Orlando Car Accident Lawyer Blog

Orlando car accident victims and drivers and those throughout Florida lose the Florida No Fault system. For more than three decades, Florida drivers and accident victims relied on a system where medical bills and lost wages were paid by one’s own car insurance company. There was no need to file any legal claims against the at-fault driver to receive these benefits. Importantly, most delays were eliminated since you did not need to argue over who was at fault and insurance companies suffered penalties for delaying reasonable payments.

The No Fault system also limited a car accident victim’s right to recover non-economic damages such as those for pain and suffering and loss of enjoyment of life. Without No Fault benefits these restrictions should no longer prevent otherwise legitimate car accident victims from receiving compensation from the at fault driver’s insurance company.

Of course, there is so much lobbying going on in Tallahassee that our legislature may consider car insurance during the special session beginning on October 3rd. While the official slate does not have Florida No Fault on it, that does not prevent an amendment so that the legislators can take it up over the next two weeks. Once again, we will have to keep an eye on Tallahassee. In the meantime, Florida drivers and car accident victims must be prepared for a new system, one based on fault.

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While Florida car accident lawyers have been waiting to see if the legislature extends Florida’s Personal Injury Protection Laws (also known as “Florida No-Fault”) during the upcoming special legislative session, legislative leaders have made a surprise announcement. Unable to agree on how to cut more than $1-billion in spending, the legislature has called off plans to hold a three-week special session later this month. The cancellation of the session appears to ensure the death of Florida’s No-Fault insurance laws which will automatically expire on October 1, 2007.

According to media reports, Senate President Ken Pruitt and House Speaker Marco Rubio issued a joint statement that downplayed differences while acknowledging the obvious. "The common denominator for productive special sessions is an initial agreement on a framework for action," they said. "This is even more critical when dealing with the difficult actions associated with budget reductions."

With legislators busy with the budget issue, it is likely that car insurance will take a backseat. Sadly, this reflects the inadequate attention that has been paid to this critical issue which affects so many Florida families each year. While we will continue to monitor this situation, currently there is no evidence that circumstances will change in time to preserve Florida No-Fault insurance laws.

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Florida drivers have been told that if Florida’s No-Fault laws expire on October 1, 2007, there will no longer be any mandatory car insurance for Florida drivers. As Orlando car accident lawyers we had some reservations regarding the State’s interpretation. To no surprise, the state has now advised that Florida drivers will still have to carry property damage coverage even if the Florida Legislature allows the no-fault insurance law to expire.

Previously, the Department of Highway Safety and Motor Vehicles had said that the expiration of no-fault laws or personal injury protection coverage would also eliminate mandatory property damage liability. Now it is clear that property damage insurance will not be affected. However, a more troubling thought is what enforcement mechanism will be available.

Right now, if a driver drops his PIP coverage, state law requires his insurance company to notify the state agency of the cancellation. That way, Highway Safety can go after uninsured drivers. The same enforcement standards may not apply to those who decide to drop their property damage liability coverage; the agency is still looking into it. Of course, if a driver gets in an accident, the state can require the driver to produce proof of property damage coverage or face a second-degree misdemeanor, a maximum $500 fine and 60 days jail time.

We have written before about the need to come up with an appropriate solution to Florida’s car insurance needs. Perhaps during next month’s special legislative session an answer will result. With little more than a month to go, all eyes will be fixed on Tallahassee.

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As Orlando car accident lawyers we have written on the impending demise of our Florida No-Fault law. On October 1, 2007, the law will expire unless the legislature renews it in its September Special Session. At present, that seems unlikely-especially in light of the controversy over extending the no-fault or Personal Injury Protection (PIP).

That controversy involves allegations by car insurance companies of rampant fraud. Recently, a number of arrests in Miami have highlighted the allegations that Florida's No-Fault law is too vulnerable to fraud and should not be renewed. Specifically, state regulators in Miami announced 11 insurance fraud arrests including a mother-son team that set up an auto-body shop to handle more than 70 fake accident claims in the past four years.

In detailing the arrests, Chief Financial Officer Alex Sink said that fraud related to the state's no-fault law has contributed to at least half of the workload in the Division of Insurance Fraud's Miami office. Among the arrests, two are accused of participating in a staged auto crash that resulted in more than $11,000 of fraudulent PIP claims through a Hialeah clinic, Havana Treatment Center. Also, the owner of Gables Medical Center in Miami, and a clinic therapist, were arrested on charges of billing more than $8,000 for treatments to two participants in a staged accident.

But CFO Sink acknowledged that auto accident-related insurance fraud won't disappear if PIP is eliminated. As with any system there will be some degree of fraud and misdealing However, the alternative to a No-Fault system will likely mean more citizens will be required to hire a lawyer to file legal claims on their behalf. For now, we will have to see if the legislature acts before October 1st.

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Proposed and approved settlements from the so-called "Colossus" class action could cost defendants more than $290 million. In the complaint on behalf of car accident victims with uninsured motorist claims, the plaintiffs alleged that a large number of insurance companies have used or currently use Computer Science's software program Colossus to engage in conspiracies to systematically undervalue bodily injury claim settlements.

Plaintiffs' attorneys describe the software as a cost containment tool used to enhance the insurance company profits at the expense of first party insured. The suit claims that the car insurance companies engaged in civil conspiracy, breach of contract, breach of the covenant of good faith and fair dealing, unjust enrichment, and fraud.

The infamous Colossus was used by the Government Insurance Office of Australia, and later licensed in the United States around 1990. The Colossus program is currently licensed to more than 20 insurers. Those that have used it have experienced a litany of claims of foul play and unfair claims evaluation. The class action original complaint was filed against Computer Sciences Corporation and has reached a point that some of the defendant insurers have decided to cut their costs by settling the claim.

While this litigation may have some benefit, it is likely that insurers will simply find another means of depriving car accident victims, like other injury victims, of fair compensation. It is unfortunate that hard-working people, who simply want to be treated fairly, may suffer low ball offers from their own insurance company. The insurance companies describe settlement as a means of avoiding rising litigation costs. The total of over $293 million proposed and approved settlements for only a small percentage of the insurance companies appear to justify their claim. Litigation can be a long and expensive process.

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Every injury lawyer should keep an eye on whether Governor Charlie Christ calls a special session this Fall or sooner to consider extending Florida's No-Fault Law. Personal Injury Protection is set to sunset on October 1, 2007.

For 36 years, Florida drivers have been legally required to carry at least $10,000 in insurance to cover their medical bills in the event of a crash, no matter who was to blame. While Big Insurance succeeded to kill attempts to continue the law in the regular session, Gov. Crist has made it clear he wants the PIP extended. Last week, Gov. Crist said he may call a special session no later than September.

What happens to no-fault will not only affect every driver in Florida and the price of insurance, but also hospitals, chiropractors, specialist medical clinics and lawyers who specialize in auto crash cases. Powerful economic interests on both sides of the issue have put tens of thousands of dollars into advertising campaigns to sway politicians and public opinion.

Arrayed against Crist, auto insurers say the demise of Florida's no fault law will reduce what they claim to be fraudulent claims that have lead to increased car insurance rates. State Farm, the state's largest insurer, already has filed for new rates that, on average, are 16 percent lower than under no fault.

Hospitals and trauma centers fear that switching from a no-fault system to what's known as a tort system, which happens if PIP goes away, will delay reimbursements for care provided to accident victims. To collect those costs, hospitals may have to sue, boosting their legal costs.

The Florida Hospital Association, which wants to preserve the no-fault system, predicts that eliminating PIP will cost the state's hospitals and trauma centers at least $350 million a year as they foot the bill for drivers who have no health insurance, according to Richard Rassmussen, a spokesman for the association. They say health insurers that provide group health insurance plans also will likely face higher costs that they would pass on to their customers.

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Florida car accident victims and those of us who represent them should be keeping an eye on what is happening in Tallahassee. While most injury lawyers see the benefit of extending PIP protection to assist car accident victims, a recent House bill puts the interest of the auto insurance industry ahead of consumers. The House's auto insurance bill, which came out of the Rules and Calendar Council, which usually doesn't take up substantive legislation, plans to do away with PIP.

The House version would require drivers to buy at least $15,000 of medical payments coverage to cover care in hospitals, trauma centers and emergency rooms shortly after an accident occurs. However, it eliminates coverage for other treatments such as rehabilitative services and chiropractic doctors. The bill also contains a fee schedule under the guise of controlling the cost of medical care.

Is it fair to deny accident victims coverage for choosing to be promptly treated elsewhere rather than having to wait hours to be seen at the emergency department? Is it fair to deny accident victims coverage for on-going medical care and rehabilitation related to the accident? After all, how many serious accident victims are completely well after their brief hospital visit?

In stark contrast to this stands the Senate bill approved by the General Government Appropriations committee, which extends the no-fault law for another four years and provides additional funding to deal with insurance fraud. That of course or something similar is what would benefit real consumers. As we have seen handling car accidents over the years, most people would have little or no coverage for medical expenses after an accident if it was not for PIP.

It is disappointing to see those misleading commercials put out by the auto insurance industry telling Floridians to call Tallahassee and demand a change to the present system. Unfortunately, the powerful insurance companies continue to increase their profits while providing fewer benefits for their policy holders. Soon we will learn whether the powerful insurance lobby wins another victory in Tallahassee.

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Joining Orlando injury lawyers and personal injury lawyers throughout Florida, the Florida Health Association has thrown its support behind efforts to extend the no-fault personal injury protection law, or PIP. This car insurance law is scheduled to die on Oct. 1, 2007 absent legislative action.

As reported by the Miami Herald the FHA, which represents hospitals and doctors, converged on Tallahassee to lobby for passage of Senate Bill 1450, which extends PIP through 2010. Allowing it to die would create a $350 million shortfall at a time when hospitals are too ill to handle it, the FHA said.

Created in 1971, PIP requires auto insurers to cover up to $10,000 of driver medical expenses without regard to who was at fault in an accident. But the auto insurance industry says PIP's loose guidelines have created too many opportunities for fraud. Car insurers seek to kill any effort to extend this important protection to those injured in Florida car accidents.

While no system is perfect, the FHA is correct that Florida hospitals are already stretched thin by federal cutbacks and spend significant amounts on uninsured patients. Allowing PIP to die now would only add to their problems.

As I discussed in an earlier post, this isn't the only PIP proposal floating around the Capitol. Sen. J.D. Alexander, a Republican from Lake Wales, is sponsoring a bill that would replace PIP with mandatory medical payments coverage. Senate Bill 2626 would require up to $25,000 per person or up to $50,000 per accident to cover injuries to drivers or accident victims.

With so many uninsured drivers in Orlando and state-wide, Florida needs mandatory car insurance to provide payment for auto accident related medical and hospital expenses. Otherwise, many blameless drivers and their passengers who can not afford and do not possess health insurance may suffer great financial hardship. The legislature should seek to avoid such an unjust result.

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As Orlando car accident lawyers most of our clients have never sued anyone. Before the car accident which brought them to our Orlando office, they were going about their own business, working hard and caring for their family. Suddenly, the car accident throws them into a situation that they didn’t create and they need help. Unfortunately, the other driver who caused this Orlando car accident may not have insurance.

It is difficult for many to imagine, but when you have a serious injury, you may be out of work, unable to pay your bills and your medical expenses may be piling up. All the while you have family that is depending on you. This heavy burden is what most of our Orlando car accident clients carry when they ask for our help. Of course, we must determine what avenues of recovery are available.

Sadly, our Orlando car accident investigations increasingly lead to the discovery that the careless driver or the drunk driver has little or no car insurance to cover our clients' serious injury or wrongful death . Car accidents are more punishing when caused by uninsured and underinsured drivers who recklessly travel our Central Florida roads and highways. Yet, Florida's insurance and traffic laws allow these very circumstances to occur.

In fact, these tragedies involving uninsured and underinsured drivers occur so frequently that our legislators are trying to do something about it. This year the Florida legislature is considering changing the law to require more adequate car insurance to protect innocent people who suffer injury or wrongful death in car accidents in Orlando and elsewhere in Florida. These proposals would require at $25,000 of automobile liability insurance to pay for another person’s medical bills and damages. While this would be a good start, it is still important for people to buy uninsured motorist insurance. This insurance will pay for your medical bills and damages if the other driver who caused the car accident does not have enough liability insurance to pay for all your damages in the accident.

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After two years of soaring property insurance rates, Floridians may get a break on their auto insurance. Some auto insurers say they will lower premiums for most drivers if the state's no-fault accident system expires as scheduled in October. The move could save Florida drivers hundreds of dollars a year in auto insurance premiums.

State Farm, Florida's largest auto insurer with 2.7 million policies, already has filed to reduce rates an average of 16 percent. The company estimates an annual savings of $360 for a typical two-car household, a statewide total of $435 million a year.

Florida's largest car insurers claim that No-fault has been plagued with legal loopholes and fraud and has become too expensive and gotten out of control. The no-fault system requires drivers to carry $10,000 in personal injury protection (PIP). It covers medical bills for drivers and their passengers' injuries regardless of who's at fault in an accident.

In 1972, Florida became the second state to adopt no-fault, which was designed to limit lawsuits by eliminating minor injuries from the tort system. In return for medical benefits, the No-fault law restricts people's right to sue if they are hit and injured in an accident. Today, only 12 states retain the no-fault medical provisions.

Some auto insurers want to retain the No-fault law. GEICO, Florida's third-largest auto insurer, supports improvements to the current no-fault system. Likewise, the Florida Justice Association and the Florida Chiropractic Association support re-enactment of PIP. In addition, the Florida Hospital Association says PIP should remain or be replaced with another mandatory medical coverage. Florida trial lawyers favor mandatory bodily injury coverage, now required in 47 states, to make at-fault drivers pay for injuries.

Florida drivers pay the sixth-highest auto insurance rates in the country, according to the Insurance Information Institute. New Jersey is No 1. The annual Florida premium averaged $1,062 compared with $838 nationwide in 2004, the most recent year measured.

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