1st January 2013 will herald changes in the auto insurance for Florida


A new auto insurance law is set to take birth in the state of Florida starting January 1st 2013. This is an effort by the auto insurance companies and the government to curb the growing menace of auto insurance fraud in the state that is costing the insurance providers billions of dollars in the form of claim reimbursements each year. Under the new law that is all set to take birth, there will be certain significant changes made to the personal injury protection plan.

The legislation will roll out in two phases. The first phase of this new legislation did come into play on the 1st of July, 2012. However, there were many more changes that needed to be implemented. . Most of the significant changes will be brought into force at the dawn of 1st January, 2013 and will focus on implementing the changes to the PIP plan. The changes to this plan were mandatory since it has a lot of loopholes that needed to be plugged. As per the new regulations that will come into effect, not all the passengers and drivers will be entitled to the entire amount of $10,000. The entire amount will be reimbursed only in case of emergency medical conditions caused due to the accident.

The new legislation has also given a specific definition to the term “emergency medical condition”. It refers to the medical condition in the patient which reveals itself in the form of acute symptoms that are severe enough to warrant medical attention, failing which the patient’s health may be jeopardized and could lead to impairment of certain bodily functions or organs.

The personal injury plan limit for injuries that require the services of a chiropractor or physical therapist will now be limited to $2500. Irrespective of non-emergency or emergency medical conditions, acupuncture and message therapy will no longer be a part of the personal injury plan.

There are a few controversies that are associated to this new regulation. While auto insurance providers say that that this will give insurance policy holders less flexibility, consumer advocates opine that it will restrict treatment options. However, this move could bring about reduction auto insurance premiums that may come as a respite to many.