A report from the Property Casualty Insurers Association of America found that the Florida legislature’s auto insurance mandate repeal bill could cost consumers as much as $340 per year.
The bill, which includes no changes to the insurance bad faith statutes, would incentivize drivers to go uninsured or underinsured. Under the bill, motorists who buy full coverage would end up paying an extra $150 per year for insurance. Drivers who buy only the mandatory coverage would pay an extra $340.
The bill passed the state’s House of Representatives on January 12 by a vote of 88-19. The Senate’s version of the bill is currently awaiting action on the floor.
The report did say that the heightened costs could be reduced with changes to the bill. Among these changes are reforms to the bad faith system. Any changes to the state’s insurance system must include new time limits and communication requirements that can help stop bad-faith claims. These claims drive up the costs of insurance on both businesses and consumers.
Bad faith reform must be a key part of any insurance related action. Without it, Florida drivers will pay more for less insurance coverage.
The Senate should immediately take up legislation that would introduce changes to stop bad faith insurance claims.