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Wednesday, 24 February 2021 23:17

Legislation to Repeal Florida's Motor Vehicle No-Fault Law Passes First Committee

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The Florida Senate Committee on Banking and Insurance, chaired by Sen. Jim Boyd (R-Bradenton), on Jan. 26 passed Senate Bill 54, Motor Vehicle Insurance, by Sen. Danny Burgess (R-Zephyrhills.)

The legislation repeals Florida’s current motor vehicle no-fault law, which requires drivers to carry personal injury protection coverage, instead requiring that drivers carry bodily injury liability coverage. 

 

The bill also creates best practice standards for handling motor vehicle insurance claims.
 
“For everyone’s protection, drivers must be insured at sufficient levels. Our goal is to lower the number of uninsured and underinsured drivers and provide a greater safety net in the event of an accident,” said Senate President Wilton Simpson (R-Trilby.)

 
“Florida’s no-fault law has failed to significantly reduce litigation. Meanwhile, the cost of PIP remains high, when compared to the benefits it provides,” said Burgess. “Senate Bill 54 transforms this ineffective and outdated insurance structure, which we believe will lead to a more stable insurance market and better outcomes for insured Floridians when they face the unfortunate and in some cases tragic circumstance of being involved an a serious vehicle accident.”
 
Repeals No-Fault, Requires Bodily Injury Liability Coverage

 

SB 54 repeals the no-fault law, which requires every owner and registrant of a motor vehicle in the state to maintain Personal Injury Protection (PIP) coverage. The bill enacts financial responsibility requirements for liability for motor vehicle ownership or operation, as follows:

 

  • For bodily injury or death of one person in any one crash, $25,000
  • Subject to that limit for one person, $50,000 for bodily injury or death of two or more people in any one crash
  • Retains the existing $10,000 financial responsibility requirement for property damage
  • Revises required coverage amounts for garage liability and commercial motor vehicle insurance, and increases the cash deposit amount required for a certificate of self-insurance establishing financial responsibility for owners and operators of motor vehicles that are not for-hire vehicles 
  • Repealing the no-fault law eliminates the limitations on recovering pain and suffering damages from PIP insureds, which currently require bodily injury that causes death or significant and permanent injury
     

Requires Medical Payments Coverage

 

SB 54 requires insurers to offer medical payments coverage (MedPay) with limits of...


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