Motorcycle Crashes Cost Florida Millions. What If PIP Disappears For Cars?

WFTV Channel 9 ran an interesting story yesterday that dovetails nicely with a debate that we will likely see in Tallahassee this session or next concerning the future of Personal Injury Protection (also called "PIP") coverage in Florida automobile insurance policies. The article was ostensibly about the societal costs of motorcycle accidents in Florida.

Since motorcyclists in Florida are not required to insure their bikes (or themselves while on their bikes), when motorcycle crashes occur (and they do occur when folks aren't paying attention to motorcyclists -- which is often) and the motorcyclists does not otherwise have health insurance, the people of the State of Florida usually get left paying the tab for the injured biker's medical expenses. This is not meant to be critical of motorcyclists - the fact remains that a huge percentage of Florida's population does not have (read: cannot afford) health insurance.

The Sentinel reported that in 2009 alone, $190 million in state funds were spent to pay for treatment costs after Florida motorcycle accidents. Despite that large number, motorcycles only account for about 6 percent of all vehicles on Florida's roads.

If $190 million looks like a lot of money, taxpayers should consider what life might look like in Florida without Personal Injury Protection coverage. Personal Injury Protection is currently required to be purchased by every vehicle owner in Florida, and pays medical expenses for those injured in car accidents -- regardless of fault (hence its other nickname, "No Fault" coverage). Insurance companies have been talking about doing away with PIP in Florida for several years, as it is not as profitable for the companies as it used to be, and because the companies claim that they are being presented with a large number of fraudulent claims.

As an experienced Florida personal injury attorney, I know that the problem is that if insurance companies convince the Florida Legislature to make PIP coverage optional, many thousands of vehicle owners will opt out, and will shift responsibility for their medical bills from themselves to the taxpayers of Florida. If 6 percent of all drivers on the roads generated $190 million of taxpayer paid medical expenses in one year, just imagine how the burden of paying the bills of 30% to 40% of the other drivers on the roads.

In today's political and economic climate, it would make absolutely no sense to shift the burden of this care from individuals to the state. However, State Farm, Allstate, Progressive, GEICO, and the smaller Florida automobile insurance carriers have incredible lobbying clout and power in Tallahassee. Due to the money spread around Tallahasee by these carriers, it would not surprise me to see PIP become a thing of the past sooner rather than later.

If you have any questions regarding Florida motorcycle accidents, or how Personal Injury Protection coverage works, please call Orlando accident attorney Kim Cullen at 407-254-4901.