New Florida bill could lead to 50% auto insurance rate increases

New Florida bill could lead to 50% auto insurance rate increases

A new bill in Florida could spell auto insurance rate increases by as much as 50% if signed by Governor Ron DeSantis.

If passed into law, the bill – which aims to introduce reforms to the Florida Motor Vehicle No-Fault Laws – would make drivers who carry the bare minimum of $10,000 for personal injury protection insurance pay about $300 a year.

John Gardner, owner of Lee County Insurance Agency, told local news outlet NBC-2 (WBBH-TV) that about 26% of drivers on the road carry the minimum limits of bodily injury coverage. He also pointed out that those drivers who carry $25,000 in injury coverage may not even see any changes to their rates.

But the agency owner shared his concerns that the increase in rates could lead to more fraud.

“There is a potential that $25k is going to be pegged for pain and suffering when there may or may not be significant injury,” Gardner said.

A report by independent actuarial and management consulting firm Pinnacle Actuarial Resources for the Florida Office of Insurance Regulation, said that repealing the state’s no-fault insurance system would result in an overall increase in premiums of 13.3% for all coverages combined – about $202 per car annually for the average vehicle.