By 2022, almost all motorists in Florida might have new auto insurance policies. Although the intention is good, the SB 54 bill that’s currently being considered by Florida officials may pose problems to FL drivers. It proposes the elimination of PIP or personal injury protection coverage in the state and considering requiring mandatory BI or bodily injury limits of $25,000 for each individual and $50,000 for each accident, plus an optional $5,000 and/or $10,000 in MED or medical payments coverage.
If Governor Ron DeSantis signs the bill, no-fault auto insurance would be a thing of the past in the sunshine state, which means that motorists won’t be required to have PIP coverage but will be required to carry bodily injury coverage instead.
The End of PIP Means Higher Auto Insurance Rates for Florida Drivers
The American Property Casualty Insurance Association (APCIA) and the Personal Insurance Federation of Florida (PIFF) are calling on the governor to reconsider the legislation. They argue that given the financial struggles that the average person continues to face because of the covid-19 pandemic, this isn’t really the time to overhaul policies that would directly impact motorists and impose more financial burden on them, especially on people who can barely afford it.
Critics also suggest the delay of the bill until lawmakers could obtain updated estimates on potential insurance costs. Floridians already have the highest insurance rates nationwide. Unfortunately, if a person is already struggling with their finances and just purchasing PIP today, their insurance rates could increase by up to 50%.
Sponsors Cite Eliminating Fraud as Motivation for the Bill
Bill sponsor Senator Danny Burgess claims that the bill’s “balanced” proposal would lower most motorists’ insurance rates with the shift to BI coverage. The reason for this, he states, that because the bill will eliminate fraud, rates would also be lowered. However, the APCIA states that from findings through independent actuarial estimates, motorists will face severe consequences if the bill passes.
A lot of Florida motorists are already uninsured and increasing the minimum auto insurance coverage amounts could result in more motorists not having proper coverage. According to APCIA, the estimated average requirement of a mandatory medical payments and liability coverage package would raise the cost of auto insurance by up to $344 or 23%. The other proposed rules likewise have the potential to increase costs astronomically by up to $805 annually for low-income motorists who buy minimum coverage levels.
Further, critics point out that the main objective of any reform or repeal of the state’s no-fault insurance system must be to decrease the costs for policyholders. Meaningful and practical reforms to the system must also include productive reforms to bad faith laws by protecting the rights of policyholders, reducing fraud opportunities, and mitigating lawsuit abuse effectively.
Talk to a Reputed Florida PIP Claims Attorney Now
For more questions about the repeal of PIP insurance and what this could mean for you, contact Demand The Limits at 561-600-3555 or online to arrange a free consultation with one of our Florida PIP claims lawyers now.