MIAMI — The sunset of the Florida No Fault Insurance Law will occur on Sept. 30. After that, there will be no mandate for a motorist to carry automobile insurance. Floridians will join three other states that have no statutory requirement for vehicle owners to carry any automobile insurance at all.
Based on information obtained from the Florida Department of Highway Safety and Motor Vehicles, there are 12 million vehicles registered in Florida. Four million of those vehicles are currently insured without bodily injury coverage.
What does this mean to the other eight million vehicle owners who do carry more than the current "required minimum" amount of insurance? Some carriers will state that individuals will no longer have to buy personal injury protection (PIP), which will save policy holders money. In fact, for the other motorists it will then become very costly.
If a vehicle is hit by another vehicle after the currently mandatory personal injury protection is no longer required, it means there is a chance the other motorist is uninsured. Owners of newer vehicles will probably carry collision coverage with a deductible. This means the deductible is out pocket if there is damage to the vehicle and it must be repaired.
Of course, a motorist can sue the other party for expenses and the insurance carrier will try to collect the money that they paid to repair the vehicle. If the other party could not or would not pay for the repair, even if the lawsuit was won, everything would go to a collection agency.
If insurance companies have to pay claims for accidents caused by the 33% of drivers who carry no insurance, all legitimate policy holder rates would increase to offset the funds that were not collectible from the uninsured drivers.
Source: Miami Herald