STORAGE NAME: h1181b.IBS
DATE: 4/1/2025
1
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 1181
TITLE: Motor Vehicle Insurance
SPONSOR(S): Alvarez, D., Weinberger
COMPANION BILL: SB 1256 (Grall)
LINKED BILLS: None
RELATED BILLS: None
Committee References
Civil Justice & Claims
13 Y, 2 N
Insurance & Banking
Judiciary
SUMMARY
Effect of the Bill:
HB 1181 repeals the personal injury protection (“PIP”) coverage requirement under Florida’s Motor Vehicle No-
Fault Law and increases the minimum bodily injury liability coverage limits from $10,000 per person and $20,000
per incident to $25,000 per person and $50,000 per incident; however, the minimum property damage liability
coverage limit remains unchanged at $10,000. The bill also increases the minimum security amounts for persons
choosing self-insurance to meet the financial responsibility requirements.
Fiscal or Economic Impact:
The bill may have a fiscal impact on the state court system and the Office of Insurance Regulation (“OIR”); however,
the bill makes an appropriation of $83,651 in non-recurring funds from the Insurance Regulatory Trust Fund to
OIR to address changes made by the bill. The bill may also have an indeterminate economic impact on the private
sector. Whether such impact is positive or negative depends on whether the changes made by the bill increase or
decrease motor vehicle insurance premiums, and whether or not the elimination of PIP coverage results in the
timely and sufficient reimbursement of the medical expenses incurred by persons injured in automobile accidents.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
Personal Injury Protection Coverage Repeal
The bill repeals Florida’s Motor Vehicle No-Fault Law, effectively eliminating the personal injury protection (“PIP”)
coverage requirement in Florida. Under the bill, such coverage would not even be optional in the state, as insurers
would be prohibited from offering the product as part of any motor vehicle insurance policy. (Sections 1, 2, and
46).
Further, by repealing PIP, the bill eliminates PIP’s tort liability limitation. Thus, under the bill, if a driver were to
cause a motor vehicle accident, he or she would be fully liable for any damages resulting therefrom; to put it
another way, a person injured in a motor vehicle accident caused by another would no longer be required to seek
recovery from his or her own insurer and could instead sue the at-fault driver for any damages he or she sustained,
regardless of the seriousness of the injury he or she suffered. Consistent with this change, the bill removes the
conditional exclusion of non-economic damages for pain, suffering, mental anguish, and inconvenience and allows
punitive damages awards; beginning July 1, 2026; the bill also makes uninsured motorist coverage insurers liable
for non-economic damages, including pain and suffering, disability or physical impairment, disfigurement, mental
anguish, inconvenience, and the loss of capacity for the enjoyment of life experienced in the past and to be
experienced in the future. (Section 44) However, the bill leaves in place the ability of a Florida driver to purchase
optional medical payments coverage, which could take the place of PIP in the event the insured is unable to recover
under another driver’s liability policy. (Section 47)
Financial Responsibility Requirements JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
In conjunction with the bill’s repeal of the PIP coverage requirement, the bill modifies the coverage requirements
under the Financial Responsibility Law for persons owning or registering motor vehicles in Florida. Specifically,
the bill provides that, beginning July 1, 2026, proof of compliance with the Financial Responsibility Law as to
bodily injury (“BI”) liability coverage is required at the time of motor vehicle registration,
1 instead of post-
registration or at the time of an accident as is currently required.
2 (Sections 6, 12, and 15) The bill also increases
the minimum BI liability coverage limits from $10,000 per person and $20,000 per incident to $25,000 per person
and $50,000 per incident, but the minimum property damage (“PD”) liability coverage limit remains unchanged at
$10,000.
3 This results in required 25/50/10 coverage in most instances. (Section 14)
Additionally, the bill increases the minimum security amounts for self-insurance in order to satisfy the financial
responsibility requirements. Specifically, the bill increases certificate of security deposit requirements for
individuals and businesses
4 from $30,000 per vehicle (up to a maximum of $120,000) to $60,000 per vehicle (up to
a maximum of $240,000). (Sections 18 and 24) Additionally, self-insured persons and businesses must maintain a
motor vehicle liability policy in excess of the certificate of security deposit providing bodily injury coverage of
$125,000 per person, $250,000, per accident, and $50,000 for property damage, or $300,000 combined property
damage and bodily injury coverage. (Section 18) The bill then increases certificate of self-insurance minimum
unencumbered net worth requirements from:
$40,000 to $100,000 for individuals; and
$40,000 for the first vehicle and $20,000 for each additional vehicle to $100,000 and $50,000, respectively,
for businesses.
5 (Section 25)
Further, the bill:
Increases minimum security limits for garage liability insurance from a $25,000 combined single limit for
BI and PD to a $60,000 combined limit. (Section 8 and 9)
Leaves for-hire passenger transportation vehicles at the current 125/250/50 coverage minimums. (Section
19)
Requires shared vehicle owners and shared vehicles drivers participating in a peer-to-peer car sharing
program to have insurance policies that meet or exceed the required 25/50/10 coverage. (Section 52)
As to commercial vehicles:
o Increases minimum combined BI/PD coverage limits for commercial vehicles between 26,000
pounds and 35,000 pounds from $50,000 per occurrence to $60,000 per occurrence;
o Increases minimum combined BI/PD coverage limits for commercial vehicles 35,000 pounds or
more but less than 44,000 pounds from $100,000 per occurrence to $120,000 per occurrence; and
o Leaves minimum combined BI/PD coverage limits for commercial vehicles 44,000 pounds or more
at $300,000 per occurrence. (Section 49)
Leaves the required primary liability coverage minimum for autonomous vehicles at $1,000,000 for death,
bodily injury, and property damage. (Section 53)
Leaves minimum coverage limits for non-public-sector buses at the current 100/300/50 or combined 300
amounts. (Section 13)
1 Proof of compliance with the Financial Responsibility Law at the time of registration does not change for motorcycles. However, within 30
days after receipt of a specified notice of accident involving a motorcycle within this state, under the bill, the DHSMV must suspend the
motorcycle operator’s license and all registrations of the motorcycle’s owner unless such operator or owner is found to be exempt from such
requirement or otherwise had in effect at the time of the crash a motor vehicle liability policy with respect to all of the registered
motorcycles owned by such operator or owner. For the purposes of the suspension provision, the term “motor vehicle” includes motorcycles.
(Section 20)
2 The bill also provides that a driver license or motor vehicle registration suspension for failure to maintain security under the Financial
Responsibility Law in effect before July 1, 2026, remains in full force and effect after July 1, 2026. Under the bill, a driver may reinstate such a
suspended driver license or registration after July 1, 2026, by showing proof of compliance with the amended Financial Responsibility Law
and paying a fee. (Sections 16 and 21)
3 The bill also increases the combined coverage limit minimum of $30,000 for property damage and bodily injury liability coverage to
$60,000. (Section 8)
4 The bill requires that proof of the certificate of deposit maintained in a financial institution insured by the Federal Deposit Insurance
Corporation or the National Credit Union Administration be submitted annually to the DHSMV. (Section 24)
5 In the alternative, businesses may still qualify for self-insurance by maintaining a sufficient net worth in an amount determined annually by
the DHSMV. (Section 25) JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Leaves minimum transportation network company coverage limits at 50/100/25 when logged on to the
network but not engaged with a rider and $1 million when engaged in a prearranged ride. (Section 51)
Coverage Transition
The bill provides for the transition of motor vehicle insurance policies from PIP coverage to BI/PD coverage if the
policies were issued before July 1, 2026, but still in force on that date and prohibits policies issued on or after July
1, 2026, from including PIP coverage. Under the bill, policies that were issued in compliance with the law in place
at the time of issuance are deemed to meet the new requirements until renewed, non-renewed, or canceled.
Insurers must also allow policyholders with PIP coverage to obtain BI coverage that complies with the changes
made by the bill without charge other than any payments for increased premium due, and refunds for decreased
premiums are also required. (Section 46)
Notice Requirements
The bill requires insurers to give notice, by April 1, 2026, informing motor vehicle insurance policyholders that,
effective July 1, 2026:
PIP is repealed.
The insured is no longer required to carry PIP coverage.
PIP is no longer available for purchase.
New or renewal coverage will not include PIP.
New BI requirements begin, with minimum coverage limits of 25/50/10.
An insured may obtain uninsured/underinsured motorist coverage to protect themselves from damages
caused by an uninsured/underinsured driver.
Policies that comply with the requirements of law at the time of issue are deemed to meet the new
requirements, until the policy is renewed, non-renewed, or canceled.
Insureds may change their policies to comply with the new requirements.
Insureds may contact the person specified in the notice at the telephone number provided with any
questions.
The notice is subject to OIR’s approval. (Section 46)
Rate Filings
The bill provides that insurer rate filings for motor vehicle liability submitted to OIR on or after July 1, 2026, must
be based on the new BI/PD coverage requirements and may only be approved through the file and use approval
process.
6 (Section 38)
Information Disclosure by Insurer
The bill authorizes the filing of an enforcement action if an insurer fails to comply with the information disclosure
requirements of s. 627.4137, F.S. In pertinent part, that section requires an insurer providing liability insurance
coverage to provide, within 30 days after the written request of a claimant or the claimant’s attorney, a statement,
under oath, setting forth the following information:
The name of the insurer;
The name of each insured;
The limits of the liability coverage;
A statement of any policy or coverage defense which the insurer reasonably believes it has available; and
A copy of the policy.
Under the bill, if a court determines that an insurer violated such information disclosure requirements, a claimant
is entitled to an award of reasonable attorney fees and costs to be paid by the insurer. (Section 42)
6 In the file and use approval process, an insurer must file its proposed rates with OIR and have them approved before the rates may be
implemented. In contrast, under the use and file method, an insurer may implement new rates before getting OIR’s approval. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
Appropriation
The bill appropriates the sum of $83,651 in nonrecurring funds from the Insurance Regulatory Trust Fund to OIR
to implement changes made by the bill. (Section 60)
Miscellaneous Provisions
The bill:
Makes conforming changes to numerous sections of law.
Provides an effective date of July 1, 2026, except as otherwise provided. (Section 61)
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The bill may have a fiscal impact on the state court system to the extent that it increases the number of tort
lawsuits filed. The bill may also have a fiscal impact on the Office of Insurance Regulation (“OIR”); however, the bill
makes an appropriation of $83,651 in non-recurring funds from the Insurance Regulatory Trust Fund to OIR to
address changes made by the bill.
PRIVATE SECTOR:
The bill may have an indeterminate economic impact on the private sector. Whether such impact is positive or
negative depends on whether the changes made by the bill increase or decrease motor vehicle insurance
premiums, and whether or not the elimination of PIP coverage results in the timely and sufficient reimbursement
of the medical expenses incurred by persons injured in automobile accidents.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
General Tort Law
The main purpose of Florida’s civil justice system is to properly and fairly redress the civil wrongs committed
throughout the state. A functioning civil justice system, when it operates justly:
Provides a fair and equitable forum to resolve disputes;
Discourages persons from resorting to self-help methods to redress wrongs;
Appropriately compensates legitimately harmed persons;
Shifts losses to responsible parties;
Provides incentives to prevent future harm; and
Deters undesirable behavior.
7
A goal of the civil justice system is to redress tortious conduct, or “torts” – that is, wrongs for which the law
provides a remedy. Torts are generally divided into three categories, as follows:
An intentional tort, examples of which include assault, battery, or false imprisonment.
8
Recklessness, which is behavior so careless that it is considered an extreme departure from the care a
reasonable person would exercise in similar circumstances.
9
Negligence, which is the failure to behave with the level of care that an ordinary prudent person would
have exercised under the same circumstances.
10 To prevail in a negligence lawsuit, the plaintiff must show
that the:
o Defendant had a legal duty of care requiring the defendant to conform to a certain standard of
conduct for the protection of others, including the plaintiff, against unreasonable risks;
o Defendant breached his or her duty of care by failing to conform to the required standard;
7 Cf. Am. Jur. 2d Torts s. 2.
8 Legal Information Institute, Intentional Tort, https://www.law.cornell.edu/wex/intentional_tort (last visited Mar. 27, 2025).
9 Legal Information Institute, Reckless, https://www.law.cornell.edu/wex/reckless (last visited Mar. 27, 2025).
10 Legal Information Institute, Negligence, https://www.law.cornell.edu/wex/negligence (last visited Mar. 27, 2025). JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
o Defendant’s breach caused the plaintiff to suffer an injury; and
o Plaintiff suffered actual damage or loss resulting from such injury.
11
Financial Responsibility Law
All states have financial responsibility laws requiring persons involved in motor vehicle accidents, or who commit
serious traffic violation, to furnish proof of bodily injury (“BI”) and property damage (“PD”) liability insurance at
the time of the accident or violation. Such insurance generally covers damages to the person or property of another
resulting from a motor vehicle accident caused by the insured, and limits the insured’s personal liability should he
or she be sued in connection with the accident to amounts exceeding the policy limits; however, required minimum
coverage amounts vary among the states.
12
Florida’s Financial Responsibility Law generally requires proof of ability to pay monetary damages for BI and PD
liability arising out of a motor vehicle accident or serious traffic violation.
13 Under Florida law, the owner or
operator of a motor vehicle must show proof of PD liability coverage at the time he or she registers the vehicle in
Florida.
14 However, such person is generally not required to show proof of BI liability coverage at the time of
vehicle registration; instead, proof of such coverage is typically only required after an accident.
15 At that time, a
driver proves financial responsibility by furnishing an active motor vehicle liability insurance policy meeting the
minimum coverage requirements, a certificate showing a qualifying security deposit made with the Department of
Highway Safety and Motor Vehicles (“DHSMV”), or proof of qualifying self-insurance.
16 Where a driver does not
comply with the Financial Responsibility Law, his or her driver’s license and vehicle registration may be
suspended.
17
Specifically, under the Financial Responsibility Law, a motor vehicle owner or operator must hold minimum:
BI liability coverage of at least $10,000 in the event of the bodily injury to or death of one person and
$20,000 in the event of the bodily injury to or death of two or more persons; and
PD liability coverage of at least $10,000, in the event of damage to property of others; or
$30,000 in combined BI and PD liability coverage.
18
These coverage amounts are often referred to in a summary manner as $10,000/$20,000/$10,000 or
10/20/10.
Further, businesses that choose to self-insure must make a security deposit of $30,000 per vehicle, up to a
maximum of $120,000, with the DHSMV and maintain excess insurance with limits of
$125,000/$250,000/$300,000. Individuals that choose to self-insure must deposit $30,000 with the DHSMV.
Individuals and businesses can also obtain a certificate of self-insurance to satisfy the financial responsibility
requirements; however, individuals choosing this option must have an unencumbered net worth of $40,000, while
businesses choosing this option must have either an unencumbered net worth of $40,000 for the first vehicle and
$20,000 for each additional vehicle or a sufficient net worth as determined by DHSMV rule.
19
11 6 Florida Practice Series s. 1.1; see Barnett v. Dept. of Fin. Serv., 303 So. 3d 508 (Fla. 2020).
12 Florida Department of Financial Services, Personal Automobile insurance Overview,
https://www.myfloridacfo.com/division/consumers/understanding-insurance/personal-automobile-insurance-overview (last visited Mar.
27, 2025).
13 “Motor vehicle” generally means every self-propelled vehicle that is designed and required to be licensed for use on the highway, but the
term does not include electric bicycles, mopeds, or farm tractors.
Ch. 324, F.S.
14 S. 320.02, F.S.
15 Exceptions apply where the person registering the motor vehicle has been found guilty of or entered a plea of guilty or no contest to a
charge of driving under the influence under s. 316.193, F.S. In such a case, the person registering the vehicle must show that he or she has
minimum BI liability coverage of $100,000 for the death of or injury to one person arising from a motor vehicle accident and $300,000 for
the death of or injury to any two or more persons arising from a motor vehicle accident. Ss. 320.02, 324.011, and 324.021, F.S.
16 Ss. 324.031, 324.061, 324.161, and 324.171, F.S.
17 S. 324.0221(2), F.S.
18 S. 324.022, F.S.
19 Currently, the applicable rule provides that $40,000 for the first vehicle and an amount less than $20,000 for each additional vehicle is
sufficient if the applicant carries excess insurance in the amounts of $25,000/$50,000/$100,000. The amount applicable to each additional
vehicle is set annually under a rule adopted by OIR. Rule 15A-3.011, F.A.C. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
Personal Injury Protection Coverage
According to a recent survey, 14 states (including Florida) and Puerto Rico require motorists to carry, in addition
to BI and PD liability coverage, no-fault insurance known as personal injury protection (“PIP”) coverage; five states
and the District of Columbia make PIP coverage optional.
20 Where it is available, PIP provides to the covered
person immediate medical, surgical, funeral, and disability insurance benefits up to the coverage limits after a
motor vehicle accident, regardless of who caused the accident.
21
Florida’s Motor Vehicle No-Fault Law (“No-Fault Law”) requires all owners or registrants of motor vehicles with
four or more wheels, except school buses, limos, and taxicabs, to carry PIP insurance, which covers up to $10,000
in emergency medical and disability benefits (limited to $2,500 in medical benefits for non-emergency medical
conditions) and $5,000 in death benefits, along with 60 percent of income lost due to disability and replacement
services for household task the injured person would have handled but is now unable to perform (not to exceed
the $10,000 overall benefit limit).
22 Where medical benefits are awarded, PIP covers 80 percent of reasonable
medical expenses paid to eligible medical providers; however, medical benefits are paid only if initial treatment is
received within 14 days of the accident, and massages and acupuncture are not covered.
23
PIP coverage extends to the named insured, relatives of the named insured living in the same household, persons
operating the vehicle, and passengers in the vehicle, and it also protects a covered person struck and injured
outside a vehicle.
24 In return for providing such benefits, the No-Fault Law limits the tort liability of an at-fault
driver in connection to a motor vehicle accident; instead, each person involved in the accident generally must seek
reimbursement of their medical expenses and related damages under their own PIP insurance, unless an exception
applies.
25 Further, the No-Fault Law provides a conditional exclusion prohibiting recovery under a PIP policy for
certain non-economic damages,
26 including pain and suffering, mental anguish, and inconvenience, and prohibits
the award of punitive damages.
27
Critics of the No-Fault Law argue that the $10,000 PIP coverage limit, unchanged since the 1970s, is insufficient to
cover current medical costs. Further, one recent study notes that Florida currently has the highest average annual
cost for minimum motor vehicle insurance coverage, with an average premium of $1529 per vehicle per year; the
states with the next four highest averages (that is, New Jersey, Michigan, New York, and Delaware) also have
mandatory PIP coverage requirements.
28
Recent Legislative Reforms
After a statewide grand jury found evidence of rampant PIP fraud in Florida’s insurance market, the Florida
Legislature began a years-long effort to reform PIP insurance.
29 Initially, in 2003, the Legislature provided for PIP
20 According to the survey, PIP is required in Delaware, Florida, Hawaii, Kansas, Kentucy, Massachusetts, Michigan, Minnesota, New Jersey,
New York, North Dakota, Oregon, Pennsylvania, Utah, and Puerto Rico; PIP is option in Arkansas, Connecticut, Maryland, Texas, Washington
State, and Washington, D.C. Penny Gusner, What Is Personal Injury Protection (PIP) And Do You Need It?,
https://www.forbes.com/advisor/car-insurance/pip-guide/ (last visited Mar. 27, 2025).
21 Id.
22 S. 627.7275, F.S.
23 Insurers may limit reimbursements to a fee schedule tied to the Medicare allowed amount. For many services, 80 percent of 200 percent
of the Medicare allowed amount is the standard reimbursement. S. 627.736(5)(a)1., F.S.
24 This includes non-resident owners who keep a vehicle in Florida for more than 90 days out of the previous 365 days. S. 627.733(2), F.S.
25 An injured person may still sue the at-fault driver if the injured person suffers significant and permanent loss of an important bodily
function; permanent injury within a reasonable degree of medical probability; significant and permanent scarring or disfigurement; or
death. Even in such suits, the injured party has no right to recover any damages for which PIP benefits are paid, or payable.
26 “Non-economic damages” are intangible harms, for which a dollar value is not readily attributable. Justia, Non-Economic Damages in
Personal Injury Lawsuits, https://www.justia.com/injury/negligence-theory/non-economic-damages/ (last visited Mar. 27, 2025).
27 “Punitive damages” are damages designed to punish a wrongdoer. Such damages are usually only awarded where the plaintiff can show
that the defendant’s misconduct was willful or wanton. Legal Information Institute, Punitive Damages,
https://www.law.cornell.edu/wex/punitive_damages (last visited Mar. 27, 2025).
28 Gusner, supra note 13.
29 The grand jury found evidence that such fraud included: 1) illegal solicitation of accident victims for the purpose of filing for PIP benefits
and motor vehicle tort claims; (2) brokering patients between doctors, lawyers, and diagnostic facilities; (3) billing insurance companies for JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
7
repeal through a sunset provision effective October 1, 2007; after the Governor vetoed a subsequent bill extending
PIP’s sunset period, PIP expired in 2007.
30 However, the Legislature then revived PIP, effective January 1, 2008, in a
2007 Special Session,
31 and subsequently revised the PIP law over several years.
32 Revisions to PIP in these years
included:
Establishing requirements for and limiting access to motor vehicle crash reports;
Limiting medical services, reimbursement, and eligible providers;
Requiring provider licensing;
Requiring pre-suit demand letters;
Increasing criminal penalties;
Defining certain activities by claims handlers as unfair and deceptive trade practices;
Limiting benefits for emergency and non-emergency medical conditions;
Clarifying the application of the PIP medical reimbursement fee schedule;
Allowing for the reimbursement of certain healthcare clinics for PIP-related medical services;
Requiring rate filings with reduced PIP premiums; and
Limiting attorney fees.
33
Bills to once again repeal PIP have come before the Legislature for consideration in recent years, and in 2021, the
Legislature passed CS/CS/SB 54, which, in pertinent part, repealed the PIP coverage requirement and raised the
minimum coverage limits for motor vehicle owners and operators under the Financial Responsibility Law.
Specifically, the bill increased the minimum BI coverage limits from $10,000 per person and $20,000 per incident
to $25,000 per person and $50,000 per incident, but the minimum PD coverage limit remained unchanged at
$10,000.
34 The bill also required insurers to offer medical payments coverage at limits of $5,000 and $10,000 with
no deductible, and authorized an insurer to offer medical payments coverage at limits greater than $5,000 and with
a deductible of up to $500; medical payments coverage in any amount also had to include an additional death
benefit of at least $5,000. Under the bill, a motor vehicle insurance policy was deemed to have $10,000 in med pay
coverage unless the insurer obtained the insured’s written refusal of medical payments coverage or a written
selection of medical payments coverage at a limit other than $10,000.
In conjunction with the passage of 2021 CS/CS/SB 54, OIR contracted with Pinnacle Actuarial Resources
(“Pinnacle”) to determine the impact such a repeal would have on motor vehicle insurance premiums in Florida.
35
Released on June 14, 2021, the Pinnacle report estimated that, if PIP was repealed in Florida, motor vehicle
insurance premiums would see a 13.3 percent increase for all coverages combined, or $202 per vehicle annually
for the average driver; however, this estimate assumed that PIP would be replaced by opt-out medical payments
coverage with a default limit of $10,000.
36 The report then went on to estimate that drivers rejecting medical
payments coverage would see an increase of 1.5 percent, or $23 per vehicle annually on the premium for all
coverages combined, while drivers electing to buy medical payments coverage with a $5,000 limit would see an 8.6
percent increase for the coverage premium, or approximately $131 per vehicle.
37 The Governor ultimately vetoed
the bill, finding that “while the PIP system has flaws…[the bill] does not adequately address current issues facing
Florida drivers and may have unintended consequences that would negatively impact both the market and
treatment not rendered; (4) using phony diagnostic tests or misusing legitimate tests; (5) inflating charges for diagnostic tests or procedures
through brokers; and (6) filing fraudulent motor vehicle tort lawsuits. Fifteenth Statewide Grand Jury, Report on Insurance Fraud Related
To Personal Injury Protection, https://www.yourstpetelawyers.com/2000-statewide-grand-jury-report-on-pip-insurance-fraud-worth-
reading/ (last visited Mar. 27, 2025); Florida Supreme Court, Case Docket: Case No. SC 695746,
https://onlinedocketssc.flcourts.org/DocketResults/LTCases?CaseNumber=95746&CaseYear=1960 (last visited Mar. 27, 2025).
30 Ch. 2003-411, L.O.F.
31 Ch. 2007-324, L.O.F.
32 Ch. 2012-197, L.O.F.; ch. 2015-135, L.O.F.
33 Attorney fees in PIP disputes between an insured and an insurer were ultimately eliminated as part of a larger tort reform effort in 2023.
Ch. 2023-15, L.O.F.
34 The bill also included insurer “bad faith” reforms, a mandatory $5,000 death benefit, and a $10,000 setoff on damages where the injured
party lacked the required motor vehicle insurance. The Legislature ultimately adopted broader insurer “bad faith” reforms as part of a larger
tort reform effort in 2023. Ch. 2023-15, L.O.F.
35 Pinnacle Actuarial Resources, The Impact of Repealing Personal Injury Protection Coverage in Florida, https://fcep.org/wp-
content/uploads/2022/02/FloridaOIRPIPRepealImpactFinalReport06142021.pdf (last visited Mar. 27, 2025).
36 Id.
37 Id. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
8
consumers.”
38 However, the instant bill does not include mandatory or opt-out medical payments coverage
provisions as 2021 CS/CS/SB 54 did, and OIR has not commissioned a study on what impact, if any, passage of this
bill would have on motor vehicle insurance premiums in Florida.
Medical Payments Coverage
Florida drivers have the option to purchase medical payments coverage, in addition to their PIP coverage, to cover
medical expenses (beyond those covered by PIP) resulting from injuries sustained in a motor vehicle accident.
39
Like PIP, medical payments insurance differs from BI coverage in that it covers the medical expenses of the
insured, members of the insured’s family, and the insured’s passengers regardless of who caused the accident, and
it is available whether the covered person’s injury occurs while the covered person is in the insured’s car, in
someone else’s car, or a pedestrian.
40 However, medical payments coverage is typically secondary to coverage
under any applicable health insurance policy; whether or not this is the case depends on the health insurance
policy’s terms.
41
Uninsured Motorist Coverage
Florida drivers have the option to purchase uninsured motorist coverage to cover injuries and damages which they
sustain in a motor vehicle accident caused by an uninsured, or underinsured, driver; such coverage can be
important as, according to a recent study, 15.9 percent of Florida drivers lacked sufficient motor vehicle liability
insurance coverage.
42 Given the risks posed by uninsured drivers, a standard motor vehicle liability insurance
policy issued in Florida comes with uninsured motorist coverage; to decline such coverage, the insured must opt
out of accepting it in writing.
43 Further, an uninsured motorist coverage insurer’s legal liability does not include
non-economic damages for pain, suffering, disability or physical impairment, disfigurement, mental anguish,
inconvenience, or the loss of capacity for the enjoyment of life experienced in the past and to be experienced in the
future.
44
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2021 CS/CS/SB 54 Grall Burgess Vetoed by the Governor.
38 Veto Letter of Ron DeSantis, Governor, (June 29, 2021) https://www.flgov.com/eog/sites/default/files/press/SB-54-Transmittal-
Letter.pdf (last visited Mar. 27, 2025).
39 The Florida Bar, Consumer Pamphlet: Automobile Insurance, https://www.floridabar.org/public/consumer/tip002/#Untitled%20Section
(last visited Mar. 27, 2025).
40 Id.
41 Investopedia, Medical Payments Coverage (MedPay): Overview and Examples, https://www.investopedia.com/terms/m/medical-
payments-coverage.asp (last visited Mar. 27, 2025).
42 S. 627.727, F.S.; Insurance Information Institute, Facts + Statistics: Uninsured Motorists, https://www.iii.org/fact-statistic/facts-statistics-
uninsured-motorists (last visited Mar. 27, 2025).
43 S. 627.727, F.S.
44 Id. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
9
BILL HISTORY
COMMITTEE REFERENCE ACTION DATE
STAFF
DIRECTOR/
POLICY CHIEF
ANALYSIS
PREPARED BY
Civil Justice & Claims
Subcommittee
13 Y, 2 N 3/27/2025 Jones Mawn
Insurance & Banking
Subcommittee
Hamon Herrera
Judiciary Committee