APCIA analysis shows SB 54 could increase
costs up to $876 for 40 percent of Florida drivers
The American Property Casualty Insurance Association (APCIA) today issued the following statement, attributed to its assistant vice president of state government relations Logan McFaddin, regarding the passage of Senate Bill 54 (Motor Vehicle Insurance) by the Florida Senate.
“The Florida Senate’s passage of Senate Bill 54 is bad news for Florida drivers, but especially those who live paycheck-to-paycheck and carry the minimum levels of auto insurance coverage. In Florida, approximately 40 percent of drivers carry minimum limits that are below what would be required under SB 54. Under the current proposal, these drivers could see their auto insurance costs rise by $165 to as much as $876 a year.
“The likely cost increases could make coverage unaffordable for low-income drivers and result in more uninsured drivers on Florida’s roads. This is especially concerning as Florida already has one of the highest rates of uninsured motorists in the nation at approximately 20 percent.
“Senate Bill 54 also lacks any meaningful legal reforms to Florida’s bad faith laws, which will only serve to fuel the current cycle of lawsuit abuse, worsen Florida’s legal environment, and could lead to even higher costs for consumers.
“Florida drivers already pay the highest premiums in the country for full auto insurance coverage. Amid the on-going pandemic with many still struggling financially, now is not the time to implement a major public policy change that could raise costs for Florida drivers.
“Any proposal to reform or eliminate Florida’s no-fault law should reduce consumer costs, but SB 54 is not the answer.”
The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions—protecting families, communities, and businesses in the U.S. and across the globe.