Personal Injury Protection insurance (PIP) has been getting a lot of attention recently due to rising costs of auto coverage and cries for reform. When PIP was initiated back in 1972 it was meant to help victims of auto accident get the medical treatment they needed without legal delays no matter who was at fault for the accident. PIP is sometimes referred to as “no fault insurance” for that reason.
While PIP really does benefit those who have been injured in an accident, abuse of this system has led to the demand for an overhaul of the system. Fraudulent or staged car accidents have become an all-too-common occurrence in some areas of the country which is leading to higher PIP costs and in turn increased car insurance premiums.
Florida, who boasts the highest amount of fraudulent reports in the country, has a bill working its way through the legislature that they hope will curb this issue. However, while this law would help decrease fraud it would make it more difficult for those who legitimately need it to get the help they need. Part of the bill proposes a 72 hour limit on when someone needs to seek medical treatment in order to collect their PIP. This sounds fair enough, after all who would wait longer than 72 hours if they are injured, but the truth of the matter is that many car accident injuries will not present that early.
Common accident injuries such as soft tissue damage (herniated discs, etc.) can take days or even weeks to present. If this 72 hour limitation is implemented people who sustain this type of injury would not get the benefit of PIP to help with their medical treatment or lost wages. In the long run it seems that this bill will discriminatorily effect those who need it as far as costs.
CBS reported that Florida PIP fraud costs are nearly $1,000,000,000. They went on to tell the story of Christine Donovan, a car accident victim who sustained soft tissue damage. Her insurance company investigated her for insurance fraud when she tried to collect her PIP for her injury. Since the injury was not something affecting her immediately following the accident the company thought it was suspicious when she later sought treatment. This is how it is without the 72 hour limit, imagine how much harder it will be for those who need it most to get treated after an accident.
New Jersey drivers can relate with the frustrations of PIP as it is the third most expensive state to insure a vehicle in according to National Association of Insurance Commissioners (NAIC). It was reported by the NAIC that PIP counts for 50 percent of the recent rises in car insurance premium, which is enough to frustrate anyone. The problem is that since people are getting so frustrated about their bills they are not seeing the bigger impact new legislation would have. Only when someone really needs to utilize their PIP will they realize how much these regulations would adversely affect them.
PIP coverage can be confusing and frustrating, even more so when you have to utilize it. If you’ve been injured in a crash speak with a New Jersey car accident attorney. The lawyers at Console & Hollawell will guide you through the process and make sure you get the help you need.
Photo credit: FL Chamber.
