If Signed into Law, Senate Bill 54 Could Increase Auto Insurance
Costs by an Additional $860 Annually for Many Florida Drivers
The Florida Legislature today transmitted Senate Bill 54, which would repeal Florida’s existing personal injury protection “no-fault” auto insurance system without needed legal reforms, to Florida Governor Ron DeSantis for his consideration. SB 54 could cause auto insurance costs to skyrocket by as much as $860 annually for some drivers, lead to more uninsured drivers on Florida’s roads, and clog our court system with more litigation. To date, Floridians have sent nearly 37,000 letters to the governor urging him to veto this legislation.
“Floridians have been loud and clear in asking the governor to protect their wallet and their roads by vetoing this major policy change,” said Logan McFaddin, assistant vice president of state government relations for the American Property Casualty Insurance Association (APCIA). “Florida drivers are overwhelmingly concerned because they already pay the highest premiums in the country for full auto insurance coverage and this change could mean their costs may be driven up even higher, making coverage unaffordable for many.”
APCIA obtained actuarial assistance in assessing the impact of SB 54 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 – approximately 40 percent of Florida drivers – with those policyholders’ auto insurance costs increasing by as much as $860 a year.
The recent study commissioned by the Florida Office of Insurance Regulation is further evidence that Senate Bill 54 is likely to significantly increase costs for Florida drivers and have the most severe impact on drivers who purchase minimum limits.
“Consumers and businesses have already suffered significant financial hardship due to the unprecedented pandemic, and now is simply not the time to make drastic changes to Florida’s 50-year-old no-fault auto insurance system that are likely to increase costs for Florida drivers, especially those who can least afford it,” continued McFaddin. “APCIA, alongside the many Floridians who have written letters, is urging Governor DeSantis to take action to protect Florida drivers from higher auto insurance costs and from more uninsured drivers on Florida’s roads by vetoing SB 54.”
About APCIA
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.
