The PIP insurance, FL no-fault, law did sunset in Florida as of October 1, 2007 thus the state no longer requires motorist to carry Personal Injury Protection as part of the state mandated auto insurance coverages, but only for a few months.

A bill to restore Personal Injury Protection, also referred to as no-fault or PIP passed the House, 105-4, early Friday (October 5, 2007) and later in the day was passed unanimously by the Senate. Governor Crist signed the bill into law October 11, 2007. The bill to reinstate PIP will take effect January 1, 2008.

Though PIP is not required from October 1 until the end of December, 2007 by FL law that does not however mean that automatically your financing company's insurance requirements will change.

PIP should never be required by a financing company. The only situation where PIP may need to be is with a lease agreement or a buy here-pay here, but that would not be for protection of the leasing company.

If your financing documents state that PIP is required then you would need to discuss this issue with your lien holder to see if they are going to amend their motor vehicle requirements for Florida as of October 1st if FL laws change. If they are not going to and your lease or loan papers require this coverage then it would appear you would need to continue to have it as part of your auto insurance coverage.

If instead your loan or lease documents only state that you must have Florida's minimum auto insurance or financial responsibility requirements plus physical coverages then you could take off the PIP requirement since it is no longer required by the state of FL. However before making any changes to your auto insurance policy it would be recommended that you first speak to the finance company.

Also keep in mind that PIP will again be required as of January 1, 2008 so taking it off for a short period of time will not likely lower your rates enough for the effort of taking PIP off and then placing it back on by the 1st of 2008.