Florida Senate proposes new bill to remove no-fault insurance system

PANAMA CITY, Fla. (WMBB) — The Florida Senate introduced a bill last month that would get rid of the no-fault auto insurance system.

The mandatory coverage means each driver turns to their own car insurance coverage to make accident claims.

It also requires all drivers to carry at least $10,000 in personal injury protection coverage.

Ellis Insurance Agency Owner Johnny Ellis said it’s time to get rid of no-fault, calling personal injury protection a “fraud fest.”

“It’s easy money that attorneys and medical people grab at and they get the $10,000 without breaking a sweat and then they don’t bother it anymore,” Ellis said. “So, it’s a quick $10,000, but it has been bleeding the companies for no good reason a lot of time people that aren’t even injured they’ll use up most of theirs just by running by a hospital.”

Instead of personal injury protection, drivers would carry bodily injury coverage.

Ellis said leaving the no-fault law unchanged will cost more in the long run.

“It’ll cost more to keep it because PIP’s been so abused and it’s, it’s so bloated the way that it is and such an easy target for picking and if they would get rid of it and actually have people to be responsible for themselves, then it would make a difference in not having to pay for the PIP then your bodily injury and your property damage,” Ellis said.

If the bill goes through, Ellis believes rates will drop.

“I think they would come down a little bit because if you’re not paying for PIP and the bodily injury and it would balance itself out, and it would come down a little I would think because you haven’t got all the fraud that’s in PIP right now,” Ellis said.

Governor Ron DeSantis vetoed a similar bill in 2021.

If the bill is passed this would take effect in July 2024.