Florida Considers Major Shift in Auto Insurance Policy with Proposed Repeal of No-fault Law

A bill currently under review in the Florida House of Representatives could substantially transform the auto insurance market by repealing the state's no-fault auto insurance law. If enacted, this legislation would eliminate the requirement for personal injury protection (PIP) and instead mandate bodily injury liability coverage of $25,000 per person and $50,000 per accident, effective July 1, 2026.

This shift from a no-fault to a fault-based system has sparked concerns from industry groups, including the American Property Casualty Insurance Association (APCIA), highlighting potential increases in insurance premiums and litigation. Florida, already holding the highest average premium for minimum auto coverage, could see further instability in insurance rates and market participation.

The bill also includes plans for the Florida Office of Insurance Regulation to oversee the transition, backed by an allocation of $83,651 from the Insurance Regulatory Trust Fund. There have been previous attempts to repeal this policy; notably, a similar bill was vetoed by Governor Ron DeSantis in 2021 over concerns about affordability and availability of insurance.