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Major changes in the works for auto insurance in Florida

Supporters: Increase Coverage, Decrease Costs
Posted: 7:19 PM, Mar 28, 2017
Updated: 2017-03-29 13:10:43Z

House Bill 1063 could spell major changes for Auto Insurance in Florida.

Right now , you only have to buy $10 thousand dollars worth of coverage. Under this bill,  you would be required to buy $25 thousand dollars worth of coverage. More than twice the amount.

Supporters say in the long run, this will save you money, but critics say this math just doesn't add up.

These days the insurance industry is much like the mangled metal and flashing lights at the accident scenes: a mess in need of fixing. 

Lawmakers in Tallahassee are trying to change that perception with House Bill 1063 that's now moving through the state legislature.

It would replace Florida's long standing "no-fault" insurance system with a  new fault-based structure that requires all drivers to get  bodily injury coverage of $25 thousand dollars per person.

Currently, Florida drivers are only required to carry personal injury protection of at least $10 thousand dollars to pay for medical benefits after an accident.  But the people pushing for change, say $10 thousand dollars just doesn't cut it these days in the world of rising health care costs.

Supporters say the changes will save Florida drivers $80 a year, but critics say that's not true because insurance rates have been going up the last several years because of a rise in medical care cost and more cars out on the road.

More cars means more collisions.

And the insurance industry and doctor groups are wary of any changes to how they get paid. They fear doing away with Florida "no fault," which has been around since 1971, would bog Florida down into a legal swamp where every wreck becomes a court battle.

And there's also the question of Insurance Fraud.

The insurance industry says any change to auto insurance should include protections against false claims.

Here's the number they are concerned about: $813 million dollars. They says that's how much "fake lawsuits" are costing "honest" Florida drivers every year.