In 1971, Florida was the second state to enact a no-fault insurance plan. The Florida no-fault law
was to be used to replace the tort reparations system that was in use at the time. The no-fault law would be used to compensate people injured in auto accidents regardless of who was at fault. This law gave the people the right to claim medical payment for injuries regardless of fault and took away the right to sue for minor personal injury claims. The system would require drivers to purchase personal injury protection (PIP)
The objectives of the law were determined in the 1974 Florida Supreme Court case, Lasky v. State Farm Insurance Company. PIP was intended to make sure an injured person in an auto accident was compensated, and to reduce the burden of reliance on government funds. Also, the law was meant to lessen congestion in the court system, to lower auto insurance rates, and to end the problems related to recovering money for the injured parties under the tort system.
The Legislature enacted some revisions to the law in 2001 and 2003, but the reforms have not repaired PIP: fraud, duplicate coverage, expensive auto insurance rates, and unnecessary medical treatment still plague the system. Because of these problems, the Florida state legislature, in 2003, decided not to renew the law. The PIP statute will expire
on October 1, 2007, unless the Legislature reenacts the law during a special session. Twelve states have no-fault auto insurance laws at this time. There have also been five states that have repealed their no-fault laws.
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