Gov. Ron DeSantis opposes efforts to repeal Florida’s no-fault automobile insurance laws, citing concerns about higher auto insurance rates and the legal industry’s influence.
DeSantis previously vetoed a bill that would have replaced the no-fault system with a fault-based model. After his State of the State speech, he reaffirmed his position.
If they have a reform that lowers rates, fine. But let’s be clear—this is something the legal and trial bar wants. Why? Because they see opportunities to make money,” DeSantis told reporters. “I don’t want to do anything that raises rates.
Gov. Ron DeSantis
Republican Sen. Erin Grall and Rep. Danny Alvarez introduced bills (SB 1256 and HB 1181) to eliminate the requirement for personal injury protection (PIP) and mandate $25,000 in bodily injury coverage for one person, $50,000 for two or more people per incident, and $10,000 in property liability coverage.
Alvarez’s bill is under review by the Civil Justice & Claims Subcommittee, Insurance & Banking Subcommittee, and Judiciary Committee. Grall’s bill faces hearings in the Banking and Insurance Committee, Appropriations Committee on Agriculture, Environment, and General Government, and Rules Committee.
PIP covers medical expenses, lost wages, and other costs for drivers and passengers injured in crashes, regardless of fault. Florida law mandates $10,000 in PIP coverage and $10,000 in property damage liability coverage. Drivers can purchase additional coverage.
As of February, nearly 6% of Florida drivers were uninsured, according to the Department of Highway Safety and Motor Vehicles.
Florida’s no-fault laws limit lawsuits for noneconomic damages, such as pain and suffering, unless the injury results in permanent impairment, disfigurement, or death.
The Florida Justice Association, representing trial lawyers, supports repealing PIP. A Forbes analysis ranks Florida as the most expensive state for auto insurance, with an average annual premium of $1,529.
Insurance lobbyists and Florida Justice Reform Institute President William Large oppose repeal, arguing that lawmakers should wait at least three years to assess the impact of eliminating one-way attorney fees.
Since 1893, state law required insurers to cover policyholders’ attorney fees if they sued to enforce claims. In 2023, lawmakers changed the rule, requiring both parties to pay their own legal fees.
In 2021, the Legislature passed a bill (SB 54) to repeal the no-fault system, but DeSantis vetoed it. He acknowledged flaws in PIP but warned that repeal could have unintended consequences for the market and consumers.
House Speaker-designate Daniel Perez, who was vice chair of the House Judiciary Committee in 2021, voted in favor of repeal.
