Personal Insurance Federation of Florida Praises Veto of Rate Increase
Florida Governor Ron DeSantis Tuesday evening vetoed a bill that would have increased the cost of auto insurance for millions of Florida motorists. The Personal Insurance Federation of Florida (PIFF) thanked the Governor for using his veto pen to put a stop to Senate Bill 54.
The bill would have repealed Florida’s Motor Vehicle No-Fault Law and its Personal Injury Protection (PIP) insurance requirement, replacing it with mandatory bodily injury coverage, a mandatory death benefit, and an “opt-out” medical payments coverage modeled on PIP.
“We’re grateful Governor DeSantis put the brakes on PIP repeal,” said Michael Carlson, president and CEO of PIFF. “Forcing Floridians to buy more auto insurance would have been hardest on the drivers who can least afford it and would have increased the number of uninsured drivers on the road. We’re relieved the Governor agreed this was the wrong thing to do. To the lawmakers who spoke up this year to protect insurance consumers, particularly those who buy the minimum required insurance, thank you.”
A 2021 industry study estimates that over 20 percent of drivers in Florida, or one in five vehicles on the road, is currently uninsured. This is caused in-part by a lack of affordability; Florida has the fourth-highest average premium of any state due to well-known PIP fraud and litigation abuse.
The Office of Insurance Regulation stated that rates will increase if Florida moves to the mandatory bodily injury system proposed this year — data points to significant rate increases for millions of drivers who buy low limits. The Personal Insurance Federation of Florida believes that any repeal of PIP must consider ways to alleviate potential rate increases.
PIFF is a member of the Consumer Protection Coalition, a group advocating for sound public policy that puts consumers first.
The Personal Insurance Federation of Florida, Inc. (PIFF), is a leading voice for the personal lines property and casualty insurance industry in Florida. PIFF represents national insurance carriers and their subsidiaries, including many of the state’s top writers of private passenger auto and homeowners multiperil insurance. Together, PIFF members write more than $13 billion in premiums in the state. PIFF advocates for a healthy and competitive insurance marketplace for the benefit of Florida consumers. Visit PIFF.net to learn more.