No-Fault Reform Has Not Worked

Published: Jul 10, 2007

Gov. Charlie Crist is considering calling a special legislative session in September to extend the state's no-fault automobile insurance requirement, which is set to expire Oct. 1.

But lawmakers have spent much of the last decade trying to reform the law that has led to well-publicized fraud and abuse by unscrupulous doctors and chiropractors.

Legislators haven't been able to come up with a solution. The governor would be wise to let the law sunset and watch auto insurance rates come down.

Trouble is, the expiration of no-fault could directly affect the bottom lines of some powerful players in Tallahassee. Hospitals, clinics and health insurance companies insist if personal injury protection insurance is not required, many drivers will carry no health insurance at all. Hospitals, for example, worry they won't get paid in a timely manner, if at all, in the absence of PIP; some chiropractors worry their clinics will be forced to close.

But the demise of PIP should save drivers from 15 to 30 percent on their car insurance premiums, which is a major reason 38 states do not require no-fault insurance.

Moreover, the Legislature passed a law last year that directs payments to trauma centers from fines levied against drivers who run red lights. And established chiropractic clinics that are not facing start-up costs should survive.

The major risk of losing PIP is whether the savings promised consumers will be lost in any accompanying increase in health insurance premiums. It's a risk worth taking.