With the Florida no-fault system of auto insurance ending as of October 1, 2007 there has been confusion not only among drivers and consumers but also within the state. State legislatures as well as the FL Department of Highway Safety and Motor Vehicles (HSMV) have been trying to read into the Florida statutes to determine if any insurance coverage will be required if no fault ends.

The 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.

The HSMV had stated earlier this year that with the sunset of no-fault that there would not be any requirements concerning auto insurance. They are now admitting that they were incorrect in their interpretation of Florida state law.

Before October 1, 2007 and after January 1, 2008 all Florida motor vehicle owners and operators were required to purchase Personal Injury Protection (PIP) in the amount of $10,000 for losses sustained by the insured or covered person as a result of bodily injury, sickness, disease, or death arising out of the ownership, maintenance, or use of a motor vehicle.

Motorists are also required to carry $10,000 worth of property damage insurance to cover the vehicles or property of others that one may harm when operating their vehicle.

When Florida's no-fault law expired Oct. 1, 2007, drivers are no longer need to buy $10,000 in personal injury protection (PIP). Until recently HSMV officials were also saying most Florida motorists would no longer have to carry property damage coverage as well. Apparently after the lawyers looked again at the state statutes they have now changed their mind and state that the minimum amount of $10,000 of property damage coverage is still required.

A representative from the HSMV noted that their legal staff is still reviewing FL laws to determine if and how motorist will be required to prove they have auto insurance after October 1, 2007 when the no fault laws sunset.

One thing the state says will not change is the penalty for being found uninsured. If you are a Florida driver who gets into an accident and are unable to show proof that you have property damage insurance, you could be found guilty of a second-degree misdemeanor. A 2nd degree misdemeanor can come with penalties of a $500 fine and up to 60 days in jail.

It is important to note that all damages from accidents on or after October 1 will be the responsibility of the at-fault driver. If your insurer initially pays your damages and you are not at fault, you may be expected to recover these damages from the at-fault driver (subrogate).

House and Senate leaders in FL have discussed the no fault sunset issue but it was not until after the law sunset on October 1 that legislators finally reached a decision on what to do about no-fault.

CarInsurance.com is glad that a consensus has finally been reached. We were prepared to handle auto policies for our customers either way, but a good transition plan and state leadership would have helped accomplish a consensus across all insurance carriers.

You can read news updates on our headlines page, such as this one that discusses what will happen after the no-fault law expires.