Understanding the Shift in Auto Insurance in Florida

Florida has consistently been known for having some of the highest auto insurance rates in the U.S. In some states, elevated car insurance rates have been attributed to the high cost of living, excessive theft, or even wildlife collisions. In Florida, the high rates have been blamed on insurance fraud and litigation, as well as hurricane risks and an unusually high percentage of uninsured drivers.

Lawmakers have been trying to change auto insurance requirements and other laws to lower rates. Recently, the government announced that initiatives have proven successful, but other proposed changes could drastically reshape the insurance landscape. With all the hype and lobbying, it can be challenging to understand what the current requirements are and how they might change in the near future.

At Ver Ploeg and Marino, we have focused our legal practice on the insurance industry for decades, so we follow changes and proposed amendments very closely. If you have questions about an insurance dispute, contact us directly, and we’d be happy to discuss the specific rules that apply to your case, which is something we cannot do in a generalized blog like this. Here we provide an overview of requirements, how things have changed, and what could be coming in the future.

The Impact of Tort Reform

Tort reform legislation in Florida made significant changes to the process of recovering compensation for car accidents. Personal injury attorneys decried the changes, but reform advocates insisted the amendments were necessary to prevent fraud and reduce out-of-control litigation costs. Among the reforms enacted were:

• A change from a pure comparative negligence standard to a modified comparative negligence system. The former standard allowed an accident victim to seek partial compensation from others involved in the accident, even if the victim was primarily responsible for causing it. Under the modified standard, accident victims are permitted to obtain compensation only if they are no more than 50% responsible for causation.
• A reduction in the time allowed for filing a claim for compensation after an accident. The statute of limitations used to allow four years to file a lawsuit, but now claims must be filed within two years.
• Limits on amounts that can be requested for past and future medical damages. The amounts must be based on what was actually paid for treatment, not on what was billed.
• Limits on when an insurance company can be sued for acting in bad faith on a claim for damages

The laws took effect approximately three years ago, and the insurance rates are finally starting to decline. Rates increased by an average of over 4% in 2024 and then began to decline in 2025. Florida Insurance Commissioner Mike Yaworsky proudly announced in March of 2026 that average car insurance rates for the five biggest auto insurance groups decreased by 8%. “The historic legislative reforms,” he explained, “continue to drive auto insurance rates down.” He concluded by saying that “we anticipate this trend to continue for the auto market.”

However, some proposed changes in car insurance requirements could potentially do just the opposite.

Proposal to Repeal Florida’s Personal Injury Protection Requirement

For over 50 years, Florida has operated what is often referred to as a “no-fault” auto insurance system. Most states in the U.S. operate on a fault-based system. When a collision occurs in these states, liability for medical bills and other losses is legally imposed on the person deemed responsible for causing the collision. Vehicle owners are required to carry liability insurance to cover the losses of others if the owner’s vehicle causes a crash.

The Current System in Florida

In Florida and a handful of other states, drivers must carry personal injury protection (PIP) insurance that pays for a certain amount of the driver’s medical expenses from a collision, regardless of who caused the accident. Minimum insurance coverage requirements in Florida are $10,000 for the driver’s injuries and $10,000 in property damage liability. This is referred to as “no-fault” because the driver’s insurance covers the first $10,000 of the driver’s own medical bills without the need for a lawsuit to establish fault. However, the driver is still deemed at fault for the property damage they cause.

If Driver X makes an illegal turn and causes an accident that injures Driver Y and destroys Driver Y’s car, Driver X’s insurance would pay $10,000 toward the cost of repairs or a new vehicle for Driver Y. However, Driver X would not be responsible for Driver Y’s medical bills unless they exceed Driver Y’s PIP coverage limits.

Attempts to Change the System

There have been several bills introduced over the years that would effectively change the car insurance scheme to a fault-based system, as used in other states. Proponents say the current system unfairly burdens victims and that a fault-based system would appropriately shift the burden onto negligent drivers. Opponents of the change say it would make it more difficult for accident victims to receive medical care after an accident and that it will drive insurance costs up.

If Florida does eventually transition to a fault-based system, it will be vitally important to establish liability for causation immediately after a collision. Instead of fighting with their PIP providers to get coverage for their injuries, accident victims will need to take on the defense teams of the insurance company representing the at-fault driver.

When Your Insurer Fails to Live Up to Obligations, It’s Time to Talk to an Insurance Advocate

Contrary to many assertions about “no-fault” insurance, the companies that provide PIP coverage do not always make it easy for their policyholders to receive the benefits promised under their policies. If you are embroiled in a dispute with your auto insurance company or dealing with any type of insurance conflict, the experienced insurance litigation attorneys at Ver Ploeg & Marino may be able to help you find the right resolution.

We are dedicated to protecting the rights of policyholders in complex situations. To schedule a confidential consultation to learn about the assistance our team could provide, call us at 305-577-3996 or contact us online now.

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