Bills seeking to repeal Florida’s no-fault automobile insurance system and its requirement that motorists carry $10,000 in personal-injury protection coverage have been filed again in the state legislature.
State Sen. Erin Grall and State Rep. Danny Alvarez have filed identical bills, S.B. 464 and H.B. 653. They would eliminate the no-fault system and PIP requirement, while requiring motorists to carry bodily injury coverage.
No-fault repeal has been a near-annual exercise for the legislature recently, and in 2021 a repeal measure got as far as Gov. Ron DeSantis’s desk, but he vetoed it out of fear of unintended consequences.
Supporters of no-fault repeal have said the current PIP levels, which start at $10,000, are insufficient. Providing bodily injury coverage also would put the onus on the party responsible for the injury, they said.
But opponents of no-fault repeal say getting rid of it would drive up costs on Florida motorists and could put more drivers on the road without coverage.
The American Property Casualty Insurance Association and other insurance trade groups applauded DeSantis when he vetoed the measure in 2021.
A study commissioned by the APCIA at the time said the repeal bill would increase rates, and force more drivers to go uninsured — in a state that already has a 20% rate of uninsured motorists.
Lawmakers should let the tort reforms they passed in 2022 and 2023 to take effect before moving on no-fault repeal, said Logan McFaddin, APCIA vice president, state government relations.
“APCIA encourages lawmakers to remain committed to the tort reforms and allow them time to work before making any significant changes like this to the market,” she said.
Florida’s 2024 regular legislative session begins Jan. 9.
The top five writers of all-private passenger automobile insurance in Florida in 2022, based on direct premiums written, were: Berkshire Hathaway Insurance Group, with a 23.98% market share; Progressive Insurance Group, 21.36%; State Farm Group, 14.83%; Allstate Insurance Group, 10.46%; and USAA Group, 6.54%, according to BestLink.