Gov. DeSantis Vetoes No-Fault Repeal Legislation
Opponents of Senate Bill 54, which passed Florida’s state congress in April, got a win this week as Governor Ron DeSantis’s vetoed the bill that was set to repeal Florida’s Motor Vehicle No-Fault Law and its Personal Injury Protection (PIP) insurance requirement, replacing it with mandatory bodily injury coverage, a mandatory death benefit, and an “opt-out” medical payments coverage modeled on PIP. In his veto letter, DeSantis wrote that, “while the PIP system has flaws and Florida law regarding bad faith is deficient … SB 54 does not adequately address the current issues facing Florida drivers and may have unintended consequences that would negatively impact both the market and consumers.”
There was mounting pressure on Gov. DeSantis from critics of the bill who believed that ending Florida’s no-fault rule would push up rates for many drivers. Analysis conducted by Pinnacle Actuarial Resources indicated that auto insurance premiums would have increased by an average of $202 for Florida drivers — and much more for those buying the minimum coverage — if the no-fault insurance system that has been in place in for decades in Florida was repealed. The Florida Insurance Council, the American Property Casualty Insurance Association and the Florida Chiropractic Physician Association also took part in the veto campaign, stating:
“An APCIA analysis and a study commissioned by the Florida Office of Insurance Regulation found that SB 54 was likely to significantly increase costs for Florida drivers and have the most severe impact on drivers who purchase minimum limits. In Florida, approximately 40% of drivers carry minimum limits. Skyrocketing costs could have also resulted in coverage becoming unaffordable for many, leading to more uninsured drivers on Florida’s roads,” said Logan McFaddin, assistant vice president of state government relations for the APCIA.”
“Moving forward, we hope any proposals to reform or eliminate Florida’s no-fault auto insurance system will reduce consumer costs, combat rampant lawsuit abuse by implementing meaningful bad faith reforms, and prevent or minimize fraud. APCIA will continue to be resource for Florida legislators on this issue should they revisit it in the upcoming legislative session.”
