A bill that would end Florida’s no-fault auto insurance system and shift to a fault-based model advanced in the state House this week, drawing both support and criticism from stakeholders across the insurance, medical, and legal fields.
About the Bill
The proposed legislation, HB 1181, would eliminate the requirement for drivers to carry $10,000 in Personal Injury Protection (PIP) coverage. In its place, the bill raises the minimum required bodily injury liability coverage to $25,000 per person and $50,000 per incident. Advocates of the bill say it would create a more equitable system by allowing individuals injured in accidents caused by others to pursue compensation for noneconomic damages, such as pain and suffering—rights that are currently limited under the no-fault structure.
Rep. Daniel Alvarez, the bill’s sponsor, argued that the reform would improve fairness in the system. “You can’t ask me to forgo your growing pains to continue to allow Floridians to be subject to the pain,” he said, acknowledging the expected adjustment period for medical professionals and insurers.
Support and Opposition
While the bill passed overwhelmingly in the House committee, it has sparked concern among insurance companies and healthcare providers. Critics caution that removing the PIP requirement could raise insurance premiums for drivers who currently carry only the minimum coverage. There are also concerns that higher costs may lead some drivers to drop insurance altogether, increasing the number of uninsured motorists and placing more strain on emergency healthcare services.
Tampa Bay attorney Joshua Lipton highlighted the bill’s potential impact on motorcyclists, who cannot currently purchase PIP policies under Florida law. He noted that bikers often bear the burden of their own medical bills and wage losses in accidents involving insured drivers.
From the insurance industry perspective, some argue the system has already undergone recent reforms. State Farm lobbyist Mark Delegal pointed to 2022 legislative changes that streamlined litigation and removed one-way attorney fees, claiming these fixes have already started lowering rates. “State Farm has in the last six months lowered its automobile insurance rates by 8%. That’s a fact,” he said.
Uncertain Future in the Senate and Governor’s Office
The Senate companion bill, SB 1256, has been assigned to committees but has not yet been scheduled for a hearing. Meanwhile, the proposed repeal faces an uncertain fate with Governor Ron DeSantis. In 2021, he vetoed a similar repeal, citing potential unintended consequences and concerns over increased costs for consumers.
While the new bill does not include provisions like mandatory medical payments coverage (MedPay) that were part of the 2021 version, DeSantis recently signaled skepticism, suggesting the proposal is being driven by the legal industry. He stated that any reform must clearly demonstrate rate reductions to earn his support.
Sen. Erin Grall, who sponsored the Senate bill, remains optimistic. “A responsibility-based system to me is just consistent with many of the principles that [the governor] stands for,” she said, expressing hope for a productive dialogue during the legislative session.
Next Steps
HB 1181 is scheduled to move through the House Insurance and Banking Subcommittee and the House Judiciary Committee. Observers will be watching closely to see if the bill gathers momentum or faces another executive veto.
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