Article at Insurance News Net about Florida’s expiring “no-fault” insurance law.   No-fault insurance is a system where the parties to an accident rely on their own insurance to cover their damages in an accident, rather than looking to the person who caused the accident to pay.  Tort-reformers who argued for enactment of no-fault insurance laws in Florida said the civil justice system added huge expenses to the process.  They argued that if the no-fault system was put in place, consumers would reap the benefits of lower premiums, etc. 

The article says Florida’s no-fault system, the one tort reformers lobbied for, is riddled with fraud and waste, so much so that it is beyond repair.  Florida consumers pay too much for auto insurance under the no fault system.  The article says Florida will reduce costs by returning to the mainstream, handling automobile wrecks through a tort based system.

This is another example of a tort reform myth being debunked.  Tort reformers claimed no-fault was a cure for everything.  That consumers would pay less for insurance, that economic growth would ensue, that Florida would be saved from out of control attorneys and judges. 

The system did not work.  Consumers paid more for insurance under the no fault system.  Florida is set to return to using the civil justice system to solve the problems our system of government delegated to the civil justice system many years ago.  Good to see.    

Advertisements