Proposed repeal faces opposition from Governor DeSantis
Efforts to dismantle Florida's no-fault automobile insurance system may hit a roadblock as Governor Ron DeSantis remains opposed to the proposed repeal. The governor, who previously vetoed a bill aimed at transitioning the state to a fault-based insurance system, recently reaffirmed his stance.
Speaking after his State of the State address last Tuesday, DeSantis remarked, “If they have a reform where we can show that it’s going to lower rates, it’s fine. But let’s just be clear. I mean, you know, we know that’s something that people from the legal and the trial bar have wanted to do. And so why would they want to do that? Obviously, they see that there’s opportunities for them to make money off of it. I don’t want to do anything that’s going to raise the rates.”
Understanding Florida's No-Fault insurance system
Florida's no-fault insurance law requires drivers to carry a minimum of $10,000 in Personal Injury Protection (PIP) and an additional $10,000 in property damage liability coverage. PIP covers medical costs, lost wages, and related expenses for those injured in a car accident, regardless of fault. The system limits lawsuits against at-fault drivers, preventing claims for non-economic damages unless the injured party suffers a permanent injury, disfigurement, or death.
A proposed repeal bill, introduced by Sen. Erin Grall (R-Vero Beach) and Rep. Alex Andrade (R-Escambia County), aims to eliminate the PIP requirement and mandate bodily injury liability coverage of $25,000 per individual, $50,000 per incident, and $10,000 in property damage liability. While supporters argue that this shift would reduce insurance costs, DeSantis and other critics believe it may ultimately drive rates higher.
Ongoing debate and future outlook
The repeal bill has been assigned to multiple committees for review in both the Florida House and Senate. Proponents believe that eliminating PIP would streamline the claims process and reduce fraudulent claims, which have historically inflated insurance premiums in Florida. However, opponents caution that without proper safeguards, the new system could disproportionately affect low-income drivers and increase litigation costs.
Governor DeSantis' veto of a similar bill in 2021 cited concerns about unintended consequences for both consumers and the insurance market. His continued opposition suggests that Florida's no-fault system is likely to remain in place for the foreseeable future.
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