Florida’s Senate Bill 54 and House Bill 719 would eliminate the state’s existing no-fault auto insurance system and replace it with a mandatory bodily injury coverage system.
According to data assembled by the American Property Casualty Insurance Association (APCIA), this change would have a significant financial impact on low-income drivers.
Approximately 40 percent of Florida drivers carry minimum insurance limits below those proposed in the legislation. These drivers could see their auto insurance costs increase between $165 and $876 annually, according to the APCIA.
“Low-income drivers who purchase minimum limits in Florida are likely to be hit the hardest financially if Florida’s no-fault auto insurance system is eliminated and replaced with a mandatory bodily injury coverage system,” Logan McFaddin, APCIA assistant vice president of state government relations, said. “This could result in even more uninsured motorists on Florida’s roads, which is a serious concern as Florida has one of the highest rates of uninsured motorists in the nation at approximately 20 percent.”
Florida drivers pay the nation’s highest premiums, according to MarketWatch. The average Florida driver is projected to see auto insurance costs rise by an average of 5 percent, a preliminary analysis conducted by Milliman said.
APCIA is a national trade association for home, auto, and business insurers.