Senate Interim Project Report: The Effect of Repealing Florida’s Motor Vehicle No-Fault Law

The Forida Senate Banking and Insurance Committee has released its interim project report on the repeal of Florida’s Motor Vehicle No-Fault law.

To read the report summary, click here.

To read the full report, click here.

The report notes that recent inconsistencies in motor vehicle rate filings merely reflect each insurer’s estimate of the effect of repeal of No-Fault.  The actual loss experience will eventually determine the lasting impact on premiums.

The report concludes by saying:

The purpose of this report is not to recommend whether the Legislature should or should not reenact No-Fault, but to evaluate the impact of repeal. If No-Fault is to remain repealed, the options to consider are one or more of those adopted in other tort states:

1. Mandate that vehicle owners purchase bodily injury liability coverage, as required in 36 of 38 tort states;

2. Require that insurers offer PIP coverage, as required in nine “add on” tort states (that do not restrict recovery in tort);

3. Mandate that vehicle owners purchase PIP, as required in three of the nine “add-on” tort states; or

4. Do not change the current law and do not require PIP or BI coverage, as provided in two states.  The Legislature also has the option of restoring the repealed No-Fault provisions that are necessary to enforce the current property damage liability requirements.

 

Should you have any questions or comments, please do not hesitate to contact this office.