Gisela Castro

CEO , Complete Insurance Agency


Is Florida Going to Eliminate No-Fault Insurance and Would How That Affect You?

For more than 50 years, Florida law has required drivers to carry no-fault auto insurance, also known as personal injury protection (PIP). PIP is designed to cover the cost of medical care, losses and damages regardless of who was at fault for an accident.

The state has tried to repeal the no-fault law a few times, but in February 2021, the Senate Judiciary Committee succeeded in approving bill SB 54, which would eliminate the PIP requirement. Drivers would instead by required to carry bodily injury coverage with their auto insurance policy.

But why does the state want to eliminate no-fault insurance? If the state succeeds, how will that affect you as a driver?

Why Does Florida Want to Eliminate No-Fault Insurance?

Florida wants to eliminate no-fault insurance for a variety of reasons, but lawmakers have said that their aim is to reduce insurance costs for motorists.

Other issues with bad faith lawsuits and lack of coverage are also reasons to eliminate PIP.

Drivers are Paying High Premiums for Insurance

One of the main goals of repealing no-fault insurance is to help drivers save money on auto insurance costs. Florida ranks third in the country for high car insurance premiums.

That being said, data shows conflicting results as to whether the move would actually save drivers money.

PIP Coverage Limits are Too Low

Currently, drivers in Florida are only required to carry $10,000 in PIP coverage, and most people only purchase the minimum coverage. If your losses exceed this limit, which is common, drivers can run into problems.

Unfortunately, the no-fault system also limits personal injury lawsuits unless the accident causes severe injuries.

If your costs exceed your PIP coverage and your injuries aren’t serious, your medical bills may not be covered entirely.

Bath Faith-Related Lawsuits

Another aim of Senate Bill 54 is to create a framework for setting bad-faith-related lawsuits stemming from car insurance claims.

How Would Eliminating No-Fault Insurance Affect You?

The new bill outlines a number of new requirements for drivers, and this would mean that you would need to ensure that your policy has the right amount of coverage. The new requirements include:

  • Bodily injury coverage of at least $25,000 for one person in any crash; $50,000 for two or more people in any single accident
  • $10,000 for property damage

Under the new law, insurance companies would also be required to offer MedPay (medical payments) coverage and with limits of either $5,000 or $10,000 to cover medical care for the insured motorist.

Repealing the no-fault aspect of the law also gives motorists the ability to file a personal injury lawsuit if their losses, damages and pain and suffering exceed the policy’s maximum limit.

So, if lawmakers succeed in repealing the no-fault insurance system, drivers would be able to:

  • Recover damages through personal injury lawsuits
  • Potentially save money on their car insurance premiums
  • Be required to prove the other driver was at-fault in order to have repairs and medical bills covered

It remains to be seen whether or not no-fault insurance will be repealed and what the full ramifications will be.