Florida House bill to repeal non-fault auto insurance system clears subcommittee

By Michael Loney

April 4 - (The Insurer) - A bill that would repeal Florida’s no-fault auto insurance system has been passed by the Florida House Insurance & Banking Subcommittee.

HB 1181 was passed in the Florida House Insurance & Banking Subcommittee on Thursday and is now before the judiciary committee. A companion bill, SB 1256, was also introduced in the Florida Senate in early March.

The American Property Casualty Insurance Association warned that efforts to repeal Florida’s no-fault auto insurance system could result in higher auto insurance costs and increased litigation at a time when the state’s insurance market is in recovery.

“HB 1181 would increase the minimum amount of auto insurance coverage that Floridians must purchase,” said Adam Shores, senior vice president of state government relations at APCIA.

“Low-income drivers who purchase minimum limits in Florida are likely to be hit the hardest financially by this change as they would be required to purchase more insurance coverage. If coverage becomes unaffordable, drivers may opt to go without coverage which would result in more uninsured drivers on Florida’s roads.”

APCIA said that several major auto insurers have filed for rate reductions recently ranging from 6.0% to 10.5%.

“These positive trends could be reversed if Florida’s no-fault auto insurance system is repealed,” Shores said.

He added that the 2022 and 2023 legal system abuse reforms have made progress in stabilising Florida’s insurance market, curbing unnecessary litigation and reducing insurance costs.

“Repealing Florida’s no-fault auto insurance system now would undermine these gains and impose new burdens on Florida consumers. We urge the Florida legislature to hold the line and vote no on HB 1181,” he said.