The American Property Casualty Insurance Association (APCIA) is urging lawmakers in Florida to reject House Bill 1181. This bill proposes to eliminate the state’s no-fault auto insurance system, which the APCIA warns could lead to higher insurance costs and increased legal disputes.
Adam Shores, the APCIA’s senior vice president for state government relations, expressed concern after the bill advanced out of the Florida House Insurance & Banking Subcommittee. He highlighted that repealing the no-fault system could particularly hurt low-income drivers who may struggle to afford higher premiums. Shores noted that some major auto insurers have recently lowered their rates by 6% to 10.5%, and these positive trends might be reversed if the bill passes.
The proposed legislation would also raise the minimum required auto insurance coverage levels. APCIA argues that this change would disproportionately impact drivers who currently only purchase the minimum coverage. Shores warned that if insurance becomes too expensive, some drivers might choose to drive without any coverage at all.
The APCIA credited recent legal reforms from 2022 and 2023 for helping to stabilize Florida’s insurance market and reduce litigation, which in turn has helped lower costs. They believe that repealing the no-fault system now could undo these improvements.
Shores urged the Florida Legislature to vote against HB 1181, emphasizing the need to maintain the current system for the benefit of all drivers in the state. The APCIA represents a wide range of insurers across the country, advocating for competitive insurance markets that serve families and businesses effectively.
As the debate continues, many are left wondering whether Florida should keep its no-fault auto insurance system or move toward a different approach.