Florida is one of 12 states that have no-fault insurance laws. Multiple efforts to repeal the regulation have fallen short. Current law mandates that drivers carry personal injury protection coverage of $10,000.
Change may be in the making after legislation passed by the Florida Senate that would end the 50-year regulation and raise bodily injury liability coverage to a minimum of $25,000. A similar companion bill also received approval from the state’s House Judiciary Committee.
Both pieces of legislation would significantly change how claims are processed and third-party bad faith failure to resolve claims against insurers. Specifics of the bills include:
- $25,000 in bodily injury or death of one person in one crash and $50,000 if two people are injured or killed.
- Removing limits on pain recovery and damages from PIP insurers.
- Retaining the existing $10,000 financial responsibility requirement for property damage.
- Limiting payment coverage to $10,000, covering medical costs of the insured with no deductible.
Opponents of the change claim that premium payments for policyholders would increase and do little to reduce or eliminate fraud. In addition, they claim that the “bad faith reforms” will do little to reduce personal injury lawsuits. Some see it as an incentive for more abuse of the legal process.
Those against the legislation claim uninsured motorist insurance would also increase, a popular option for many low-income and underinsured drivers who would no longer be able to afford their premium payments.
Should the legislation pass, Floridians will see the new system launch on the first day of the new year.