Florida's No-Fault Auto Insurance Drives Up Premiums for Safe Drivers

Florida's no-fault auto insurance system leads to rising premiums, impacting safe drivers who see rate increases despite clean driving records. The system spreads costs of accidents, including bodily injury and property damage, across all drivers rather than holding at-fault drivers financially accountable.

This approach effectively socializes losses of high-risk drivers, creating higher expenses for those with safer driving practices. The author advocates for legislative change to address premium hikes and proposes a state-run insurance option targeting low-risk drivers to encourage competition and reward safety. Such reforms could potentially reduce accidents and claims costs by incentivizing responsible driving and lowering premiums for safer motorists. However, legislative appetite for revisiting Florida's no-fault insurance framework remains limited currently.