Residents Voice Concerns That Legislation Will Result
in Higher Insurance Costs & More Uninsured Drivers
Floridians from across the state have sent nearly 12,000 letters to Florida lawmakers this month urging them to oppose House Bill 719 and Senate Bill 54, which would repeal Florida’s existing personal injury protection “no-fault” auto insurance system without needed legal reforms.
“Florida drivers are taking action and writing to their elected officials to ask that they oppose HB 719 and SB 54 and to make it clear that now is not the time to raise auto insurance costs in our state,” said Logan McFaddin, assistant vice president of state government relations for the American Property Casualty Insurance Association (APCIA). “Floridians already pay the highest premiums in the country for full auto insurance coverage, so they are understandably concerned about any public policy changes that would push costs even higher.”
In the letters to lawmakers, Floridians have voiced their concerns that the legislation is projected to raise auto insurance costs, increase litigation, and potentially result in more uninsured drivers on Florida roads.
“Any reforms to Florida’s auto insurance system should be focused on reducing consumer costs and preventing fraud. Unfortunately, this legislation not only fails to do that, but it is also likely to ultimately lead to more uninsured motorists on our roads – when Florida already has one of the highest rates of uninsured motorists in the nation – and increase litigation,” added McFaddin.
APCIA obtained actuarial assistance in assessing the impact of the current bill language on Florida’s consumers and found it could increase the cost of the average auto insurance policy by as much as 23 percent or $344. When factoring in the legislation’s lack of meaningful bad faith reforms, a primary source of lawsuit abuse and key cost driver in the Florida auto insurance system, costs could increase an additional three to six percent, increasing the total impact on the average auto insurance policy to between $399 and $455. If passed, the legislation is likely to have an even greater impact on drivers who purchase minimum limits, with those policyholders’ auto insurance costs increasing by as much as $805 a year.
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.