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PIP Reform: You’ve got ridiculous expectations, PIP

PIP Reform: You've got ridiculous expectations, PIPMight want to scrap your plans to get into a car accident after July 1, 2012 because that is when the law will change to effectively reduce your PIP/no fault benefits to $2,500 unless a doctor or nurse practitioner deems you to be in an “emergency medical condition.”

The bill was passed to “combat fraud so the ordinary consumer can realize savings on their premium payments.” We’ve heard this refrain before (i.e. every time damage caps or insurance laws are passed that hurt the ordinary consumer) but it rarely happens! This law provides that insurance companies will have to “explain themselves” if they do not provide a 10% discount on premiums…as if the specter of being embarrassed alone will keep the savings coming. Does anyone really think these insurance corporations are hurting for money? They were among the few industries that reported RECORD PROFITS during the recent great recession.

Does fraud exist in the PIP system? Yes. But punishing the consumer by drastically reducing access to medical benefits is kind of like slashing the budget of your local police department because of a few corrupt cops.

This law will not prevent fraud; it will only hurt the honest consumer who is hurting after a car accident – but not enough to be deemed worthy of more than $2,500 worth of care.

According to FL Consumer Action Network spokesman Bill Newton: “Floridians are in for a rude awakening. Instead of measures aimed at preventing true fraud, we’re left with a bill that pads the pockets of big insurance companies.”

My advice: obtain (or increase) your uninsured motorists coverage; otherwise, if you are hit by someone without bodily-injury insurance, you’re on your own.

Thank your legislature.

If you would like to speak to a miami car accident attorney, please call 800.379.TEAM and ask for Jason Neufeld or he can be emailed directly at