FPCA Automobile Division: Senator Rene Garcia in the Sun Sentinel — ‘Don’t Change or Eliminate PIP’
Feb 28, 2011
FPCA Automobile Division Members:
The following opinion article by Senator Rene Garcia was published in the Sun Sentinel today, February 28, 2011. The article is reprinted below and can also be accessed by clicking here.
Should you have any questions or comments, please contact Katie Webb (kwebb@cftlaw.com) at Colodny Fass.
Don’t change or eliminate PIP
By Rene Garcia
As my fellow elected officials and I gear up for the legislative session, one issue that deserves some clarification is no-fault auto insurance coverage, also known as personal injury protection or PIP.
We have 15 million-plus licensed drivers in Florida and almost as many registered motor vehicles. Each of those vehicles is required to have PIP coverage. According to the Florida Department of Highway Safety and Motor Vehicles, there were more than 235,000 traffic crashes in 2009. It’s the big picture and certainly does not account for the percentage of these accidents that involve a PIP claim, nor does it account for claims that may have been made without law enforcement’s involvement.
That’s the problem here – we really don’t have much data on PIP claims because insurance companies carefully guard this information. Florida-specific data on the total number of PIP claims made each year and the percentage of those claims insurance companies determine are fraud is not readily available. To better understand the issue, this is information the insurance industry needs to provide to the Legislature. We can’t set informed public policy without the complete picture.
Proclaiming rampant abuse and fraud in the system without providing perspective or solid supporting data is troublesome to me. Absolutely, fraud does occur. Data in the Florida Division of Insurance Fraud 2009-10 Annual Report show that 8 percent of the PIP fraud claims referred to them are presented for prosecution and, ultimately, 4 percent of those cases result in a conviction.
There will always be those few unscrupulous individuals willing to stage accidents or file false claims. As citizens and taxpayers, we should be outraged by these egregious acts. However, we shouldn’t let these instances color our perception of the whole system.
Established by the Legislature nearly 40 years ago, the purpose of PIP is to pay bills (and wage loss) for medically necessary services for injuries sustained in a car accident, regardless of which driver is at fault. Consumers take this responsibility into their own hands by paying for PIP benefits as part of their auto policies. Just like any form of insurance, it is supposed to be there if you need it.Because many Floridians do not have health insurance, PIP benefits help to ease the burden on all consumers and the entire health care system by ensuring an opportunity to obtain appropriate medical treatment without passing the responsibility of payment onto the health care provider. Changing (or eliminating) PIP will create confusion, uncertainty and additional financial hardship in a system that currently is intended to help consumers cover their own costs for necessary medical care after an auto accident.
I appreciate the need to address insurance fraud. But, let’s approach this in a way that protects against these instances without losing all the important benefits PIP affords the people of Florida.
Rene Garcia, R-Miami-Dade, is a Florida state senator.
