The system has been plaguing the state and is blamed for keeping rates among the highest in the US.
The Florida Senate recently introduced a new bill in an attempt once again to take down the no-fault auto insurance system in the state.
The required coverage means that drivers must use their own policy when accident claims are made.
In addition to the mandatory no-fault auto insurance coverage, drivers must also carry a minimum of $10,000 in personal injury protection coverage. Though the system was developed to help eliminate a range of different coverage issues, it is now blamed for causing premiums to skyrocket in the state, making the coverage some of the most expensive in the United States.
Among the biggest problems associated with the system, particularly the personal injury component, is that it is highly vulnerable to fraud. Therefore, fraud has become rampant. Lawsuits against insurers are commonplace and it is costing insurers a fortune, one $10,000 payout at a time.
One strategy suggested is to replace the no-fault auto insurance requirement with bodily injury coverage.
Instead of the personal injury protection system, which is highly abused by fraudsters, it has been suggested that the state implement a bodily injury coverage alternative. This is among the changes that are included in the bill currently being considered in Florida.
Many believe that if the bill successfully goes through, insurers will be able to reduce the rates they are charging drivers throughout the state. They believe that removing the expense of the personal injury protection requirement will cause the bodily injury coverage to not only balance each other out, but that they can reduce over time as they system will be decreasingly abused.
That said, this bill is far from guaranteed to pass. Similar attempts have been made several times in an effort to try to eliminate the no-fault auto insurance system in Florida. The issue with the coverage isn’t new and lawmakers have been struggling to get rid of it or replace it with something else. In 2021, a similar bill made it to Governor Ron DeSantis’ desk, where it was vetoed. If this particular bill manages to pass, it will go into effect in July 2024.