(The Heart Sq.) – For many years, Florida lawmakers have contemplated payments searching for to repeal the state’s half-century-old no-fault auto insurance coverage system.
They’ve perennially failed as a result of there’s no certainty a repeal would decrease Florida auto insurance coverage charges.
There nonetheless isn’t, not less than in keeping with the insurance coverage business, however however, Florida’s 16 million drivers, who already pay the nation’s highest auto insurance coverage premiums, could be taught the reply to that long-debated query subsequent 12 months.
After a 39-minute dialogue, the Florida Senate adopted Senate Invoice 54 in a near-unanimous vote Wednesday, sending the repeal to the Home, the place an identical proposal – Home Invoice 719 – is one listening to away from the chamber flooring.
SB 54, filed by Sen. Danny Burgess, R-Zephyrhills, and HB 719, sponsored by Rep. Erin Grall, R-Vero Seashore, would repeal the state’s no-fault regulation and exchange its private harm safety (PIP) system with a Necessary Bodily Damage (MBI) system.
Florida’s 1970 Motor Car No-Fault Regulation requires house owners to take care of PIP protection of $10,000 in medical, incapacity and funeral bills, with out regard to fault, and topic to a $2,500 restrict for non-emergency medical care. In trade for PIP protection, automobile house owners are immune from tort claims.
SB 54 would require drivers by Jan. 1, 2022, to safe MBI protection of not less than $25,000 for demise or harm of 1 particular person, $50,000 for harm or demise of two or extra individuals and $10,000 for property injury.
Florida is amongst states which have no-fault insurance coverage however in contrast to all others, it doesn’t require motorists to hold MBI. Plus, critics contend, the minimal $10,000 PIP protection has not elevated since 1970.
Proponents say growing the quantity of insurance coverage protection on Florida roads will decrease general auto insurance coverage charges and say auto insurance coverage charges declined in Colorado after it repealed its Florida-like no-fault PIP system in 2003.
Opponents counter the one state the place auto insurance coverage charges have elevated sooner than these in Florida since 2013 is Colorado … as a result of it repealed its no-fault PIP system in 2003.
In accordance with the American Property Casualty Insurance coverage Affiliation (APCIA), about 40 %, or greater than 6 million, Florida drivers now carry insurance coverage under what can be required below SB 54/HB 719.
The APCIA initiatives these drivers may see insurance coverage prices enhance by $165 to $876 a 12 months if repeal is adopted.
Florida Insurance coverage Commissioner David Altmaier has not endorsed repeal and needs extra research. Florida Chief Monetary Officer (CFO) Jimmy Patronis has expressed fears charges will rise for “these that may least afford it.”
Sen. Jeff Brandes, R-St. Petersburg, the dissenter within the 39-1 vote, stated supporters can not declare repeal will decrease insurance coverage charges “and that isn’t proper.”
“You may’t go house, look your constituents within the eye and say, ‘That is going to decrease your charges,’” he stated. “To your poorest constituents, it could increase their charges 15, 20, 70 %. We don’t know.”
Supporters hinted no-fault repeal will probably be signed by Gov. Ron DeSantis and Senate President Wilton Simpson, R-Trilby, gave it his blessing.
“PIP protection ranges are clearly inadequate,” Simpson stated. “It’s the proper time for Florida to maneuver to necessary protection for bodily harm legal responsibility.”
Proponents say research present charges will go down for almost all of Floridians who already carry MBI protection.
“The important thing query earlier than us is are the present coverages ample, and I believe we are able to all agree they’re not,” Burgess stated.
Sen. Doug Broxson, R-Gulf Breeze, warned of “adverse potential,” however voted for SB 54 as a result of staying with no-fault will not be an choice.
“We’re going to strive it,” he stated. “We’ve been engaged on this for some time. (Right here’s) one thing we are able to vote on.”
That’s no purpose to undertake laws affecting 16 million Floridians, Brandes stated.
“Nancy Pelosi famously stated we’ve got to go the invoice in an effort to discover out what’s in it,” he quipped. “On this case, we’ve got to go the invoice to learn how a lot it prices. That’s no approach for the Florida Senate to do enterprise.”
