Florida May Scrap No-Fault Auto Insurance Law

Frustrated by a recent court decision temporarily blocking part of Florida’s no-fault auto insurance law reformed last year, state lawmakers are considering scrapping the entire law. Current proposals would reinstate to a tort system and mandate that all drivers purchase bodily injury coverage.

Florida Second Judicial Circuit Court Judge Terry Lewis recently issued a temporary injunction against parts of last year’s personal injury protection (PIP) reforms that limit medical benefits for non-emergency injuries and exclude acupuncturists and massage therapists from treating accident victims.

Florida Senate Banking and Insurance Committee Chair Bill Simmons (R-Altamonte Springs) said the injunction, which is currently being appealed, is creating uncertainty in the market. As a result, he said, it is time for the Legislature to consider whether the state’s personal injury protection law remains a viable form of auto insurance.

“If you have been here very long at all we have dealt with this issue every four or five years with the view that next time there ain’t going to be any next time,” said Simmons, adding that last year’s reforms were “as good a solution as possible for a system that is bleeding profusely.”

Simmons is proposing that the current no-fault law that calls for drivers to carry $10,000 in PIP coverage be replaced by one that calls for drivers to have $10,000 in property damage and $25,000 in bodily injury coverage per person for a total of $50,000 per occurrence.

Insurance representatives offered tentative support but expressed concerns over pricing and the possible consequences of moving to a tort system. Read the full story.

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