Florida’s auto insurance coverage legal guidelines date again to 1971, when the typical value of a brand new automobile was $3,900 and a gallon of fuel was beneath 40 cents.
Floridians now pay almost $29 billion yearly for auto insurance coverage, the best per-vehicle charge within the nation. A St. Petersburg-based analysis institute has outlined how hovering prices disproportionately have an effect on accountable drivers.
The Florida Coverage Challenge’s (FPP) newest report discovered that 20% of motorists lack any insurance coverage. Former senator Jeff Brandes, founding father of the assume tank, mentioned one other “25% or extra” make the most of the state’s low minimal authorized necessities.
“You principally have a 50-50 shot of getting hit by someone who both has no insurance coverage or doesn’t have sufficient,” Brandes informed the Catalyst. “We actually haven’t modified Florida’s auto insurance coverage legal guidelines since 1971, and even the 1971 regulation shouldn’t be adjusted for inflation.”
The FPP enlisted a nationally acknowledged knowledgeable from the College of Alabama, Dr. Lars Powell, to compile the “Finest Practices for Vehicle Insurance coverage in Florida.” On common, drivers pay almost $2,400 yearly for protection, which far surpasses the nationwide common of roughly $1,700.
The report notes that 80% of motorists should shoulder 100% of the prices, which exacerbates affordability points. Brandes mentioned the outdated system penalizes accountable drivers.
Florida requires drivers to have not less than $10,000 in private damage safety and $10,000 in property harm. “They can’t even cowl the typical accident in America, which is $23,000,” Brandes mentioned.
Former Sen. Jeff Brandes, president of the Florida Coverage Challenge.
In a latest op-ed, the previous state lawmaker in contrast the scenario to eating at a restaurant the place 20% of grownup company depart with out paying their invoice, and one other 25% ordered off the youngsters’ menu. The supervisor then spreads the shortfall throughout those that ordered responsibly.
“If you don’t have $20,000 in protection, you can’t even get to the ER,” Brandes mentioned. Drivers should buy uninsured motorist protection, “for good cause,” and nonetheless usually battle with their provider to obtain fee.
Brandes, a St. Petersburg native, additionally famous it’s considerably cheaper to interrupt the regulation than to pay for protection. Whereas an uninsured motorist faces a $150 high-quality when stopped by police, they might pay for a brand new coverage later that day, present proof in court docket and “drop it once more.”
Florida is certainly one of 15 states that continues utilizing a “no-fault” Private Harm Safety (PIP) system. The state has the bottom minimal legal responsibility limits within the nation.
FPP’s report states that “the optimum quantity of protection shouldn’t be apparent” attributable to related tradeoffs. A rise will result in further premium prices, probably resulting in extra uninsured drivers. Nevertheless, the variety of underinsured drivers would lower.
Brandes commissioned a research by Pinnacle Actuarial Sources in 2016 as a legislator. The agency projected a 5.6% to eight.1% drop in premiums if Florida eradicated PIP and as an alternative required bodily damage protection.
FPP recommends encouraging traffic-calming infrastructure, like roundabouts, to cut back crash frequency and severity. The report additionally advocates for technology-based enforcement instruments, equivalent to license plate readers, and authorized reform to cut back litigation prices that contribute to excessive premiums.
“I don’t assume they’re doing something domestically on this,” Brandes mentioned. “I feel it is a obtrusive drawback in Florida. They might step up enforcement, however frankly, individuals are simply going to proceed doing the identical factor with out the state placing in new measures.
“It’s time to have an actual dialog in Florida. As a result of clearly, what it was in 1971 shouldn’t be the identical as what it’s at this time.”
FPP has launched reviews concerning felony justice reform, the reasonably priced housing disaster, flood and property insurance coverage and a number of other different greatest practices for statewide points since Brandes based the nonprofit and non-partisan assume tank in April 2023. He stays in frequent contact with legislators and mentioned they’d “completely” contemplate the newest analysis.
For instance, lawmakers allotted funding for automated visitors alerts following an FPP report in 2024. “I feel we now have as a lot or extra influence than just about another nonprofit within the State of Florida, as a result of we’re speaking about points which are essential and … we don’t take a Republican or Democrat perspective,” Brandes mentioned.
“We simply say what works greatest within the nation,” he added. “I feel what this does is function a catalyst for dialogue.”
To view the total report, go to the web site right here.
