Florida governor makes decision on no-fault auto insurance repeal bill

Florida governor makes decision on no-fault auto insurance repeal bill | Insurance Business America

Florida governor makes decision on no-fault auto insurance repeal bill

Florida Governor Ron DeSantis has vetoed a bill that would have repealed the state’s no-fault auto insurance system.

Senate Bill 54 would have rewritten state laws, replacing personal injury protection coverage (the so-called “no-fault” system) with mandatory bodily injury coverage limits. It would also require insurers to offer medical payments coverage.

In a letter addressed to Secretary of State Laurel Lee, DeSantis explained that the bill “does not adequately address the current issues facing Florida drivers and may have unintended consequences that would negatively impact both the market and consumers.”

Legislators claimed that the bill would have helped lower premiums in Florida. Rates were anticipated to decrease for insured drivers that already carry at least $25,000 in bodily injury coverage, had the bill passed.

Read more: Florida mulls decision to discontinue no-fault insurance

However, insurers warned the governor that the bill could instead lead to higher premiums for most drivers, particularly during the governor’s reelection campaign.

A report by independent actuarial and management consulting firm Pinnacle Actuarial Resources for the Florida Office of Insurance Regulation noted that repealing the state’s no-fault insurance system would result in an overall increase in premiums of 13.3% for all coverages combined.

Read more: New Florida bill could lead to 50% auto insurance rate increases

Tampa Bay Times reported that the American Property Casualty Insurance Association (APCIA) praised DeSantis’ decision to veto the bill.

“We applaud his leadership, his commitment to stand up for the best interests of Floridians, and his actions to protect their pocketbooks,” said APCIA assistant vice president of state government relations Logan McFaddin in a statement.