Volume 4 Number 52
December 28, 2007


Since the Florida Legislature passed a bill to reform Floridaís Motor Vehicle No-Fault Law, citizens should know that Florida law will once again require drivers to carry Personal Injury Protection (PIP) insurance effective January 1, 2008.

As part of the legislation restoring PIP coverage, insurance companies must notify policyholders how  the mandatory restoration of PIP/no-fault will impact them. The notice must clearly inform the policyholder on these points:

  • Beginning on January 1, 2008, Florida law requires drivers to maintain PIP insurance coverage which pays covered medical expenses for injuries sustained in a motor vehicle crash by the policyholder, passengers, and relatives residing in the policyholder's household.
  • If a policyholder fails to maintain PIP coverage, the State of Florida may suspend the policyholder's driver license and vehicle registration.

That means all Florida motor vehicle owners and operators will be required to carry PIP in the amount of $10,000 for losses sustained by the insured or covered person as a result of bodily injury, sickness, disease, or death arising out of the ownership, maintenance, or use of a motor vehicle. CONTINUED

By law, PIP coverage pays the following benefits, up to the $10,000 limit:

  • 80 percent of reasonable and medically necessary medical expenses;  
  • 60 percent of disability benefits for lost gross income and earning capacity;
  • 100 percent of replacement services (such as child care, housekeeping, etc.); and
  • $5,000 per individual death benefit.

If you need assistance, please contact your insurance agent or call our Consumer Helpline at 1-877-MyFLCFO.

 I thought No-Fault went away?
No, the insurance requirements under Floridaís Motor Vehicle No-Fault Law did expire on October 1, 2007, but the requirement for all Florida drivers to carry Personal Injury Protection (PIP) coverage will be reinstated on January 1, 2008, per Florida law.  

  What happens if I am injured by an at-fault driver who does not have auto insurance?
PIP will cover medical payments, up to the limits stated above, for you and each passenger in your vehicle regardless of who is at fault.

  If I have health insurance coverage, do I really need auto insurance coverage as well?
Yes.  By law, you must carry a minimum of $10,000 in PIP coverage and $10,000 in property damage liability coverage.

  Whatís the bottom line?
By law, you must now carry a minimum of $10,000 in PIP coverage and $10,000 in property damage liability coverage.

  If I am in an accident, will my lost wages be covered?

Yes, PIP will cover up to 60 percent of disability benefits for lost gross income and earning capacity, after payment for medical expenses, up to the $10,000 limit.

  What does Property Damage Liability cover and under what conditions?
Property Damage Liability coverage, which is also required under Florida law, pays for certain damage (up to the limit of the policy) that you or anyone covered under your policy cause to another personís property through the use of an automobile. It only covers damage for which you or anyone insured under your policy are legally liable.