Health providers and auto insurers are headed for a head-on collision in Tallahassee over the scheduled “sunsetting” of a law that requires that every auto policy in the state include “PIP” – personal injury protection.
The PIP law is, in effect, a form of health mandate for auto insurance policies. It insures some level of coverage for medical treatment that results from an auto accident. The trade-off is that auto insurance is more expensive than it otherwise would be.
Although I’m not comfortable with mandated health coverage, I’m not opposed to mandatory PIP coverage. Here’s my reasoning:
- The added cost of PIP is nothing like the cost of health insurance. Most families can afford it (State farm says it adds $360 per year on average) – and it’s worth it if there’s an accident.
- Owning a car is a matter of choice. Owning a body is not. There’s not escaping mandated health coverage, but people can choose not to own a car if they don’t want to pay for auto insurance that includes PIP.
Hospitals and doctors oppose letting the PIP provision die. They would lose revenue, gain more collection problems, and struggle even more with uninsured medical treatment. Auto insurers want the sun to set on PIP, since that would make it easier to sell insurance while simplifying claims administration.
April 13, 2008 at 8:29 am
Interesting news: The Chubb Group of Insurance Companies has launched a new automobile insurance rating system, which will enable it to offer more competitive pricing. The rating system, as well as a multi-policy discount for customers who purchase both Chubb homeowners and automobile policies, has been launched in Illinois, Minnesota and Ohio as part of a nationwide implementation. nice site by the way.
April 22, 2008 at 1:26 pm
I really dislike insurance in all forms, health and auto insurance included. I do believe in personal responsibility and caring for the needy, but from where I sit, the only ones who REALLY benefit from insurance, mandated or otherwise, is the insurance company.
August 28, 2009 at 5:12 pm
Insurance companies certainly do benefit from insuring people. However, we shouldn’t ignore the fact that people’s lives are extended by care that, for most people, can only be paid for by an insurance policy.
People with young children sometimes die early, get disabled, or get very ill. Without insurance or a rich uncle, these families can be all but destroyed.
June 9, 2008 at 11:38 am
The American apple pie comment.
If have realy full of money then cannot
love the insurance.In another case, and
such is the majority, cannot allow to be usecured.
October 31, 2008 at 10:38 pm
This brings up some very good points. I’m assuming it just refers to medical coverage for the insured driver not medical liability insurance for anyone else that is harmed in an accident.
March 21, 2009 at 8:14 am
Interesting news: The Chubb Group of Insurance Companies has launched a new automobile insurance rating system, which will enable it to offer more competitive pricing.
September 19, 2009 at 12:46 pm
The economy sucks and i’ve been looking for cheap homeowners and auto insurance.Thanks
January 22, 2010 at 3:49 am
PIP coverage did go away for a few months, but it has been required again for about a year. One thing that people can do to reduce the cost of this coverage is to add a deductible. This is especially helpful for people that have low out-of-pocket costs on their health insurance.
March 9, 2010 at 4:02 am
Is PIP coverage available in all states on an auto insurance policy?