Florida no-fault auto insurance repeal on no-doubt route to Senate floor

(The Center Square) – A no-fault repeal bill, which could affect motor vehicle insurance rates for more than 16 million Florida drivers, is poised for floor votes soon after the legislative session begins March 2.

The Senate Judiciary Committee Monday in a 7-2 vote approved Senate Bill 54, advancing the no-fault repeal measure to the Rules Committee, it’s last stop before the Senate floor. It’s not on the panel’s Feb. 18 agenda as of Tuesday.

In passing through two committee hearings, SB 54 has accomplished what similar House bills in 2018 and 2019 failed to do – gain traction in the Senate.

And now, a House companion has emerged. Rep. Erin Grall, R-Vero Beach, filed House Bill 719 on Feb. 3. It has not yet been assigned committees. In 2020, Grall’s HB 771 passed three House panels but died on the floor.

SB 54, co-filed by Sens. Danny Burgess, R-Zephyrhills, and Darryl Rouson, D-St. Petersburg, would repeal the state’s 50-year-old no-fault law and replace its personal injury protection (PIP) system with a mandatory Bodily Injury system.

Florida’s 1970 Motor Vehicle No-Fault Law requires owners maintain PIP coverage of $10,000 in medical, disability and funeral expenses, without regard to fault, and subject to a $2,500 limit for non-emergency medical care. In exchange for PIP coverage, vehicle owners are immune from tort claims.

SB 54 would require drivers by Jan. 1, 2022, secure BI coverage of at least $25,000 for death or injury of one person, $50,000 for injury or death of two or more people and $10,000 for property damage.

Florida’s 16 million licensed drivers pay the nation’s third-highest car insurance rates, according to an Insure.com 2019 analysis. A 2019 Insurance Information Institute study estimated 26.7 percent of Florida drivers – more than 4 million – are uninsured.

Repeal supporters maintain the no-fault system is rife with fraud and the $10,000 coverage limit insufficient. Repealing PIP no-fault and replacing it with mandatory BI would save Florida drivers, on average, $81 each annually, proponents claim.

Critics say BI doesn’t pay out automatically, potentially leaving providers – such as hospital emergency rooms – waiting for payments.

Opponents cite a 2016 study commissioned by the state’s Office of Insurance Regulation (OIR) that BI would cost Floridians $143-$350 a year each and put more uninsured drivers on the road.

A Pinnacle Actuarial Resources study estimated repealing no-fault would incur a $536 million “negative impact to the health care system,” an aspect cited by Florida Chief Financial Officer Jimmy Patronis earlier this month when he said repealing no-fault would raise insurance rates on “those that can least afford it.”

During Monday’s Senate Judiciary Committee hearing, SB 54 was amended to lower liability minimums for drivers with incomes below 200 percent of the federal poverty line or are full-time students, and require a deductible of up to $200 for auto glass repairs.

Florida Justice Association President Eric Romano challenged the lower liability standards, saying “it basically would create two separate classes of drivers.”

“The idea here being the first class of drivers could purchase insurance coverage at lower limits presumably at a lower cost,” he said. “But the … amendment does not require the insured customer to provide any proof they meet those qualifications. It creates what is essentially an unenforceable honor system with no consequence.”

Proponents said glass repair businesses have been abusing the state’s zero-deductible auto glass repair law for years, citing examples of employees roam parking lots offering free windshield inspections and recommending repairs.

Sens. Perry Thurston, D-Fort Lauderdale, and Audrey Gibson, D-Jacksonville, raised objections to the $200 deductible.

“Isn’t it a consumer’s choice to determine whether their windshield is cracked enough?” Gibson asked.

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