Each driver within the state ought to thank Gov. Ron DeSantis for saving them from new and extra pricey vehicle insurance coverage insurance policies.
The Governor is a longtime champion for insurance coverage reform, as mirrored in various measures he has signed or rejected to learn tens of millions of Floridians and promote the long-term sustainability of the state’s insurance coverage market.
Earlier this yr, Florida lawmakers handed Senate Invoice 54 with little debate. However the invoice shortly drew heavy criticism for in search of to switch auto insurance coverage private harm safety (PIP) protection with bodily harm protection limits, probably resulting in increased charges and rising the variety of uninsured drivers.
The invoice would have raised medical health insurance prices as properly.
Lawmakers mentioned the invoice would have the precise reverse impact, finally decreasing premiums for many drivers. However this was actually simply an assumption, not primarily based on any arduous knowledge or detailed evaluation. In actual fact, this was a part of the rationale the Governor vetoed the laws — in his veto message, he famous that the invoice “doesn’t adequately tackle the present points going through Florida drivers and will have unintended penalties that may negatively affect each the market and shoppers.”
Florida already requires drivers to hold $10,000 in PIP protection, which covers medical and funeral prices no matter who was at fault in an accident. Florida is one in every of solely two states that doesn’t require bodily insurance coverage protection.
SB 54 would have introduced one of many largest shake-ups of the state’s auto insurance coverage legal guidelines up to now 50 years, forcing each motorist to hold at the least $25,000 in bodily harm protection and requiring insurers to supply as much as $10,000 in medical funds protection.
It’s estimated this may have led a whole bunch of 1000’s of Floridians to drop their protection as a result of they wouldn’t have been in a position to afford increased premiums. Such a rise in uninsured motorists would have spiked prices for each different driver on the street, who would have been caught with the monetary burden of carrying the uninsured after they had an accident.
This veto reinforces DeSantis’ dedication to performing in the most effective curiosity of all Floridians – particularly when paired along with his approval of project of advantages adjustments in Senate Invoice 76, which was designed to present aid to Florida’s property insurance coverage sector by prohibiting contractors from soliciting householders to file roofing claims, in addition to offsetting the rise of property insurance coverage premiums.
SB 54 didn’t entice a lot high-profile opposition earlier than it was handed, however afterward, it was criticized by everybody from insurance coverage and medical teams to enterprise teams like Related Industries of Florida.
“Gov. DeSantis’ robust dedication to the state’s insurance coverage reform efforts is constant to cut back the burden of property and vehicle insurance coverage for all Floridians,” mentioned Brewster Bevis, AIF’s senior vp of State and Federal Affairs. “His continued efforts won’t solely promote inexpensive insurance coverage insurance policies but in addition stabilize and positively affect the state’s insurance coverage market as a complete.”
Lawmakers have been making an attempt to kill PIP for years and thought that they had lastly succeeded this time.
The Governor’s veto exhibits that he’ll proceed to place insurance coverage reform beneath a microscope and received’t settle for one thing that doesn’t mirror the form of reforms he needs to see.