Hospitals and many doctors in South Florida and throughout the state wanted to keep the law because the medical benefits provided by PIP are the only form of health insurance many drivers have. Nearly 21 percent of Floridians lack health insurance.

Hospitals fear they could would be left with some $140 million a year in unpaid bills for care they would be required to provide to auto accident victims without health insurance coverage.

Yet many insurers say the PIP requirement, which many special interest groups wanted to preserve, is a major flaw in the no-fault law.

Major companies such as State Farm and Allstate have lobbied aggressively to convince lawmakers and consumers that they are better off without PIP. These insurers contend drivers will be able to save on insurance costs because the coverage won't be required.

''It is a sad, sad day when special interest groups win out over Florida consumers and the rampant fraud that everyone knows is out there is allowed to continue unchecked,'' said Charles Grimsley, general counsel for United Automobile Insurance Group.

Grimsley also heads the Florida Property and Casualty Association, a trade group of mostly Florida-based auto insurers that cater to drivers with blemished records or poor credit ratings. This group would prefer to see the no-fault law disappear because it sees the mandatory PIP requirement breeding fraud and excessive billing by healthcare providers.

Grimsley and others said having a fee schedule isn't sufficient to curb the medical costs.

''Doctors and chiropractors engaged in fraud will simply over-treat to make up for any lost revenue created by the fee schedule,'' he said.

Still, many consumers could be confused in the coming weeks and months about their auto insurance and what's required. Drivers with renewals coming up in early October have received policies without PIP -- and perhaps some savings -- because the law was expected to expire.

Miami Herald staff writers Gary Fineout and Marc Caputo contributed to this story from Tallahassee.