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Don't Forget What Florida Was Like Without 'No-Fault'

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By JOHN LOMEO

Published: September 6, 2007

To truly appreciate the impact of allowing Florida's Personal Injury Protection (PIP) law - also known as mandatory 'no-fault' automobile insurance - to expire, one must understand what it was like before the law was enacted in 1971. As an auto-insurance claims adjuster in Florida prior to the implementation of PIP, I know exactly what it was like and why PIP was such a welcome relief.

Prior to PIP, estimates had 60 percent of Dade County motorists driving without insurance, and only those with medical payment coverage or private health insurance were covered for injuries caused by an accident. The many injured individuals who did not have health insurance were placed into the collections system for nonpayment of medical bills. To add insult to injury, any settlements reached through litigation with the insurer of the person who caused the accident were often at a significant discount because of the pressing need to satisfy the medical debt.

Adding to the potential financial disaster of the injured was that even with medical-payments coverage and/or private health care, there was no compensation for wages during recovery, leaving many people at or near bankruptcy. PIP provides compensation for lost wages and even burial expenses.

Without PIP and the 'no-fault' coverage it provides, insurance companies scrambled to save money wherever possible. If it was determined by the insurer of the person who caused the accident that there was any negligence upon the part of accident victim, the settlement offer would drop dramatically and the victim would often not recover enough money to cover his or her medical bills.

The reason PIP was implemented 30 years ago was to level the playing field for all injured parties. It makes the well-being of the injured person the clear priority by allowing all qualified injured parties equal access to quality health care without regard to health insurance and without regard to who caused the accident, which is an insignificant detail when emergency care is required.

With nearly 20 percent of Floridians uninsured, it is possible that those who rely only on PIP for coverage would opt out and not carry any auto insurance at all. While the current system may not be perfect, it does offer an equality that did not exist prior to 1971. Certainly, modifications can be made to enhance the system and address allegations of 'fraud' made by some insurance companies. But, like anything else, the learning process is a continual process, and PIP should be kept intact while the Legislature decides what that next step should be. I urge our lawmakers not to let PIP disappear into the sunset on Oct. 1 and take steps to ensure that Florida's motorists are protected.

John LoMeo is a property supervisor for Pearl Holding Group in Fort Lauderdale. He can be reached at jblomeo3@bellsouth.net.

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