Bill to end no-fault auto insurance passes panel

Bill sponsor said that the move to change the system was a response to a “public outcry”

Bill to end no-fault auto insurance passes panel

Insurance News

By Allie Sanchez

Florida motorists will soon have a five decades long burden off their back as state Congress passed a measure to end no-fault insurance, which is said to be vulnerable to fraud and expensive for policyholders.

The change will be effective on January 1, 2018.

Local publication PalmBeachPost.com said in a report that Florida drivers pay one of the country’s five highest car insurance premiums, but receive some of the lowest required coverage amounts.

Find out why is car insurance in Florida so expensive in this article.


Furthermore, the report said that motorists in the state pay upwards of 25% of $10,000 personal injury protection.

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The no-fault insurance system indemnifies the policyholder without the need to prove whose fault an accident is.

“I think it’s time and there is public outcry,” state Rep. Erin Grall, was quoted as saying in the report.

Grall sponsored HB 1063, which puts an end to the no-fault insurance system in Florida, and passed the subcommittee level 12-2.

Meanwhile, representatives of insurance companies, including State Farm and Nationwide, were supportive of the measure, but also said there is a need for legislative reforms on “bad faith” provisions in the insurance system, which are expected to cut legal costs associated with claims that pass through the courts. 


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