Lawmakers Continue to Take on Insurance Industry Grab with HB 1181

TALLAHASSEE, Fla. — In a significant move toward reforming Florida’s auto insurance system, the House Insurance and Banking Subcommittee advanced HB 1181 by a 17-1 vote on Thursday. Sponsored by Representative Danny Alvarez and Representative Meg Weinberger, the bill seeks to repeal the state’s decades-old Personal Injury Protection (PIP) insurance requirement and replace it with Mandatory Bodily Injury (MBI) coverage. Aiming to reduce costs for Florida drivers, HB 1181 introduces a responsibility-based framework emphasizing fairness, accountability, and long-overdue affordability.

“Florida today has the HIGHEST premiums for the lowest amount of coverage,” said Representative Alvarez.

Representative Weinberger isn’t mincing words about the broken auto insurance industry in Florida either, stating how just recently her own family was dropped for filing three no-fault PIP complaints. “Maybe if insurers actually paid their claims, we wouldn’t have to file lawsuits,” said Weinberger.

This bill gives drivers the power to choose the coverage they need instead of being forced to buy into a broken Personal Injury Protection (PIP) system.

Florida is one of only two states still clinging to this outdated system that is also a target for fraud and abuse. The bill replaces PIP with Mandatory Bodily Injury coverage, finally bringing Florida in line with 48 other states. It would require drivers to carry at least $25,000 in bodily injury coverage per person and $50,000 per accident, ensuring at-fault drivers are held accountable while eliminating wasteful insurance costs.

Enacted in 1971, PIP was supposed to ensure quick medical payments and reduce costs, but those promises have not been kept. Despite having the lowest insurance requirements in the country — only PIP and property damage — Florida drivers pay the highest premiums in the nation. PIP coverage has remained stagnant at $10,000 since 1979, which equates to just $84,745 in today’s medical costs. Meanwhile, over 90% of Floridians already have health insurance, making PIP redundant and unnecessary coverage.

According to the Office of Insurance Regulation (OIR), 64% of Floridians already carry enough insurance to meet the bill’s new requirements, proving that the shift away from PIP will not be a burden on most drivers.

Various actuarial studies show that repealing PIP could reduce auto insurance costs by as much as 36% (Alexander 2021) and by at least 10% (OIR/Pinnacle 2016). This translates to annual savings between $1,400 and $371 for most drivers. Even in regions where costs might increase slightly, such as a projected $16.46 increase in St. Johns County, areas like Miami-Dade could see reductions of up to $258.74, with a statewide average savings of $68.12.

In 2025 the average of $3,865 per car annually, according to a February 11, 2025, Forbes analysis. That’s 1.5 times the national average of $2,081 per year.

The fight for HB 1181 aligns with President Donald Trump’s call to lower auto insurance rates. In a tweet during the campaign, Trump told Florida voters — “Your automobile insurance is up 73% — VOTE FOR TRUMP, I’LL CUT THAT NUMBER IN HALF!”

After today’s hearings several high-profile Trump social media presences are wading into the fight for lower insurance in Florida. All noting Florida’s auto rates are through the roof.

Opponents of the measure claim that removing PIP could lead to higher litigation costs, but supporters of the bill have countered those claims saying that they are nothing more than another scare tactic meant to keep Floridians paying into a broken system.

As the battle for HB 1181 heats up, all eyes are on the Florida Legislature to see if lawmakers will finally deliver the insurance reform Floridians deserve.