FLORIDA
Florida Lawmakers Taking Another Run at Repealing No-Fault Auto Laws
TALLAHASSEE, Fla. //BestWire// - Bills are circulating in both Florida legislative chambers that would strike down the state’s no-fault automobile insurance laws and increase minimum liability coverage requirements.
This is not the first time the legislature has attempted to appeal these auto regulations as lawmakers passed repeal legislation in 2021 that was ultimately vetoed by Gov. Ron DeSantis (BestWire, June 30, 2021). Lawmakers took up similar legislation in 2022 and 2023, as well (BestWire, Dec. 22, 2023).
The newest legislation would repeal the no-fault law on July 1, 2026, after which personal injury protection coverage would no longer be required or available in the state, according to the bill’s text. Once instituted, drivers would be required to show proof of bodily injury and property damage liability coverages.
The bill also sets $25,000 for bodily injury or death of one person and $50,000 for instances involving more than one person. Current limits are $10,000 for personal injury and property damage. The legislation maintains the $10,000 minimum for property damage.
DeSantis opposed past repeal efforts on the grounds that they didn’t address the issues facing Florida drivers and could have unintended negative consequences. The insurance industry has long cited higher rates as an unintended consequence of no-fault law repeals, as well as the proposed higher minimum requirements.
“A move to $25,000 bodily injury coverage, which is what has been proposed, will likely result in a rate increase for these drivers,” Michael Carlson, president of the Personal Insurance Federation of Florida, said in an emailed statement.
The fallout, he said, could be more drivers forgoing coverage, in turn potentially increasing uninsured motorist claims and further pressuring premiums. Additionally, the new mandatory bodily injury coverage would result in more lawsuits, which could drive up carrier litigation costs and pressuring rates even more.
“Florida has fixed PIP with the passage of HB 837 in 2023, and as a result, auto rates are falling,” Carlson said. “We believe that HB 837 reforms should be allowed to be fully implement and that as they do, we will see further improvements in the market.”
HB 837 was touted as some of the most significant reforms Florida enacted in decades, industry trade groups said (BestWire, March 24, 2023).
For example, Carlson said it is too early to tell if the bill’s “truth in medical damages” provision is having a significant impact as there aren’t enough cases reaching juries under the new laws.
“Once they do, we hope to see a reduction in BI claims severity, and if the market continues to be healthy, we should anticipate further auto rate decreases,” he said.
Although some members of the Florida House strongly support eliminating no-fault laws, Carlson said the state’s legislature is ultimately ambivalent about repeal efforts. He doesn’t see this legislation making it across the finish line.
“The governor’s public position against repeal will have an impact on legislative activity on this issue,” Carlson said. “He has been clear that he does not want to see adverse unintended consequences, such as rate increases, caused by the change in law.”
Attempts to gain comment from the lawmakers sponsoring the legislation and DeSantis were unsuccessful.
The five largest writers of private passenger auto insurance in Florida during 2024, based on direct premiums written, were: Progressive Insurance Group, 22.85%; Berkshire Hathaway Insurance Group, 22.12%; State Farm Group, 16.51%, Allstate Insurance Group, 10.28%; and USAA Group, 6.95%, according to BestLink.
(By Steve Hallo, senior associate editor, BestWire: Steve.Hallo@ambest.com)