Florida Legislators Weigh Second Attempt to Repeal No-Fault Car Insurance Laws

Florida drivers may soon have to purchase bodily injury liability insurance instead of personal injury protection (PIP) coverage to meet the state’s minimum insurance requirements. In early March, Florida legislators introduced a bill to the state Senate and House of Representatives to repeal the state’s existing no-fault car insurance law.

If passed, the bill would change the minimum liability coverage requirements drivers must have when registering their vehicles.

The current no-fault insurance law in Florida requires all drivers to purchase and maintain $10,000 in personal injury protection (PIP) coverage and $10,000 in property damage liability coverage. The minimum PIP insurance in Florida covers 80% of all necessary medical expenses up to $10,000 for a covered injury, regardless of who caused the accident.

The new bill would still require $10,000 in property damage liability, but it would add $25,000 per person and $50,000 per accident in bodily injury liability as a requirement to replace PIP coverage.

It’s unclear whether this change would save drivers money on car insurance.

The Florida Office of Insurance Regulation published a report in 2016 that estimated Florida drivers would save 5.6% on car insurance costs following a switch to bodily injury liability coverage. But a 2018 report from the actuarial consulting firm Milliman estimated that ending the no-fault insurance system would increase premiums by 5.3%, or $67, annually.

In 2024, Florida’s average cost for full-coverage car insurance was $3,166 per year, according to Insurify data. Data analysts predict that cost will increase by 10% in 2025.

Second attempt to repeal Florida’s no-fault law

Florida first implemented the no-fault insurance system, with a minimum requirement of $10,000 in PIP coverage, in 1979. The required minimum amount of coverage hasn’t changed since then.

The Florida legislature passed a bill to repeal no-fault laws in 2021. But Gov. Ron DeSantis vetoed it due to concerns that it would lead to increased premiums and a higher number of uninsured drivers.

What’s next? Working through the Legislature, DeSantis opposes

The bill needs review from committees in both the House and Senate before it can reach each floor for a vote. If the House and Senate both pass the bill, it will go before DeSantis. However, the governor said he opposes the bill following his State of the State Address to the Florida Legislature on March 4.

“If they have a reform where we can show that it’s going to lower rates, it’s fine,” DeSantis said to reporters. “But let’s just be clear. … We know that’s something that people from the legal and the trial bar have wanted to do. And so why would they want to do that? Obviously, they see that there’s opportunities for them to make money off of it. I don’t want to do anything that’s going to raise the rates.”

Rep. Danny Alvarez, a sponsor of the House bill, holds an opposing view. Alvarez told WPTV: “I don’t want to be responsible for someone’s rates going up when inflation is bad, and I want you to know that we are very sensitive to that. … Overall, we believe, like other states, it will bring the rates down when you get the major source of fraud out of the system.”

If the bill becomes law, it will go into effect on July 1, 2026.

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