Progressive was likely holding out on changing any policies regarding PIP until a "final ruling" as they stated came through since the state legislature was working on a reform or "fix" to the PIP situation that was set up with the no-fault law sunset on October 1st.

On Friday, October 5, 2007, the Florida Legislature did end up agreeing on a new version of no-fault auto insurance law. The new legislation is quite similar to the old law that expired Monday, October 1, 2007. The new law still requires motorists carry $10,000 of personal-injury protection coverage and takes effect Jan. 1, 2008.

Until New Year's Day 2008 the state of Florida will operate as if there is not a no-fault law on the books, since the one law has sunset and the new law is not yet in effect.

The Department of Financial Services (DFS), the insurance regulatory body for insurance in FL, has answered several questions regarding the situation Florida is in with regards to car insurance during the next 3 months, until the new law begins.

The representative for DFS stated that the new no-fault law will not change your existing coverage until your policy renews. Until that time your current coverage should say in effect. Companies like Progressive may be using this ruling.

The DFS does note however that different auto insurance companies will have different rules for renewing customers' policies before the new no-fault law take effect Jan. 1. Come January 1, all Florida motorists will once again have to carry the new no-fault coverage on their auto policies.

It may be that Progressive has taken the stance that they want their customers to continue with the PIP since for a motorist to drop it for 3 months and then have to re-start PIP would likely not save the person money but instead could cause the motorist issues if they are in an accident.

Many companies are using the following ruling:

• Even though PIP is not a mandatory coverage until January 1, 2008, companies will will offer a non-statutory version of PIP that customers will be required to purchase when renewing or buying a new policy between October 1, 2007 and December 31, 2007. This coverage will automatically convert to the legally required PIP on Jan. 1, 2008.
• Drivers who do not currently have PIP on their policies are not required to do anything. PIP will automatically be added to their policies on Jan. 1, 2008. Notification will be sent to those customers by 11/15/2007.

Keep in mind if you do not have bodily injury liability coverage you may want to speak to your agent about adding this for at least the next few months. Since the new no-fault law will not take effect for a few months, drivers involved in accidents could be sued to recover medical expenses.

There are exceptions, though. If the both drivers involved in an accident have no-fault coverage, then it will be handled as if the law never changed meaning that everyone still pays their own medical bills, regardless of who is at fault. However if you are in an accident before January 2008 and you have no-fault coverage but the other driver does not, you could be sued for any bodily injuries the other party sustained.

The DFS advises that customers with questions should call their agents or call the state's insurance consumer hotline at 1-800-342-2762 if you as a consumer have more questions regarding no-fault, PIP, laws. If you want to cancel PIP to only reinstate it in a few months then you may want to shop around for an insurance company that will fulfill your needs. Get your start here with a quote from an auto insurance specialist.