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Florida No Fault Repeal – Where Does it Stand and What Does it Mean?
In April, the Florida Legislature passed a bill (SB 54) that, if it had gone into effect as
planned on January 1, 2022, would have repealed the Florida No Fault Statute. The bill
received popular support, passing in the House with a vote of 100 to 16 and in the Senate
with a vote of 37 to 3.
The current Florida No Fault system requires Florida drivers to carry a minimum of
$10,000 in no fault (PIP) benefits. PIP coverage can pay for a percentage of medical bills
and, in some cases, compensate accident victims for a percentage of their wage loss. It also
pays right away and regardless of whether the individual was at fault for the accident.
Under SB 54, PIP coverage would have been eliminated, and instead, Florida drivers
would have been required to carry a minimum of $25,000 per person and $50,000 per
accident in bodily injury liability coverage on their auto insurance. This means that in the
event of an auto accident, in theory there would be at least $50,000 total in coverage
available to the victims, with no individual victim able to claim more than $25,000.
As of now, Florida does not require drivers to carry any bodily injury liability coverage,
which unfortunately means than in some circumstances there is no insurance coverage at
all, beyond the $10,000 in PIP, to compensate victims for their medical bills, wage loss,
future medical expenses, or pain and suffering.
Last month, Governor Ron DeSantis exercised his right to veto this bill, preventing it from
becoming law. This means that the current No Fault system that is in place will continue,
and the Florida Legislature will have to go back to the drawing board.
Keep in mind that even if SB 54 had gone into effect, it would still be crucial for Florida
drivers to purchase uninsured/underinsured motorist (UM) coverage on their vehicles.
Even with mandatory bodily injury liability coverage, having UM is the only way to
guarantee that you have enough coverage to protect you and your loved ones. Certainly,
with no liability coverage requirement at all, UM coverage remains the most important
coverage to purchase.
Be sure to check your policies and make sure you understand your particular coverage,
because you cannot purchase what you need after the accident has happened. Making sure
that you have collision coverage, rental coverage, understanding your deductibles, and
knowing whether you have stacking, or non-stacking UM coverage are all important. We
would encourage you to consult with an insurance professional in purchasing your auto
insurance so that you can make sure you are comfortable with your coverage and that you
understand it.
Stay safe out there and know that we are always here for you.
Chuck and Sarah