The American Property Casualty Insurance Association (APCIA) maintains a pair of Florida proposals eliminating the state’s existing no-fault auto insurance system could increase costs for some drivers.
The APCIA noted House Bill 719 and Senate Bill 54 would replace the no-fault auto insurance system with a mandatory bodily injury coverage system projected to have a financial impact on low-income drivers purchasing low coverage limits.
“Low-income drivers who purchase minimum limits in Florida are likely to be hit the hardest financially if Florida’s no-fault auto insurance system is eliminated and replaced with a mandatory bodily injury coverage system,” Logan McFaddin, assistant vice president of state government relations for the APCIA, said. “This could result in even more uninsured motorists on Florida’s roads, which is a serious concern as Florida has one of the highest rates of uninsured motorists in the nation at approximately 20 percent.”
According to APCIA data, approximately 40 percent of Florida drivers carry minimum limits below what would be required via the proposals. Drivers could see their auto insurance costs rise by $165 to as much as $876 annually.
“Florida drivers already pay the highest premiums in the country for full auto insurance coverage,” McFaddin said. “With the pandemic putting financial strains on consumers and businesses, now is not the time for lawmakers to implement major policy changes that will likely increase costs drastically for those who can least afford it.”
McFaddin said Florida’s court system is experiencing a backlog of more than one million cases in the wake of the COVID-19 pandemic and indicated it is not the time to send additional auto insurance claims to court by repealing the no-fault auto insurance system.