Three months ago, after thirty-six years of no-fault car insurance, the state legislature of Florida let the requirement that drivers carry PIP, or personal injury protection, lapse. While drivers liked this, however, several public interest groups did not, which is why there was a week of intense negotiation, with the end result being that the mandatory PIP law was re-established. Effective on January 1, 2008, Florida drivers must carry PIP once again.

PIP is insurance commonly required in "no fault" states. In Florida, the $10,000 minimum coverage pays for injuries and lost wages regardless of who caused an auto accident. Among the proponents of reinstating the requirement were many members of the medical profession, especially hospital administrators, who argued that they would have to cover the cost of unpaid emergency room visits.

Insurance companies, on the other hand, argued that the PIP system is abused, and that most people have private health insurance, Medicare, or Medicaid to cover their medical bills.

After all the arguments were heard, the coverage minimum was reinstated, Florida motorists were given until January 1st - yesterday - to reinstate their PIP coverage, or risk having their drivers' licenses and registrations suspended until they are in compliance with state law.

As well as a $10,000 minimum coverage requirement, the new version of PIP in Florida includes limits on the prices that medical facilities may charge the insurance company for non-emergent care, and requires that licensed doctors oversee PIP clinics. As well, the state added $2 million to their budget, to pay for more anti-fraud attorneys.

The Florida Insurance Council believes that only a few hundred thousand of Florida's nearly 18 million drivers actually dropped their PIP insurance three months ago, and also believes that the new version of PIP is a stronger system, with better anti-fraud measures to protect drivers and insurers alike.