Photo: Federal Government of the United States, Public domain, via Wikimedia Commons
Florida lawmakers are considering bills that would repeal the state’s no-fault automobile insurance laws and raise minimum liability coverage requirements, despite Gov. Ron DeSantis remaining stubborn in his opposition.
The proposed legislation would eliminate the requirement for personal injury protection (PIP) coverage and introduce new bodily injury and property damage liability minimums.
Florida's no-fault automobile insurance system, which mandates that drivers carry PIP coverage, has been a subject of legislative scrutiny for several years. Efforts to repeal this system and introduce mandatory bodily injury liability coverage have been recurrent.
In 2021, a similar measure passed but was vetoed by DeSantis. Lawmakers revisited the issue in 2022 and 2023, but repeal efforts did not advance.
Under Florida's no-fault system, drivers are required to carry $10,000 in PIP coverage to cover their own medical expenses regardless of fault in an accident. However, critics argue that the $10,000 limit, unchanged since 1979, is insufficient to cover modern medical costs.
In 2021, the Florida Legislature passed Senate Bill 54 (SB 54), aiming to repeal the no-fault system and require drivers to carry mandatory bodily injury (MBI) coverage of at least $25,000 per person and $50,000 per accident.
Despite legislative approval, DeSantis vetoed the bill, citing concerns that it could increase insurance costs and the number of uninsured drivers.
During his State of the State address, DeSantis expressed that he is still opposed to the proposed repeal.
Under the new proposed legislation, the no-fault law would be repealed effective July 1, 2026. At that point, drivers would be required to carry bodily injury and property damage liability coverage.
The bill sets a minimum of $25,000 for bodily injury or death of one person and $50,000 for incidents involving multiple people. Current limits include $10,000 for personal injury and property damage. The $10,000 property damage minimum would remain unchanged.
DeSantis has previously expressed concerns that repealing no-fault laws could lead to negative consequences for Florida drivers. The insurance industry has warned that eliminating PIP and increasing minimum coverage requirements could contribute to higher auto insurance rates.
Michael Carlson, president of the Personal Insurance Federation of Florida, said that increasing the bodily injury coverage requirement to $25,000 would likely lead to higher premiums. He noted that higher costs could lead to more drivers opting out of coverage, which could increase uninsured motorist claims and further impact rates.
Carlson also said that requiring bodily injury coverage could lead to more lawsuits, which could increase litigation expenses for insurers.
He pointed to HB 837, a law passed in 2023, as an example of reforms that are already contributing to lower auto insurance rates in the state. He said the industry should allow the 2023 reforms to take full effect before making further changes.
Industry groups have described HB 837 as one of the most significant reforms Florida has enacted in decades. Carlson said it is still too early to determine the full impact of the law’s provisions, including those related to medical damages.
He suggested that once more cases reach juries under the new law, claim severity may decrease, potentially leading to further rate reductions.
While some members of the Florida House support repealing no-fault laws, Carlson said there is uncertainty within the legislature regarding the issue. He does not expect the current repeal effort to move forward.
“The governor’s public position against repeal will have an impact on legislative activity on this issue,” Carlson said in a report from AM Best. “He has been clear that he does not want to see adverse unintended consequences, such as rate increases, caused by the change in law.”
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