The Florida House Judiciary Committee passed a bill yesterday that causes more harm than good, according to the Personal Insurance Federation of Florida (PIFF).
House Bill 719, sponsored by the Civil Justice and Property Rights Subcommittee and Rep. Erin Grall, R-Vero Beach, now heads to the House for a floor vote.The bill repeals Florida’s Motor Vehicle No-Fault Law and its Personal Injury Protection (PIP) insurance requirement, replacing it with mandatory bodily injury coverage. PIFF says the solution in the fight against insurance fraud in Florida cannot be the creation of a new and bigger problem.
“On this course, rates will rise for Florida motorists, particularly those who buy the minimum required insurance and those who buy bodily injury coverage at amounts below what the proposed law requires,” said Michael Carlson, president and CEO of PIFF. “These drivers cannot afford an increase. As a result, Florida could see more uninsured motorists on the road, and in turn, uninsured motorist claims. Forcing Floridians to buy more insurance – and in the case of medical payments coverage, to buy insurance that they may not need – is the wrong thing to do.”
There is no data to support proponents’ arguments that the bill as proposed will reduce insurance rates. Data instead points to significant rate increases for millions of drivers who buy low limits: the Office of Insurance Regulation stated that rates will increase if Florida moves to the proposed mandatory bodily injury system.
The Personal Insurance Federation of Florida believes that any repeal of PIP must consider ways to alleviate potential rate increases.
“Meaningful reforms to Florida’s deeply unfair bad faith system should be included to help reduce lawsuits,” added Carlson. “While the Senate bill includes an attempt at bad faith reform, it has been weakened by the trial bar to the point that it may not help reduce lawsuits. Florida cannot afford the higher insurance rates generated by HB 719 and SB 54.”
PIFF is a member of the Consumer Protection Coalition, a group advocating for sound public policy that puts consumers first.
