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QuestionInsurance Question  Will you have to pay a reinstatement fee in Florida for insurance even after October 1, 2007 if incident happened before new law on PIP coverage?

AnswerAuto Insurance Answer

It will depend upon the type of reinstatement fee you are referring to whether it will be due if the no-fault, PIP auto insurance laws in Florida sunset as of October 1, 2007.

If the Florida Department of Highway Safety and Motor Vehicles (HSMV) is requiring you to pay a reinstatement fee to restore your driving privileges after a suspension or revocation of your driver's license then yes, this fee will be due if the incident happened prior to October 1, 2007 or after January 1, 2008.

The Florida Department of Highway Safety and Motor Vehicles sent out notices to all driver’s license offices tell them how to deal with insurance verification starting October 1, 2007. The document states that four types of PIP cases would be “pro-grammatically closed,” without any proof of insurance or reinstatement fee. However, existing laws requiring property damage liability coverage will still be enforced and license applicants will have to produce proof of auto insurance coverage.

Between October 1, 2007 and January 1, 2008 any driving sanctions that the HSMV was able to place on drivers in the past will no longer be placed on drivers for noncompliance.

If you are referring to a reinstatement fee by insurance due to a lapse then you would need to check with the insurance regulator of Florida, FL Department of Financial Services, and your insurance agent to see if these fees would apply. Most likely the would apply. Property Damage Liability coverage will still be required by the state of Florida even if PIP is no longer required after October 1st.

For the latest news headlines on Florida PIP laws and other auto insurance news click here.

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