DeSantis weighing whether to sign bill that would end Florida’s no-fault insurance system

Reporter: Anika Henanger
Published: Updated:
Gov. Ron DeSantis may sign a law that would end you buying no-fault car insurance and replace it with minimum levels of coverage. (CREDIT: WINK News)

Your car insurance rate could change with the stroke of the pen.

Gov. Ron DeSantis may sign a law that would end no-fault car insurance and replace it with minimum levels of coverage.

DeSantis said he is facing pressure from both sides of the issue.

State lawmakers approved the bill last month.

New numbers show how much your wallet could be impacted if he signs it. One study finds average premiums could go down by 5% while another discovered premiums would actually go up anywhere from 5% to 50% depending on the coverage you currently have.

Florida passed the current no-fault system in the 1970s to streamline court proceedings. Instead of suing over minor crashes, all Florida drivers had to buy no-fault insurance. The no-fault insurance covers medical treatment and some lost wages up to $10,000.

State lawmakers passed the new bill this year, concerned about fraud in the system.

“I’ve seen many clients who required surgery after being injured in a car accident and they have to pay for that surgery bill because of the fact that the other driver did not carry any insurance coverage,” said attorney Matt Noyes. “It’s crazy in Florida that we have been allowed for so long to not be required to carry mandatory bodily injury liability coverage.”

Some who want to keep Florida’s no-fault system as-is point to Colorado, which scrapped its no-fault system in 2003.

Rates went down at first but then years later shot up to among the highest in the nation.

Insurance experts say if drivers already buy more coverage than what the legislation requires, their premiums, in theory, should go down.

However, around 40% of insured drivers do not buy bodily injury coverage at levels required in the legislation, meaning higher bills.

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