Are You Ready? No-Fault Insurance Will Expire In 2 Weeks

SEBRING - The Legislature won't start its special session until Oct. 3, so Florida's no-fault insurance law will sunset on Oct. 1.

That means the car heading toward yours may not be fully insured, state officials have said, and portions of your own insurance may expire.

Motorists, therefore, need to ask themselves two questions:

* If an insured motorist strikes my vehicle, will my insurance pay the property damage and personal injuries?

* If I run into another vehicle, do I have enough insurance to protect me from lawsuits?

"They need to know what their insurance companies are going to do," said Dave Westberry, deputy executive director at the Florida Department of Highway Safety and Motor Vehicles. "Will the insurance company send a refund, or will they still offer the coverage?

"We try to stress to all consumers, they've got to take time to look at their policies, sit down with their agents, and ask, what coverage do I have?" Westberry said.

Personal Injury Protection

Personal injury protection insurance is a component of the expiring no-fault system. It covers medical expenses, lost wages, death benefits, and services such as child care, housekeeping or yard work.

Do vehicle owners need to replace that coverage?

"If you have Medicare or health insurance, you probably don't need PIP," said Justin Glover, a State Farm Insurance spokesman for Florida.

State Farm is continuing to offer PIP for customers until their policies expire, but Glover recommends policyholders call their agents and drop the remainder of PIP coverage.

"Do you really want State Farm to have more money?" he asked. PIP can be replaced with medical payments coverage. Glover said a $10,000 limit on medical payments - which is the current PIP limit - should cost less money. Medical payments covers the medical and funeral expenses of occupants regardless of who is at fault.

Glover and State Farm are proponents of ending PIP. "In Colorado, we lowered our premiums nine consecutive times after PIP expired. Our neighbor to the north, Georgia, hasn't had PIP since 1991. We don't need a mandatory system. We're better off getting rid of it."

What Should Replace PIP?

Florida should require mandatory medical benefits insurance for owners and operators of motor vehicles regardless of who is at fault in the accident, said Alex Sink, Florida's chief financial officer.

"This would particularly help the 20 percent of Floridians that currently lack health insurance," Sink said.

Florida will be the only state without a requirement for drivers to have bodily injury liability coverage if the present no-fault insurance system expires, Sink said last week.

Rich Rasmussen, a spokesman for Safety Net Hospital Alliance of Florida, said hospitals, which claim they may lose $350 million a year treating uninsured accident victims, will push to re-establish no-fault or some other form of mandatory coverage.

Proof Of Insurance

After Oct. 1, drivers must demonstrate they have liability insurance when they register a vehicle and when they are in an accident, said Westberry, of the Department of Highway Safety and Motor Vehicles.

A police officer might ask for proof of insurance on other occasions, but a motorist can be cited only on those two occasions, Westberry said. "That's our interpretation of the law.

"We're going to be educating the law enforcement community to make sure they understand these changes," Westberry said.

More info: Florida Department of Financial Services, http://www.fldfs.com.

The Associated Press contributed to this story

Frequently Asked Questions

What happens if I am at fault in an accident, and my expenses exceed the limits of my medical payments coverage?

Under an at-fault (tort) system, the negligent party is responsible for damages. Either you or your health insurance will pay for your medical expenses that exceed the limits on any medical payments coverage under your auto insurance policy.

Will I have to go to court to get my claims paid if I am injured by a negligent driver?

Possibly. Auto insurance companies may settle based on an acknowledgment of the at-fault driver in a particular accident. If there is a dispute about who is at-fault or to the extent of the damages, court action may be necessary.

If I have health insurance coverage, do I really need auto insurance coverage as well?

Yes. Purchasing auto insurance coverage will help protect you if you are at fault and liable for an accident. Keep in mind that your health insurance may pay for your medical treatments after an automobile accident, but co-pays, deductibles and coverage limits may apply. Your health insurance will not cover medical claims of other persons injured in an accident.

If I am in an accident, will my lost wages be covered?

If you are in an accident, some lost wages may be covered if you are not at fault in an accident and the at-fault driver has Bodily Injury Liability coverage. Some lost wages may be recovered if the at-fault driver does not have Bodily Injury, and you have Uninsured Motorist coverage.

What does Property Damage Liability cover?

Property Damage Liability coverage pays for damage that you, or anyone covered under your policy, cause to another person's property through the use of an automobile. The damage may involve a parked, running or rolling automobile.

Property may include a fence, telephone pole, building or animal. This coverage may apply even if you drive someone else's automobile.

Source: Florida Department of Financial Services