The American Property Casualty Insurance Association (APCIA) today highlighted an independent analysis conducted by Pinnacle Resources of this year’s proposals to repeal Florida’s no-fault auto insurance system (Senate Bill 150 and House Bill 1525) that could increase auto insurance costs between 48 and 77 percent for Florida drivers.
“Now is not the time for major policy changes that could increase insurance costs for hardworking Floridians,” said Logan McFaddin, assistant vice president of state government relations for APCIA. “Implementing a massive cost increase on drivers, especially those who can least afford it, could also negatively impact the safety of Florida’s roadways by increasing the number of uninsured motorists in our state. This is especially concerning since Florida already has one of the highest rates of uninsured motorists in the nation at approximately 20 percent.”
The Pinnacle analysis found that replacing current minimum coverage with mandatory bodily injury liability coverage of 25/50/10 with no medical payments would result in an estimated increase in overall rates of 48.3 percent. With $5,000 of medical payments coverage, the estimated increase in overall rates is 65.8 percent, and with $10,000 of medical payments, the estimated increase in overall rates is 77.2 percent. Additionally, for Floridians carrying full coverage, the cost of the average auto insurance policy could increase by as much as 13.3 percent.
Senate Bill 150 and House Bill 1525 are substantially similar to legislation to repeal Florida’s no-fault auto insurance system that was vetoed by Governor Ron DeSantis last year.
“We applaud Governor DeSantis for the decisive action he took to protect Florida drivers from increasing auto insurance costs by vetoing similar legislation last year,” added McFaddin. “We also recognize important changes he has made to improve Florida’s legal climate through his appointments to the Florida Supreme Court and are encouraged by the impact it may have toward addressing long-standing concerns with bad faith, rampant lawsuit abuse, and fraud in Florida’s auto insurance system, while ensuring policyholders’ rights remain protected.”
Senate Bill 150 is scheduled to be heard in the Senate Banking and Insurance Committee tomorrow, Wednesday, February 1. House Bill 1525 has not been scheduled to be heard yet.
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.