Auto insurance premiums will increase by an average of
The 40% of drivers who currently buy the cheapest coverage allowed by law will see the sharpest increases — as much as 77%, the analysis said. But those increases would be lower for
The analysis, commissioned by the
After taking no action on repeal proposals in previous years, the
Florida’s no-fault law requires drivers who want to legally register and tag their vehicles to purchase personal injury protection policies — or PIP — that provide up to
The bill would eliminate the PIP requirement and require drivers to buy coverage that would pay for medical care for occupants of the vehicles they hit — at least
The Pinnacle report found that effects of a no-fault repeal would be minimal for drivers with full coverage, particularly if they decide not to replace their
The report breaks the costs down like this:
In other states where it’s available, a majority of drivers choose personal medical coverage because it covers costs that normal health insurance with deductibles would not cover, the report said.
To maintain the
Opponents of the law have been urging DeSantis to veto the bill, but the Legislature has not yet sent the bill to his desk.
DeSantis’ press office did not respond to requests for comment about the issue.
Arguments on both sides
Supporters of the bill include the
Plaintiffs attorneys contend the repeal would reduce rampant PIP fraud, reduce auto insurance premiums, and create a more equitable system in which drivers that cause injuries will be held responsible to those they injure.
“The repeal of no-fault is past due,” said
Opponents include the
Carlson said the state’s already large percentage of uninsured motorists — estimated at about 20% — would increase if the repeal becomes law. Costs of uninsured motorist coverage would then swell, adding to costs for motorists who buy more coverage than what’s required, he said.
“We don’t want to raise rates unnecessarily and certainly not on those who can least afford it — the millions of ‘street legal’ drivers. We don’t think it’s fair to the working folks who cannot afford to pay more,” he said.
Medical providers oppose the change because the current PIP law guarantees them some payment for treating crash victims.
Supporters and opponents of the bill questioned the reliability of cost projections in the Pinnacle analysis.
Carlson said it fails to account for a last-minute change to the bill requiring motorists to buy the
Steinger said the analysis was based on 2014 data and underestimates increases in insurance costs and claims since then.
Pinnacle’s analysis found that, because of the amount of PIP losses that would be eligible for non-economic, or “pain and suffering,” claims under a so-called at-fault system, claims for bodily injury coverage would drive up costs by 45%.
While Florida’s law is called “no-fault,” the reality is that at-fault drivers are really only held blameless if the occupant they hurt suffers minor injuries that require minimal medical care.
If serious injuries occur, the injured driver can sue to recover medical costs that exceed the limited payout provided under PIP.
That’s why many
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