Legislative Update: Florida Lawmakers Make Historic Vote to Repeal “No-Fault” Insurance

On Friday, the Florida legislature voted to repeal Florida’s no-fault car insurance requirement.  If enacted, the new law would end the longtime requirement that Florida drivers carry $10,000 in personal injury protection (“PIP”) coverage and instead require mandatory bodily injury (“BI”) coverage of at least $25,000.  Senate Bill 54 now heads to Governor Ron DeSantis for his response.

PIP coverage and BI coverage are totally different types of insurance coverage (see our prior blog here: “Florida Car Insurance 101”).  PIP coverage, sometimes called “no-fault insurance,” primarily pays for medical bills of the policyholder arising from his or her injuries regardless of which party is responsible for an accident.  PIP policies are primary over health insurance plans, and PIP policies pay out quickly.  

BI coverage, on the other hand, pays money damages for someone else’s injuries if you cause an accident and injure someone else.  Unlike PIP coverage, BI coverage doesn’t pay for the policyholder’s own injuries.  Further, because BI coverage is fault-based, the policy doesn’t pay out until a fault determination is made.  For this reason, opponents of the bill say mandatory BI coverage may leave health care providers and patients on the hook for thousands of dollars in medical bills while they wait for a claim to resolve.  Proponents of the bill point out that every state other than Florida and New Hampshire currently require mandatory BI coverage in the event a driver causes injuries to someone else, and they also argue that drivers can still purchase coverage to pay for their own medical bills.

If signed by DeSantis, the new law will take effect January 1, 2022.  We will continue to follow developments on SB 54.  If you have questions about your car insurance coverage, contact Baggett Law for a free and confidential consultation.