Insurance industry representatives expressed relief this week over Gov. Ron DeSantis’ veto of a proposal to repeal the state’s no-fault auto insurance system, saying that Senate Bill 54 would have led to rate increases.
DeSantis late last month vetoed the bill, which would have replaced the state’s personal injury protection (PIP) coverage with bodily injury requirements and a directive to insurers to provide options for medical payments coverage. The measure also offered a framework to deal with bad-faith insurance litigation, but the governor deemed the provisions insufficient.
“... SB 54 does not adequately address the current issues facing Florida drivers and may have unintended consequences that would negatively impact both the market and consumers,” DeSantis said in a veto message.
Insurance representatives expressed appreciation for the governor’s decision while arguing the reform measure didn’t do enough to deter bad-faith actions, which can inflate damages awards and not accurately reflect a claimant’s true losses.
“There was too much uncertainty about the cost implications of SB 54, and its impacts on drivers in Florida who can least afford a premium increase,” Kyle Ulrich, president and CEO of the Florida Association of Insurance Agents, said in an email to the Florida Record.
Michael Carlson, president and CEO of the Personal Insurance Federation of Florida (PIFF), also pointed to concerns that the proposed reform would lead to premium increases for millions of drivers and make coverage out of reach of more drivers.
“Forcing Floridians to buy more auto insurance would have been hardest on the drivers who can least afford it and would have increased the number of uninsured drivers on the road,” Carlson said in a prepared statement.
About one in five Florida drivers currently lacks auto insurance, according to an industry study released this year. The high percentage of uninsured drivers in the state is caused by a lack of affordability that is driven by PIP fraud and litigation abuse, according to PIFF.
Supporters said SB 54, authored by Sen. Danny Burgess (R-Zephyrhills), would have assigned liability in auto accidents where it should be – on the driver who caused the accident.