Push to repeal no-fault auto insurance in Florida could face resistance from Governor DeSantis

Could Florida repeal no-fault auto insurance?

Some state lawmakers want to get rid of no-fault auto insurance, arguing it would lower rates in the long run. Others, including Gov. Ron DeSantis, have shown resistance to such a move. FOX 13's Kellie Cowan reports.

TALLAHASSEE, Fla. - Florida ranks among the most expensive states in the country for auto insurance, and that has lawmakers revisiting a proposal that Gov. Ron DeSantis has previously vetoed: eliminating the no-fault clause.

Potential impact on car insurance

By the numbers:

House Bill 1181, filed by Republican State Reps. Danny Alvarez and Meg Weinberger, would repeal the personal injury protection coverage requirement while increasing minimum bodily injury liability coverage from $10,000 per person and $20,000 per incident to $25,000 per person and $50,000 per incident.

Dig deeper:

Supporters of an at-fault system – in which the driver who causes a crash must pay for it – believe it's much more fair than the current no-fault system. They also argue that no-fault insurance is more vulnerable to fraud.

Those in favor of keeping the no-fault system, however, say drivers would just end up having to buy more expensive liability coverage instead, adding there could be a spike in lawsuits which would bog down the courts.

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DeSantis is among the leaders who oppose changing the status quo. When state lawmakers passed a bill changing car insurance laws in 2021, the governor vetoed it.

Recent comments from DeSantis indicate another likely veto if it reaches his desk again.

"I think what you're when you're doing that, you're mandating the people to have additional coverage, which, you know, you could argue as a policy matter, but I don't see how you can say it's going to be cheaper to have more robust coverage mandated on people. And so that's the concern to me. I don't want to do things that are going to raise rates," DeSantis said.

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The Insurance Information Institute agrees with the governor, saying that repealing Florida’s no-fault system will lead to higher rates and more drivers will choose to go uninsured as a result.

According to a 2021 study by Florida's Office of Insurance Regulation, premiums would rise by an estimated 13% for all drivers if Florida repealed no-fault insurance.

What's next:

HB 1181 has yet to go to a committee vote in the Florida House. A companion bill, Senate Bill 1256, has also not reached a committee vote.

The Source: Information for this story was gathered by FOX 13's Kellie Cowan.

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