Giorgos Zacharia, PhD Co-founder | Insurify
Florida drivers may be required to change their car insurance coverage if a new bill in the state legislature succeeds. Early in March, Florida legislators introduced a bill aiming to replace the existing no-fault car insurance law with bodily injury liability insurance.
If enacted, this law would alter the minimum insurance coverage required for vehicle registration. Currently, Florida mandates $10,000 in personal injury protection (PIP) as well as $10,000 in property damage liability. The new proposal introduces $25,000 per person and $50,000 per accident for bodily injury liability while retaining the property damage requirement.
There is uncertainty over the financial impact on drivers. The Florida Office of Insurance Regulation's 2016 report predicted a 5.6% decrease in insurance costs, yet a Milliman report from 2018 projected a 5.3% increase in premiums. Last year, the average cost for full-coverage car insurance in Florida was $3,166 annually, with a forecasted 10% rise in 2025.
This legislative effort marks a second attempt to revoke the no-fault system, which began in 1979. A similar 2021 bill was vetoed by Governor Ron DeSantis due to concerns about rising premiums and uninsured drivers.
Before reaching the governor, the bill requires approval from House and Senate committees. DeSantis voiced his opposition following his State of the State Address on March 4, stating, “If they have a reform where we can show that it’s going to lower rates, it’s fine,” but raised concerns over potential financial motives of legal professionals, adding, "I don’t want to do anything that’s going to raise the rates."
Rep. Danny Alvarez, who sponsors the House bill, argues differently, telling WPTV that lawmakers are sensitive to inflation's effects. According to Alvarez, the initiative aims to eliminate fraud, potentially reducing rates: “Overall, we believe, like other states, it will bring the rates down when you get the major source of fraud out of the system.”
Should this bill be signed into law, it is scheduled to be implemented on July 1, 2026.
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