Florida legislators are moving to discontinue no-fault coverage, with both the House of Representatives and Senate proposing legislation.
The new law would take effect January 1st of next year and would require all drivers to carry $25,000 in bodily injury and death coverage. Coverage of $50,000 would be required for 2 people. Ending no-fault, the responsible party’s insurance would be responsible for payment.
The move is an attempt to lower premium prices. Florida is continuously at the top of the list in term of insurance costs and removing no-fault is expected to reduce costs as drivers move from $10,000 minimums to $25,000. As most drivers already have $25,000 coverage, the new policy pricing is expected to go down.
Insurance carriers are less optimistic as they believe the cost of basic insurance might go up, forcing even more drivers to drive without auto insurance. It is estimated that an approximate 20% of Florida drivers are not insured.