R.I.P. PIP?

Right now, Florida does not have the right kind of coverage requirements for automobile insurance in my opinion; however, that may soon change. On February 15, 2021 Senate Bill 54 passed its second Senate Committee vote; it looks like it is gaining momentum and might actually become law. This will eliminate Personal Injury Protection (PIP), also referred to as Florida’s famous “No Fault” insurance. The term “No Fault” is thrown around so loosely and so inaccurately, so in my view it is going to be a good thing if this bill passes and becomes law. It will be mandatory to have Bodily Injury (BI) coverage; Bodily Injury coverage is not required in the state of Florida as of now. FloridaSenate.gov states that the bill also creates a new framework to govern motor vehicle insurance claims for bad faith failure to settle. The bill provides that in a third-party action for bad faith failure to settle not brought under statue 624.155, Florida Senate., the insurer is not liable for bad faith if the insurer tenders policy limits within 30 days of receiving a demand for settlement. “Florida is one of only two states in the country that does not currently require drivers to carry liability coverage that would immediately kick in if they cause the bodily injury or death of another person while operating a motor vehicle,” said Senate President Wilton Simpson (R-Trilby). “PIP coverage is outdated and doesn’t protect consumers. It’s the right time for Florida to move to mandatory coverage for bodily injury liability.”