The Florida Legislature passed a bill that will cause insurance rates to rise for Florida motorists, particularly those who buy the minimum required insurance, according to the Personal Insurance Federation of Florida (PIFF).

Senate Bill 54, an act relating to motor vehicle insurance, now heads to Governor Ron DeSantis.

PIFF is urging Governor DeSantis to veto the measure, which repeals Florida’s Motor Vehicle No-Fault Law and its Personal Injury Protection (PIP) insurance requirement, replacing it with mandatory bodily injury coverage, a mandatory death benefit and an “opt-out” medical payments coverage modeled on PIP.

“We are extremely concerned that this bill would substantially increase rates for our customers and Florida residents who can least afford an increase, while forcing hundreds of thousands of Floridians already struggling to pay current premiums to drive without insurance,” said Michael Carlson, president and CEO of PIFF.

A 2021 industry study estimates that over 20 percent of drivers in Florida, or one in five vehicles on the road, is currently uninsured. This is caused in-part by a lack of affordability; Florida has the fourth-highest average premium of any state due to the well-known PIP fraud and litigation abuse.

“If this legislation becomes law, Florida runs a risk of becoming the state with the highest average insurance rates and the largest uninsured motorist population,” Carlson added.

Data points to significant rate increases for millions of drivers who buy low limits: the Office of Insurance Regulation stated that rates will increase if Florida moves to the proposed mandatory bodily injury system.

The Personal Insurance Federation of Florida believes that any repeal of PIP must consider ways to alleviate potential rate increases. PIFF is a member of the Consumer Protection Coalition, a group advocating for sound public policy that puts consumers first.