds fraud and higher premiums,” said Mr. Ackerman.

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