On April 30, 2021, Florida’s lawmakers passed Senate Bill 54, which repeals Florida’s no-fault auto insurance system. The Bill must still be approved by Gov. Ron Desantis for these changes to take effect.
Florida’s current no-fault law requires drivers to carry $10,000 in personal injury protection (“PIP”) insurance. Should Gov. Desantis approve the Bill, beginning January 1, 2022, Floridians will no longer be required to carry PIP insurance, but instead will be required to purchase bodily injury (“BI”) liability insurance with minimum per accident limits of $25,000 of coverage per person, and $50,000 total per accident. Currently, Florida is one of only two states without a requirement that drivers carry BI insurance.
What is the difference between PIP and BI insurance?
PIP insurance pays a portion of your medical bills and lost wages if you are injured in an auto accident regardless of who is at fault for the accident. BI liability insurance provides coverage for other individuals’ bodily injuries (or death) and resulting damages in the event that you are at fault for an accident.
What could this mean for you if you are involved in an accident?
Practically, Florida’s no-fault system requires minimal insurance that is inadequate to compensate accident victims for the medical expenses and lost wages that are often incurred. If passed, Floridians injured in an automobile accident that is not their fault may have additional protection that was not previously required by law. However, opponents of the Bill speculate that insurance rates will go up, leading to more uninsured drivers. Regardless of the outcome, it is still strongly advisable that you purchase Uninsured/Underinsured Motorist Insurance.