Florida Lawmakers Clash Over Plan to End No-Fault Auto Insurance System

Florida Lawmakers Clash Over Plan to End No-Fault Auto Insurance SystemFocus Keyphrase: Florida no-fault auto insurance repealMeta Description: Florida lawmakers are clashing over a bill to repeal the state’s no-fault auto insurance law, sparking a showdown with Gov. Ron DeSantis over rising costs, trial lawyers, and liability coverage mandates.

As tensions rise between Gov. Ron DeSantis and the Florida House over budget and tax proposals, a new battleground has emerged: the future of the state’s no-fault auto insurance law, according to a recent article by John Kennedy of Naples Daily News.

The Florida House is advancing legislation (HB 1181) that would eliminate the state’s decades-old personal injury protection (PIP) requirement and replace it with mandatory bodily injury coverage. Supporters argue this shift would better help drivers cover medical expenses after accidents, while opponents warn it could send insurance premiums soaring.

Gov. DeSantis has criticized the plan, accusing House leaders of siding with trial lawyers. He’s made it clear he’s not in favor of the repeal and appears ready to veto it—just as he did in 2021 when a similar measure made it to his desk.

“If something helps people access the courts and decent insurance coverage after a crash, we’d support it,” said House Democratic Leader Fentrice Driskell. “But it doesn’t seem like Republican leaders are on the same page at all. I’m not sure we’ll finish on time.”

The state’s PIP coverage, capped at $10,000 since the 1970s, no longer keeps pace with today’s medical costs. The proposed bill would require drivers to carry $25,000 in bodily injury coverage per person, $50,000 per accident, and $10,000 in property damage coverage by mid-2026.

While the House version is progressing, its Senate counterpart (SB 1256) has stalled. DeSantis has called the House bill a gift to personal injury attorneys, arguing it could drive up insurance costs and lead to more lawsuits.

A 2021 state report warned that removing PIP could cause insurance premiums to double or even triple in many parts of Florida. Industry groups also caution that more drivers might drop coverage altogether if costs rise.

Speaker of the House Daniel Perez, R-Miami, has defended the proposal, claiming it’s not about benefiting lawyers but about modernizing outdated insurance rules. He also pushed back on DeSantis’ criticism.

“If both sides—the trial bar and business groups—oppose it, maybe we’ve found a middle ground,” Perez said. “This isn’t about doing the trial lawyers’ bidding.”

Despite the growing tension, Perez said he still considers DeSantis a partner and friend, even as their disagreements intensify during the final month of the legislative session, set to adjourn on May 2.

Meanwhile, broader budget negotiations are adding fuel to the fire. The House and Senate remain $4.4 billion apart in their proposed spending plans, with the House also advocating for a major sales tax cut—reducing the rate by 0.75%, which would save Floridians $5 billion but further strain state finances.

DeSantis, for his part, is proposing his own $5 billion tax cut, including $1,000 rebate checks for homeowners and a larger overhaul of Florida’s property tax system he hopes to bring to voters next year.

With so much still in flux, the fate of Florida’s no-fault insurance law is shaping up to be a central piece of high-stakes end-of-session negotiations.

This article originally appeared on Naples Daily News

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