No, Florida did not pass a law that car insurance was no longer needed.

What did occur is that the no-fault law sunset meaning that as of October 1, 2007 PIP (personal injury protection) was no longer required to be purchased as a part of Florida auto insurance policy. Property damage liability with limits of at least $10,000 is still required.

The end of PIP is short lived though. 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 again 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.

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 (PIP), 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.

If you are in an accident with someone in Florida and they cause damages to your vehicle their PDL should cover the repairs to your car. If there are bodily injuries sustained in the accident that is where it can become a bit complicated depending upon what insurance coverages each driver has.

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.