Florida Bill Ending No-Fault Auto Insurance Law Returns After DeSantis Veto, Advances

TALLAHASSEE—Four years after Gov. Ron DeSantis vetoed a bipartisan bill that would have eliminated the requirement for Florida drivers to buy personal injury protection, the measure, which passed its first House committee Thursday, has returned.

Filed by Republican Rep. Danny Alvarez, HB 1181 swaps the state's no-fault automobile insurance system with a fault-based one. It comes years after DeSantis vetoed a similar measure in 2021 and weeks after the governor indicated that he intends to keep the state's auto laws as is.

But Alvarez, along with 163 pro-Trump bikers from the St.Pete-Clearwater area, says that doing nothing puts motorists at risk, burdens car crash victims with the bill, and needlessly requires Floridians to pay for the mandatory personal injury protection (PIP), which doesn't cover "a fraction" of the cost.

"We promise [Floridians] the free state of Florida and then we price them out of the very thing we told them we stood for," Alvarez said in the House Civil Justice and Claims Subcommittee Thursday morning, referencing Florida's status as the state with the second-highest car insurance rates nationwide.

He explained that a driver who causes an automobile accident would be fully liable for damages under the bill. The victim would not be required to seek recovery from their own insurer (as PIP currently provides), and could instead sue the offending driver for any damages.

HB 1181 would eliminate the mandate that Florida drivers purchase PIP, which covers up to $10,000 in damages. Instead, drivers must carry $25,000 in bodily injury coverage for one person and $50,000 for two or more people per incident plus $10,000 in property liability coverage, the Florida Phoenix reported.

What Do Floridians Think About the Bill?

A group of 163 Florida bikers adorned in matching black shirts reading "Trump Bikers" and "Make Insurance Affordable Again," met outside the state Capitol ahead of the 8 a.m. meeting.

DeSantis vetoed the 2021 bill after it passed the House in a 100 to 16 vote and the Senate 37 to 3. He argued that while the PIP system is flawed, the measure did not "adequately address" the auto insurance crisis. At his State of the State address, he doubled down.

"If they have a reform where we can show that it’s going to lower rates, it’s fine. But let’s just be clear...That’s something that people from the legal and the trial bar have wanted to do," he said. "Why would they want to do that? Obviously, they see that there’s opportunities for them to make money off of it.”

A swath of Florida's insurance lobby echoed the governor's concerns during Thursday's committee hearing, noting that auto insurance rates have fallen between 6 percent and 11 percent since 2023. While this decrease is visible, they argue that repealing PIP and mandating bodily injury may lead to fewer Floridians becoming insured and more lawsuits.

"The majority of our member companies have filed PIP rate decreases, from 8 to 15 percent," said Michael Carlson, the President of the Personal Injury Federation. "That means motorists are paying less for PIP now than they were before 2023.

"Today, if you have a $10,000 claim or below, there's not a lawsuit over it," he continued. "You go to PIP, you have PIP cover you. These small-dollar claims will generate lawsuits."

The bill ultimately passed the subcommittee in a 13 to 2 vote, with Republican Reps. David Borrero and Kimberly Berfield were the sole "no" votes. It will advance to the Insurance and Banking Subcommittee.