Home » No-fault repeal laws might considerably enhance auto insurance coverage prices for Florida drivers

No-fault repeal laws might considerably enhance auto insurance coverage prices for Florida drivers

Final 12 months, Gov. Ron DeSantis took motion to guard Florida drivers from substantial auto insurance coverage price will increase by vetoing laws that will have repealed Florida’s no-fault auto insurance coverage system with out implementing wanted authorized reforms. Floridians are grateful for the management he confirmed on this subject, his dedication to face up for the perfect pursuits of our state’s drivers, and his efforts to guard their hard-earned cash.

Nevertheless, this Session, considerably comparable laws is once more being thought of within the Florida Home and Senate. As soon as once more, these payments might lead to vital will increase in auto insurance coverage prices, particularly for individuals who can least afford it. An impartial evaluation carried out by Pinnacle Assets of Senate Invoice 150 and Home Invoice 1525 discovered that the proposals might trigger auto insurance coverage prices to skyrocket between 48 and 77% for drivers who buy minimal limits. In Florida, that’s roughly 40% of drivers.

Moreover, for Floridians presently carrying full-coverage auto insurance coverage, the laws into account this 12 months might enhance the price of the common auto insurance coverage coverage by as a lot as 13.3%.

Floridians already pay among the highest auto insurance coverage prices within the nation and are presently going through price will increase for a lot of items and companies as inflation continues to affect our nation’s financial system. If the price of auto insurance coverage is pushed even greater, particularly for individuals who are low earnings, protection might change into unaffordable. This might result in extra drivers going uninsured, making Florida’s roads much less secure for everybody. That is particularly regarding since Florida has one of many highest charges of uninsured motorists within the nation at roughly 20%.

Any reform of Florida’s auto insurance coverage system ought to prioritize lowering prices for customers by addressing rampant authorized abuse of Florida’s dangerous religion legal guidelines — a significant price driver that negatively impacts customers. Like final 12 months’s invoice, SB 150 doesn’t include any significant reforms to Florida’s dangerous religion legal guidelines. As a substitute, the laws would supply extra alternatives for lawsuit abuse by implementing many new ambiguous requirements, processes and definitions — all of which could possibly be exploited by plaintiffs’ attorneys. Repealing Florida’s no-fault auto insurance coverage system with out significant dangerous religion reforms might result in greater prices for customers and worsen our state’s authorized setting.

Gov. DeSantis additionally has proven exemplary management in enhancing Florida’s authorized setting together with his current picks to the Florida Supreme Court docket. We’re inspired by the affect it might have towards addressing long-standing considerations with dangerous religion, rampant lawsuit abuse, and fraud in Florida’s auto insurance coverage system, whereas making certain policyholders’ rights stay protected.

Any try and repeal or reform Florida’s auto insurance coverage system ought to concentrate on lowering client prices, stopping fraud and lawsuit abuse and making certain policyholder rights are protected. Sadly, SB 150 and HB 1525 don’t obtain these objectives. As a substitute, auto insurance coverage prices are prone to go up, particularly for individuals who can least afford it. With inflation already placing monetary pressure on people, households and companies, now isn’t the time to implement main coverage adjustments that might enhance prices even additional for hardworking Floridians.

We respectfully ask the Legislature to place the brakes on greater auto insurance coverage prices and vote no on SB 150 and HB 1525.

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Logan McFaddin is assistant vp of state authorities relations for the American Property Casualty Insurance coverage Affiliation.


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