Florida Justice Reform Institute

Insurance Attorney Fee Fight Refueled

/in

News Service Florida

Rep. Hillary Cassel, R-Dania Beach, is sponsoring a bill to revamp a law about attorney fees in insurance disputes. Colin Hackley/File

  • By Jim Saunders – March 13, 2025

TALLAHASSEE — More than two years after the Legislature clamped down on lawsuits against property insurance companies, a House panel Thursday reopened a major debate about attorney fees when homeowners and insurers battle over claims.

The House Civil Justice & Claims Subcommittee voted 16-1 to approve a bill (HB 1551) that would revamp a 2022 law that shielded property insurers from paying customers’ attorney fees. The insurance industry argues the law has reduced costly litigation and helped revive the market after financial troubles.

But supporters of Thursday’s bill said the 2022 law was tilted too far toward insurers and led to homeowners being unable to fight companies over wrongfully denied claims.

“At some point, we as a Legislature have got to make sure that we’re standing up for the people of Florida and maybe not the insurance companies of Florida,” Rep. Michele Rayner, D-St. Petersburg, said.

Opponents of the bill, however, said the law has worked in helping attract carriers to Florida and holding down rates. They warned that the bill would undo the progress.

“Kudos to you. It (the law) is working,” Katelyn Ferry, who represented the business-backed Florida Justice Reform Institute, told the House panel. “Why are we fixing it?”

Attorney fees have long been a major battleground in insurance debates. Before the 2022 law, Florida had what is often described as a “one-way” attorney fee system for property insurance. Essentially, that meant If a policyholder successfully sued an insurer over a wrongfully denied claim, the insurer would be responsible for paying the policyholder’s attorney fees.

Supporters of the fee system said it ensured consumers would be able to go to court to challenge deep-pocketed insurers. But opponents said it provided an incentive for plaintiffs’ attorneys to flood the courts with lawsuits and drained money from the industry..

With carriers dropping large numbers of policies, increasing rates and, in some cases, going insolvent, lawmakers in 2022 eliminated the one-way fee system for property insurance. They followed in 2023 by passing legal changes that more broadly helped insurers.

The insurance industry and other supporters of eliminating one-way attorney fees, including Gov. Ron DeSantis, argue the change has helped the property insurance market bounce back.

The House bill would shift to what sponsor Hillary Cassel, R-Dania Beach, described as a “loser pays” fee system. If a policyholder sues an insurer, the judge would award attorney fees to whichever side prevails in the case.

Cassel said the approach would provide an incentive to settle disputes, while restoring “balance.”

“This bill does not bring us backward,” said Cassel, an attorney who represents consumers in cases against insurance companies. “But this bill does bring us balance. We are currently in an unbalanced, unjust system.”

The bill drew support from the groups such as the Florida Justice Association, which represents plaintiffs’ attorneys. It faced opposition from groups such as Associated Industries of Florida, the Florida Chamber of Commerce, the Florida Insurance Council and the Personal Insurance Federation of Florida, which represents national insurers.

“We believe this bill points us back in the direction of less options and a more unstable market by being less focused on the true needs of policyholders, whether they be homeowners or businesses, and more focused on the needs of the lawyers,” Associated Industries of Florida lobbyist Adam Basford said.

Rep. Susan Plasencia, R-Orlando, cast the dissenting vote Thursday. The bill would need to clear two more House panels before it could go to the full House. Sen. Jonathan Martin, R-Fort Myers, has filed a similar bill (SB 426) in the Senate.

https://www.newsserviceflorida.com/latest/headlines/insurance-attorney-fee-fight-refueled/article_4339d56c-004a-11f0-b292-9fb4add3c524.html

Florida Justice Reform Institute

Should insurers pay customers’ attorneys fees? Florida bill reopens debate.

/in

Tampa Bay Times

Gov. DeSantis and others in favor of eliminating one-way attorneys fees say the change has helped the insurance market bounce back.

People walk inside the Florida Capitol during a legislative session in Tallahassee, Thursday, March 6, 2025. [ REBECCA BLACKWELL | AP ]

By News Service of Florida
Published March 13

TALLAHASSEE — More than two years after the Legislature clamped down on lawsuits against property insurance companies, a House panel Thursday reopened a major debate about attorney fees when homeowners and insurers battle over claims.

The House Civil Justice & Claims Subcommittee voted 16-1 to approve a bill (HB 1551) that would revamp a 2022 law that shielded property insurers from paying customers’ attorney fees. The insurance industry argues the law has reduced costly litigation and helped revive the market after financial troubles.

But supporters of Thursday’s bill said the 2022 law was tilted too far toward insurers and led to homeowners being unable to fight companies over wrongfully denied claims.

“At some point, we as a Legislature have got to make sure that we’re standing up for the people of Florida and maybe not the insurance companies of Florida,” Rep. Michele Rayner, D-St. Petersburg, said.

Opponents of the bill, however, said the law has worked in helping attract carriers to Florida and holding down rates. They warned that the bill would undo the progress.

“Kudos to you. It (the law) is working,” Katelyn Ferry, who represented the business-backed Florida Justice Reform Institute, told the House panel. “Why are we fixing it?”

Attorney fees have long been a major battleground in insurance debates. Before the 2022 law, Florida had what is often described as a “one-way” attorney fee system for property insurance. Essentially, that meant if a policyholder successfully sued an insurer over a wrongfully denied claim, the insurer would be responsible for paying the policyholder’s attorney fees.

Supporters of the fee system said it ensured consumers would be able to go to court to challenge deep-pocketed insurers. But opponents said it provided an incentive for plaintiffs’ attorneys to flood the courts with lawsuits and drained money from the industry.

With carriers dropping large numbers of policies, increasing rates and, in some cases, going insolvent, lawmakers in 2022 eliminated the one-way fee system for property insurance. They followed in 2023 by passing legal changes that more broadly helped insurers.

The insurance industry and other supporters of eliminating one-way attorney fees, including Gov. Ron DeSantis, argue the change has helped the property insurance market bounce back.

The House bill would shift to what sponsor Hillary Cassel, R-Dania Beach, described as a “loser pays” fee system. If a policyholder sues an insurer, the judge would award attorney fees to whichever side prevails in the case.

Cassel said the approach would provide an incentive to settle disputes, while restoring “balance.”

“This bill does not bring us backward,” said Cassel, an attorney who represents consumers in cases against insurance companies. “But this bill does bring us balance. We are currently in an unbalanced, unjust system.”

The bill drew support from groups such as the Florida Justice Association, which represents plaintiffs’ attorneys. It faced opposition from groups such as Associated Industries of Florida, the Florida Chamber of Commerce, the Florida Insurance Council and the Personal Insurance Federation of Florida, which represents national insurers.

“We believe this bill points us back in the direction of less options and a more unstable market by being less focused on the true needs of policyholders, whether they be homeowners or businesses, and more focused on the needs of the lawyers,” Associated Industries of Florida lobbyist Adam Basford said.

Rep. Susan Plasencia, R-Orlando, cast the dissenting vote Thursday. The bill would need to clear two more House panels before it could go to the full House. Sen. Jonathan Martin, R-Fort Myers, has filed a similar bill (SB 426) in the Senate.

By Jim Saunders, News Service of Florida

https://www.tampabay.com/news/florida-politics/2025/03/13/insurance-one-way-attorney-fees-consumers-desantis-bill-house/

Florida Justice Reform Institute

A fight over insurance attorney fees is refuled in Florida

/in

Wmnf

 Property insurance. by designer481 via iStock for WMNF News.

Posted on March 13, 2025 • by News Service of Florida for WMNF

By Jim Saunders ©2025 The News Service of Florida

TALLAHASSEE — More than two years after the Legislature clamped down on lawsuits against property insurance companies, a House panel Thursday reopened a major debate about attorney fees when homeowners and insurers battle over claims.

The House Civil Justice & Claims Subcommittee voted 16-1 to approve a bill (HB 1551) that would revamp a 2022 law that shielded property insurers from paying customers’ attorney fees. The insurance industry argues the law has reduced costly litigation and helped revive the market after financial troubles.

But supporters of Thursday’s bill said the 2022 law was tilted too far toward insurers and led to homeowners being unable to fight companies over wrongfully denied claims.

“At some point, we as a Legislature have got to make sure that we’re standing up for the people of Florida and maybe not the insurance companies of Florida,” Rep. Michele Rayner, D-St. Petersburg, said.

Opponents of the bill, however, said the law has worked in helping attract carriers to Florida and holding down rates. They warned that the bill would undo the progress.

“Kudos to you. It (the law) is working,” Katelyn Ferry, who represented the business-backed Florida Justice Reform Institute, told the House panel. “Why are we fixing it?”

Attorney fees have long been a major battleground in insurance debates. Before the 2022 law, Florida had what is often described as a “one-way” attorney fee system for property insurance. Essentially, that meant If a policyholder successfully sued an insurer over a wrongfully denied claim, the insurer would be responsible for paying the policyholder’s attorney fees.

Supporters of the fee system said it ensured consumers would be able to go to court to challenge deep-pocketed insurers. But opponents said it provided an incentive for plaintiffs’ attorneys to flood the courts with lawsuits and drained money from the industry..

With carriers dropping large numbers of policies, increasing rates and, in some cases, going insolvent, lawmakers in 2022 eliminated the one-way fee system for property insurance. They followed in 2023 by passing legal changes that more broadly helped insurers.

The insurance industry and other supporters of eliminating one-way attorney fees, including Gov. Ron DeSantis, argue the change has helped the property insurance market bounce back.

The House bill would shift to what sponsor Hillary Cassel, R-Dania Beach, described as a “loser pays” fee system. If a policyholder sues an insurer, the judge would award attorney fees to whichever side prevails in the case.

Cassel said the approach would provide an incentive to settle disputes, while restoring “balance.”

“This bill does not bring us backward,” said Cassel, an attorney who represents consumers in cases against insurance companies. “But this bill does bring us balance. We are currently in an unbalanced, unjust system.”

The bill drew support from the groups such as the Florida Justice Association, which represents plaintiffs’ attorneys. It faced opposition from groups such as Associated Industries of Florida, the Florida Chamber of Commerce, the Florida Insurance Council and the Personal Insurance Federation of Florida, which represents national insurers.

“We believe this bill points us back in the direction of less options and a more unstable market by being less focused on the true needs of policyholders, whether they be homeowners or businesses, and more focused on the needs of the lawyers,” Associated Industries of Florida lobbyist Adam Basford said.

Rep. Susan Plasencia, R-Orlando, cast the dissenting vote Thursday. The bill would need to clear two more House panels before it could go to the full House. Sen. Jonathan Martin, R-Fort Myers, has filed a similar bill (SB 426) in the Senate.

A fight over insurance attorney fees is refuled in Florida

Florida Justice Reform Institute

Who pays attorney fees in a property insurance lawsuit? Florida bill shifts the burden again

/in

Bill shifts to responsibility to lawsuit loser

State representatives applaud in the House chamber during the opening session of the 2025 legislative session, Tuesday, March 4, 2025, at the state capitol in Tallahassee, Fla.. (AP Photo/Rebecca Blackwell) (Rebecca Blackwell, Copyright 2025 The Associated Press. All rights reserved.)

Jim Saunders, Reporter, News Service of Florida

Published: March 13, 2025 at 7:55 PM

TALLAHASSEE, Fla. – More than two years after the Legislature clamped down on lawsuits against property insurance companies, a House panel Thursday reopened a major debate about attorney fees when homeowners and insurers battle over claims.

The House Civil Justice & Claims Subcommittee voted 16-1 to approve a bill (HB 1551) that would revamp a 2022 law that shielded property insurers from paying customers’ attorney fees. The insurance industry argues the law has reduced costly litigation and helped revive the market after financial troubles.

But supporters of Thursday’s bill said the 2022 law was tilted too far toward insurers and led to homeowners being unable to fight companies over wrongfully denied claims.

“At some point, we as a Legislature have got to make sure that we’re standing up for the people of Florida and maybe not the insurance companies of Florida,” said Rep. Michele Rayner, D-St. Petersburg.

Opponents of the bill, however, said the law has worked in helping attract carriers to Florida and holding down rates. They warned that the bill would undo the progress.

“Kudos to you. It (the law) is working,” Katelyn Ferry, who represented the business-backed Florida Justice Reform Institute, told the House panel. “Why are we fixing it?”

Attorney fees have long been a major battleground in insurance debates. Before the 2022 law, Florida had what is often described as a “one-way” attorney fee system for property insurance. Essentially, that meant If a policyholder successfully sued an insurer over a wrongfully denied claim, the insurer would be responsible for paying the policyholder’s attorney fees.

Supporters of the fee system said it ensured consumers would be able to go to court to challenge deep-pocketed insurers. But opponents said it provided an incentive for plaintiffs’ attorneys to flood the courts with lawsuits and drained money from the industry.

With carriers dropping large numbers of policies, increasing rates and, in some cases, going insolvent, lawmakers in 2022 eliminated the one-way fee system for property insurance. They followed in 2023 by passing legal changes that more broadly helped insurers.

The insurance industry and other supporters of eliminating one-way attorney fees, including Gov. Ron DeSantis, argue the change has helped the property insurance market bounce back.

The House bill would shift to what sponsor Hillary Cassel, R-Dania Beach, described as a “loser pays” fee system. If a policyholder sues an insurer, the judge would award attorney fees to whichever side prevails in the case.

Cassel said the approach would provide an incentive to settle disputes while restoring “balance.”

“This bill does not bring us backward,” said Cassel, an attorney who represents consumers in cases against insurance companies. “But this bill does bring us balance. We are currently in an unbalanced, unjust system.”

The bill drew support from groups such as the Florida Justice Association, which represents plaintiffs’ attorneys. It faced opposition from groups such as Associated Industries of Florida, the Florida Chamber of Commerce, the Florida Insurance Council and the Personal Insurance Federation of Florida, which represents national insurers.

“We believe this bill points us back in the direction of less options and a more unstable market by being less focused on the true needs of policyholders, whether they be homeowners or businesses, and more focused on the needs of the lawyers,” Associated Industries of Florida lobbyist Adam Basford said.

Rep. Susan Plasencia, R-Orlando, cast the dissenting vote Thursday. The bill would need to clear two more House panels before it could go to the full House. Sen. Jonathan Martin, R-Fort Myers, has filed a similar bill (SB 426) in the Senate.

https://www.clickorlando.com/news/2025/03/13/who-pays-attorney-fees-in-a-property-insurance-lawsuit-florida-bill-shifts-the-burden-again/

Florida Justice Reform Institute

DeSantis stands firm against repealing Florida’s no-fault auto insurance law

/in

Governor previously vetoed a bill aimed at shifting the state to a fault-based insurance system

By 

Efforts to dismantle Florida’s no-fault automobile insurance system may hit a roadblock as Gov. Ron DeSantis remains opposed to the proposed repeal. The governor previously vetoed a bill aimed at shifting the state to a fault-based insurance system and has shown no signs of reversing course.

Speaking after his State of the State address last Tuesday, DeSantis reiterated his stance, saying, “If they have a reform where we can show that it’s going to lower rates, it’s fine. But let’s just be clear. I mean, you know, we know that’s something that people from the legal and the trial bar have wanted to do. And so why would they want to do that? Obviously, they see that there’s opportunities for them to make money off of it.” He added, “I don’t want to do anything that’s going to raise the rates.”

Proposed legislative changes

Legislation proposed by Sen. Erin Grall (R-Vero Beach) and Rep. Alex Andrade (R-Escambia County) seeks to eliminate the requirement for personal injury protection (PIP) insurance and instead mandate bodily injury liability coverage of $25,000 per individual, $50,000 per incident, and $10,000 in property damage liability.

The House version (HB 1181) has been assigned to three committees: Civil Justice & Claims, Insurance & Banking, and Judiciary. The Senate version (SB 1256) must go through the Banking and Insurance, Appropriations on Agriculture, Environment, and General Government, and Rules committees before reaching the floor.

Personal injury protection (PIP) is a type of auto insurance that covers medical costs, lost wages, and related expenses for those injured in a car accident, regardless of who was at fault. Under Florida’s no-fault insurance law, drivers must carry a minimum of $10,000 in PIP and an additional $10,000 in property damage liability coverage.

 

The current system limits lawsuits against at-fault drivers, preventing claims for non-economic damages such as pain and suffering unless the injured party suffers a permanent injury, disfigurement, or death. The Florida Justice Association, which represents trial lawyers, has long supported repealing PIP, citing high insurance costs in the state.

Opponents of the repeal, including insurance industry lobbyists and Florida Justice Reform Institute President William Large, argue that lawmakers should allow more time to evaluate the impact of recent legislative changes before overhauling the system. Specifically, they want to assess how the elimination of one-way attorney fees, enacted in 2023, will influence insurance rates over the next few years.

Historically, Florida law allowed policyholders to recover attorney fees from insurers if they had to sue to obtain claim payments, a practice that critics argued incentivized excessive litigation. In 2023, the Legislature amended the law to require both parties to cover their own legal costs.

The debate over no-fault insurance is not new. In 2021, the Legislature passed a bill (SB 54) to replace PIP with a fault-based system, only for DeSantis to veto it. At the time, he acknowledged flaws in the PIP system but warned that repeal could create unintended consequences for both the market and consumers.

With legislative efforts once again underway, DeSantis’ opposition could prove a significant hurdle, leaving Florida’s no-fault system intact for the foreseeable future.

How did we get to where we are today?

Florida’s Personal Injury Protection (PIP) insurance system has a long and complex history, shaped by legislative reforms, legal battles, and ongoing debates about its effectiveness. PIP was introduced in 1971 as part of the state’s no-fault auto insurance system, aiming to provide medical coverage and lost wage benefits to accident victims regardless of fault. Over the years, the system has faced significant challenges due to fraud, rising costs, and attempts to repeal or replace it.

Origins and Implementation

In 1971, Florida became one of the first states to adopt a no-fault auto insurance system, requiring drivers to carry PIP coverage. The goal was to reduce litigation related to auto accidents by ensuring individuals involved in crashes could access up to $10,000 in medical expenses, lost wages, and death benefits. The system was designed to lower insurance costs by limiting lawsuits over minor accidents.

Challenges and reforms

Over time, the PIP system faced numerous issues, primarily due to fraudulent claims and staged accidents, which led to increased premiums for drivers. Several legislative reforms were enacted to address these challenges.

2003 – Anti-fraud measures

In response to growing fraud and staged accident schemes, Florida introduced reforms that increased penalties for fraudulent PIP claims. The law also implemented stricter licensing requirements for healthcare providers to curb fraudulent medical billing.

2007 – Sunset and reinstatement

Florida’s PIP law briefly expired in 2007, but was reinstated within months due to concerns over increased lawsuits and lack of coverage for accident victims. The reinstated law introduced additional anti-fraud measures and required medical providers to be licensed to bill for PIP benefits.

2012 – House Bill 119 (PIP Reform Law)

One of the most significant overhauls occurred in 2012 under Governor Rick Scott. The reform introduced several key provisions:

  • Accident victims had 14 days to seek medical treatment, or they would lose PIP benefits.
  • Medical benefits were capped at $2,500 unless a physician, dentist, or emergency department diagnosed an emergency medical condition.
  • Massage therapy and acupuncture were no longer covered under PIP.
  • Required insurers to reduce PIP premiums by at least 10 percent by October 2012 and 25 percent by 2014, though costs did not significantly decrease for consumers.

Key legal battles

Several court cases have shaped the interpretation and enforcement of PIP insurance in Florida.

Kingsway Amigo Insurance Co. v. Ocean Health, Inc. (2011)

A Florida court ruled that insurers could not limit PIP payments to a Medicare fee schedule unless explicitly stated in the policy. This ruling led to insurers revising their PIP policies to clarify payment limitations.

2013 – Constitutional Challenge to PIP Reform

After the 2012 reforms, a group of chiropractors, massage therapists, and acupuncturists sued the state, arguing that the $2,500 limit and treatment restrictions were unconstitutional. A Leon County Circuit Judge initially blocked parts of the law, but an appeals court overturned the decision in 2014, allowing the reforms to stand.

Progressive Select Insurance Co. v. Florida Hospital Medical Center (2017)

The Florida Supreme Court ruled that insurance companies must clearly state in their policies how PIP benefits will be reimbursed. The case arose when Progressive attempted to pay medical providers based on the Medicare fee schedule, but the court found that the policy language did not specify this limitation.

Attempts to Repeal PIP

There have been several legislative efforts to replace PIP with a traditional liability-based system, but none have succeeded so far.

2018 – Failed PIP Repeal Attempt

Lawmakers pushed a bill to eliminate PIP and replace it with mandatory Bodily Injury (BI) coverage, but Governor Rick Scott opposed it, fearing higher premiums for some drivers.

2021 – Senate Bill 54 (PIP Repeal Bill)

The Florida Legislature passed a bill to replace PIP with a mandatory $25,000 bodily injury insurance requirement, but Governor Ron DeSantis vetoed it, citing concerns over potential cost increases for consumers.

2023-2024 – Continued Debate

Florida lawmakers continue to discuss replacing PIP with a fault-based system, but no major legislative changes have been enacted as of early 2024.

Current challenges and future outlook

Fraud remains a major issue, with Florida ranking among the top states for insurance fraud due to staged accidents, fraudulent medical billing, and excessive litigation. High insurance costs continue to burden Florida drivers, as the state has some of the highest auto insurance premiums in the nation. Lawmakers continue to explore potential replacements for PIP, but concerns remain about how changes would impact low-income drivers and uninsured motorist rates.

Conclusion

Florida’s PIP system has faced multiple reforms, legal challenges, and legislative repeal attempts over the past 50 years. Despite efforts to reduce fraud and control costs, PIP insurance remains a contentious issue. Future reforms may replace PIP with a traditional liability-based system, but until then, Florida drivers continue to navigate one of the most complex no-fault insurance systems in the US.

https://www.insurancebusinessmag.com/us/news/legal-insights/desantis-stands-firm-against-repealing-floridas-nofault-auto-insurance-law-527920.aspx

Florida Justice Reform Institute

Increasing percentage of uninsured drivers adding to Florida’s car insurance woes for now

/in
Palm Beach Post

Increasing percentage of uninsured drivers adding to Florida’s car insurance woes for now

Anne Geggis, Palm Beach Post

Just like property insurance, what Florida drivers are paying for car insurance stands out nationally and part of what’s fueling those prices is the high number of motorists driving without insurance.

Nationally, the portion of drivers on the road without car insurance started accelerating with the pandemic in 2020 and it’s kept increasing, according to the Insurance Research Council, an organization the insurance industry supports. The same study also shows that Florida drivers are revving up the trend more than the average.

In 2022, an estimated 16% of Florida drivers were uninsured, ranking the state at 15th nationally for the proportion among the state’s 16.4 million licensed drivers. Now the latest figures, from 2023, reveal one in five drivers in Florida is uninsured. Only five states and the District of Columbia have higher rates: Mississippi has the highest proportion, followed by New Mexico, D.C., Michigan, Tennessee and Missouri, according to the study.

The state of Florida appears to calculate uninsured drivers differently than the Insurance Research Council. The Florida Department of Highway Safety and Motor Vehicles says a little less than 6% of state drivers are uninsured, according to data from this month.

Still, insurance industry officials are raising the alarm.

“It’s a very concerning trend to the industry that the uninsured rate continues to go up,” said Mark Friedlander, director of corporate communications for the industry-backed Insurance Information Institute, which is affiliated with the Insurance Research Council. “The laws are very clear in the state of Florida. Insurance is not discretionary.”

Ironically enough, though, no other state requires a lower level of insurance coverage to get behind the wheel, except for New Hampshire. And even though the Granite State doesn’t require it, 90% of residents there are insured, according to the study.

Most other states require that motorists sign on for at least $25,000 worth of bodily injury coverage. That compares to Florida, which requires only $10,000 in personal injury protection and $10,000 for property damage. North Carolina just increased its required minimums so that motorists must get coverage that would pay $50,000 per person and $100,000 per accident when there’s bodily injury and $50,000 for property damage.

Even with Florida’s low bar for meeting minimum liability requirements, residents in only three other states — New York, New Jersey and Nevada — pay more than Floridians to meet the minimum coverage requirement for driving in their state, according to Bankrate, an online financial guide for consumers breaking down pros and cons of mortgages, credit cards and investments.

Florida’s current insurance coverage minimums have been in place since the 1970s.

Legislation was passed in 2021 that would have raised those minimums and repealed the state’s “no fault” laws, but Gov. Ron DeSantis vetoed it. The debate may be teeing up again — two similar bills have been introduced for the Florida legislature’s session now underway that would increase the minimum coverage and repeal the state’s no-fault accident law.

Changing the current system is a tough call, Friedlander observed, given that increasing the minimum insurance required would likely make getting on the road fully legal even more expensive when so many have already chosen to skip it because of the current high cost.
“I understand why they are not moving forward on it,” Friedlander said.

Lots of individual variables go into calculating the cost that the consumer sees on their car insurance bill, such as driving history, traffic citations and make and model of the car insured. In March, Bankrate found that the average annual cost of “full coverage” in Florida is the most of any other state, coming in at $4,210 per year. That bill is calculated using a 40-year-old with a good credit score and clean driving record who commutes five days a week in a 2023 Toyota Camry as a customer.

That policy would offer much more coverage than the minimum the state requires. That annual insurance payment of $4,210 would buy, in the event of an accident, $100,000 for personal injury coverage; bodily injury liability of $100,000 per person and $300,000 per accident; and uninsured motorist bodily injury coverage at $100,000 per person and $300,000 for an accident. It would also pay up to $50,000 for property damage after the $500 deductible is paid.
Driver gathering evidence after an accident.

Why are the premiums so high?

Besides the high probability of running into an uninsured motorist, the same factors that bedevil the state’s high property insurance costs — hurricanes and a high rate of lawsuits — also drive the car insurance market, according to Dustyne Bryant, who develops curriculum for insurance professionals and hosted a podcast “Awkward Insurance” for four years.

But leaders who support the current system say, just like with property insurance, automotive insurance premiums should be dropping soon as recent changes to lawsuit laws to stem the tide of litigation take hold.

DeSantis, at a news conference last month, highlighted filings that show car insurance carriers Geico, State Farm and Progressive have lowered their rates.

Costs remain high right now because the full effect of 2023 legislation that stops attorneys from suing over minimal amounts won’t be entirely realized until 2028, industry observers say. That’s when insurance companies see their litigation risk dropping, says William Large, president of the Florida Justice Reform Institute. He noted that before changes to the state’s tort laws, which his organization supported, lawyers were suing over amounts as infinitesimal as interest charges.

“We fixed PIP (personal injury protection) — that’s my opinion, and I believe it’s going to be proven out within the next five years,” Large said. “I and others want to see data come in. So why go change this before the data has really come in?”

 A damaged vehicle after a car accident on the road.

The sponsors of the legislation couldn’t be reached for comment.

Uninsured motorist coverage part of typical package

Still, given the one-in-five-chance that one might have an accident with an uninsured driver in Florida, Coral Springs insurance agent Andy Kasten says he strongly recommends that his clients buy uninsured motorist coverage.

“If someone causes you a lot of bodily injury, if they don’t have insurance, at least you can somewhat be made whole,” said Kasten, president of Creative Financial Property & Casualty Group.

In the current climate, that will add about 13% to the total, typical bill, Kasten said.

Anne Geggis is the insurance reporter at The Palm Beach Post, part of the USA TODAY Florida Network.

https://www.yahoo.com/news/increasing-percentage-uninsured-drivers-adding-154326502.html

Florida Justice Reform Institute

Increasing percentage of uninsured drivers adding to Florida’s car insurance woes for now

/in
Palm Beach Post

Anne Geggis – March 9, 2025

Just like property insurance, what Florida drivers are paying for car insurance stands out nationally and part of what’s fueling those prices is the high number of motorists driving without insurance.

Nationally, the portion of drivers on the road without car insurance started accelerating with the pandemic in 2020 and it’s kept increasing, according to the Insurance Research Council, an organization the insurance industry supports. The same study also shows that Florida drivers are revving up the trend more than the average.

In 2022, an estimated 16% of Florida drivers were uninsured, ranking the state at 15th nationally for the proportion among the state’s 16.4 million licensed drivers. Now the latest figures, from 2023, reveal one in five drivers in Florida is uninsured. Only five states and the District of Columbia have higher rates: Mississippi has the highest proportion, followed by New Mexico, D.C., Michigan, Tennessee and Missouri, according to the study.

The state of Florida appears to calculate uninsured drivers differently than the Insurance Research Council. The Florida Department of Highway Safety and Motor Vehicles says a little less than 6% of state drivers are uninsured, according to data from this month.

Still, insurance industry officials are raising the alarm.

“It’s a very concerning trend to the industry that the uninsured rate continues to go up,” said Mark Friedlander, director of corporate communications for the industry-backed Insurance Information Institute, which is affiliated with the Insurance Research Council. “The laws are very clear in the state of Florida. Insurance is not discretionary.”

Ironically enough, though, no other state requires a lower level of insurance coverage to get behind the wheel, except for New Hampshire. And even though the Granite State doesn’t require it, 90% of residents there are insured, according to the study.

Most other states require that motorists sign on for at least $25,000 worth of bodily injury coverage. That compares to Florida, which requires only $10,000 in personal injury protection and $10,000 for property damage. North Carolina just increased its required minimums so that motorists must get coverage that would pay $50,000 per person and $100,000 per accident when there’s bodily injury and $50,000 for property damage.

Even with Florida’s low bar for meeting minimum liability requirements, residents in only three other states — New York, New Jersey and Nevada — pay more than Floridians to meet the minimum coverage requirement for driving in their state, according to Bankrate, an online financial guide for consumers breaking down pros and cons of mortgages, credit cards and investments.

Florida’s current insurance coverage minimums have been in place since the 1970s.

Legislation was passed in 2021 that would have raised those minimums and repealed the state’s “no fault” laws, but Gov. Ron DeSantis vetoed it. The debate may be teeing up again — two similar bills have been introduced for the Florida legislature’s session now underway that would increase the minimum coverage and repeal the state’s no-fault accident law.

Changing the current system is a tough call, Friedlander observed, given that increasing the minimum insurance required would likely make getting on the road fully legal even more expensive when so many have already chosen to skip it because of the current high cost.

“I understand why they are not moving forward on it,” Friedlander said.

Lots of individual variables go into calculating the cost that the consumer sees on their car insurance bill, such as driving history, traffic citations and make and model of the car insured. In March, Bankrate found that the average annual cost of “full coverage” in Florida is the most of any other state, coming in at $4,210 per year. That bill is calculated using a 40-year-old with a good credit score and clean driving record who commutes five days a week in a 2023 Toyota Camry as a customer.

That policy would offer much more coverage than the minimum the state requires. That annual insurance payment of $4,210 would buy, in the event of an accident, $100,000 for personal injury coverage; bodily injury liability of $100,000 per person and $300,000 per accident; and uninsured motorist bodily injury coverage at $100,000 per person and $300,000 for an accident. It would also pay up to $50,000 for property damage after the $500 deductible is paid.

Driver gathering evidence after an accident. Courtesy of Ginnis, Karthen, & Zeinick 

Why are the premiums so high?

Besides the high probability of running into an uninsured motorist, the same factors that bedevil the state’s high property insurance costs — hurricanes and a high rate of lawsuits — also drive the car insurance market, according to Dustyne Bryant, who develops curriculum for insurance professionals and hosted a podcast “Awkward Insurance” for four years.

But leaders who support the current system say, just like with property insurance, automotive insurance premiums should be dropping soon as recent changes to lawsuit laws to stem the tide of litigation take hold.

DeSantis, at a news conference last month, highlighted filings that show car insurance carriers Geico, State Farm and Progressive have lowered their rates.

Costs remain high right now because the full effect of 2023 legislation that stops attorneys from suing over minimal amounts won’t be entirely realized until 2028, industry observers say. That’s when insurance companies see their litigation risk dropping, says William Large, president of the Florida Justice Reform Institute. He noted that before changes to the state’s tort laws, which his organization supported, lawyers were suing over amounts as infinitesimal as interest charges.

“We fixed PIP (personal injury protection) — that’s my opinion, and I believe it’s going to be proven out within the next five years,” Large said. “I and others want to see data come in. So why go change this before the data has really come in?”

A damaged vehicle after a car accident on the road. Courtesy of Ginnis, Karthen, & Zeinick

The sponsors of the legislation couldn’t be reached for comment.

Uninsured motorist coverage part of typical package

Still, given the one-in-five-chance that one might have an accident with an uninsured driver in Florida, Coral Springs insurance agent Andy Kasten says he strongly recommends that his clients buy uninsured motorist coverage.

“If someone causes you a lot of bodily injury, if they don’t have insurance, at least you can somewhat be made whole,” said Kasten, president of Creative Financial Property & Casualty Group.

In the current climate, that will add about 13% to the total, typical bill, Kasten said.

Anne Geggis is the insurance reporter at The Palm Beach Post, part of the USA TODAY Florida Network.

https://www.palmbeachpost.com/story/business/2025/03/09/meeting-the-states-required-minimums-is-costing-motorists-more-than-what-others-pay-for-full-coverag/81607838007/

Florida Justice Reform Institute

Gov. DeSantis opposes repealing Florida’s no-fault auto law. Will his stand stall Legislature’s efforts?

/in

Florida Politics

Florida Phoenix – March 7, 2025

‘I don’t want to do anything that’s going to raise the rates.’

Gov. Ron DeSantis seems determined to put the brakes on efforts in the Legislature to scrap the state’s no-fault automobile insurance laws, including a requirement for drivers to buy personal injury protection.

The Governor already vetoed one bill to repeal the state’s no-fault system and replace it with a fault-based one instead. Following his State of the State speech Tuesday, DeSantis indicated he has not changed his mind.

“If they have a reform where we can show that it’s going to lower rates, it’s fine. But let’s just be clear. I mean, you know, we know that’s something that people from the legal and the trial bar have wanted to do. And so why would they want to do that? Obviously, they see that there’s opportunities for them to make money off of it,” DeSantis told reporters.

“I think that goes without saying. So, I don’t want to do anything that’s going to raise the rates.”

Republican Sen. Erin Grall of Vero Beach and Rep. Danny Alvarez of Hillsborough County have both filed bills to eliminate the requirement that drivers carry personal injury protection. Instead, the bills require drivers to carry $25,000 in bodily injury coverage for one person and $50,000 for two or more people per incident plus $10,000 in property liability coverage.

Alvarez’s bill (HB 1181) has been referred to three House committees: the Civil Justice & Claims Subcommittee; Insurance & Banking Subcommittee; and the Judiciary Committee. Grall’s bill (SB 1256) faces hearings before the Banking and Insurance; Appropriations Committee on Agriculture, Environment, and General Government; and Rules committees.

Define ‘PIP’

Personal injury protection (PIP) is a type of car insurance that pays medical expenses, lost wages and other costs of drivers and passengers injured in automobile accidents, regardless of who caused the accident.

Florida drivers are required to carry $10,000 in PIP coverage on their insurance policies under Florida’s no-fault automobile insurance system, plus $10,000 in property damage liability coverage. Those are minimum requirements and drivers can, and do, purchase additional coverage.

According to the Department of Highway Safety and Motor Vehicles, just under 6% of the drivers on Florida roads were uninsured as of February.

The state’s no-fault automobile insurance laws ban injured parties from bringing lawsuits against at-fault parties to recover noneconomic damages, such as pain and suffering and loss of consortium, although there are some exceptions (if a person suffers a permanent loss of an important bodily function; a permanent injury; a permanent scar or disfigurement; or death).

The Florida Justice Association, representing the trial bar, supports PIP repeal and notes that a Forbes analysis of automobile insurance rates pegs Florida as the most expensive state for car insurance in the nation. To meet the requirements of the law costs an average $1,529 annually.

Lobbying surge

A cadre of insurance lobbyists oppose the repeal, as does Florida Justice Reform Institute President William Large. They argue lawmakers should allow the state’s no-fault laws and PIP to remain in place for at least another three years to ascertain the effect the elimination of one-way attorneys fees will have on rates going forward.

Since 1893, state law allowed policyholders to force carriers to pay any attorneys fees they rack up if forced to sue to enforce claims — hence “one-way” fees. The idea was to counterbalance insurers’ financial and legal clout. In 2023, the Legislature required both parties to pay for their own attorneys fees.

The Legislature agreed in 2021 to repeal the no-fault system and the minimum mandated coverages and return to a fault-based system, but DeSantis vetoed the bill (SB 54). In his veto letter, DeSantis stated at the time that although the “PIP system has flaws,” repeal could bring unintended consequences for the market and the consumer.

House Speaker Daniel Perez, who was Vice Chair of the House Judiciary Committee at the time, voted for the repeal.

___

Christine Sexton reporting. Florida Phoenix is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Florida Phoenix maintains editorial independence. Contact Editor Michael Moline for questions: info@floridaphoenix.com.

Gov. DeSantis opposes repealing Florida’s no-fault auto law. Will his stand stall Legislature’s efforts?

Florida Justice Reform Institute

Investigations to Legislation: Florida Lawmakers Weighing Insurance Industry Changes

/in
Insurance Journal

By  | March 6, 2025

Florida legislative leaders, facing increasing pressure from the public and the press, this week pledged to investigate property insurers’ financial structures. And bills filed before the 2025 Legislature began this week also would require executive pay disclosure by carriers, along with other changes that could affect insurance agents and insureds.

Here’s a look at some of the issues Florida lawmakers are considering as they convene in Tallahassee.

Investigation on MGAs

Newly sworn House Speaker Danny Perez, R-Miami, on Tuesday announced an investigation into property insurance carriers’ relationships with their managing general agents and other affiliated companies. The call for House hearings came a week after the Tampa Bay Times and Miami Herald reported that a 2022 analysis by the Florida Office of Insurance Regulation, made available only after a two-year wait on a public records request, suggests that insurers had diverted billions to affiliate companies while claiming financial hardship from hurricanes and claims litigation.

Perez

It’s far from certain if the speaker’s probe will lead to new restrictions or new reporting requirements for Florida carriers and MGAs. It’s not the first time the issue has been raised.

Insurance agents and industry advocates and lobbyists have pushed back on the news report and on the call for further investigations. Several have noted that the MGA arrangements that carriers employ already must be approved by OIR, and that it would be absurd for insurance holding companies to deliberately allow a carrier to sink into insolvency while diverting profits.

The Tampa Bay Times report “glides right by the comment that many affiliated companies poured back almost $700 million to the insurance companies in order to keep them from insolvency,” wrote Alan McGinnis, principal at McGinnis Himmel Insurance Agency in Tallahassee. His guest column was posted in Florida Politics and in insurance consultants recent blog posts.

Meanwhile, legislative changes enacted in recent years seem to be working, slowly but surely, bringing new capital and new carriers to the Florida market, with a slowing of rate increases.

Bills in the Hopper

Even without a House investigation on the table, insurance costs remain the number one concern for Florida homeowners, the Florida Association of Insurance Agents’ B.G. Murphy said in a recent webinar. At the same time, Florida business leaders and insurance executives and agents have urged lawmakers to steer clear of any changes to the 2022-2023 reforms that ended one-way attorney fees and disincentivized costly claims litigation.

The opposing sentiments have resulted in several bills that insurance interests are watching this year.

House Bill 643

HB 643, by Rep. John Snyder, R-Palm Beach, is considered a top priority for the FAIA. It would make it easier for agents to move commercial and commercial residential policyholders to surplus lines, and to sell Citizens Property Insurance Corp. policies. Agents would no longer be required to make a “diligent effort” to find coverage before obtaining surplus lines coverage.

“The diligent effort requirement serves no purpose,” Murphy said.

The bill also would soften the 2024 requirement that agents be appointed with at least three carriers before writing Citizens’ policies. Under HB 643, agents would be able to obtain a signed statement showing they have access to primary market carriers through a broker.

Senate Bill 230

Sponsored by Rep. Keith Truenow, R-Tavares, this omnibus-type bill would make a number of changes. For agents, it would reduce the number of pre-licensing education hours from 200 to 60 – a rule change that FAIA strongly opposes. That would “dumb down” the requirements for agents, something few people really want, FAIA’s Dave Newell said.

The measure, however, also would make it a little easier for insurers to avoid bad-faith claims, by further clarifying 2022 law that requires a court finding that the policy contract was breached, before extra-contractual damages can be demanded. It also would require plaintiffs to specify exact damage amounts, and would exclude attorney fees from damages. If insurers require more information from policyholders, that would have to be requested within a 60-day notice period, with 10-day extensions allowed.

It also would bar public adjusters from engaging in adversarial conduct with insurance adjusters, including recording insurer personnel. This has been an issue in recent years, with Citizens and other carriers charging that some public adjusters have physically threatened insurer claims workers, have video-recorded them and have taken other actions to thwart inspections.

SB 592 and HB 393

The bills would extend the popular My Safe Florida Condominium pilot program but would clarify that some detached buildings would not be eligible for the grants. It also would allow just 75% of unit owners to agree to apply for the program, not the current level of 100%. Only condo buildings of three stories or higher would be eligible.

For single-home mitigation measures, SB 1466 and HB 851 would set up a trust fund that would provide perhaps $70 million annually for the My Safe Florida Home program. It would allocate 5% of sales tax revenue generated from hurricane-impacted counties in the two months after a storm makes landfall.

SB 128

SB 128, by Sen. Danny Burgess, R-Zephyrhills, may get some attention since it appears to be consumer-friendly at a time of rising concerns about insurance corporation rates and practices. But it has led to some confusion in the industry.

The bill would require cancellation and nonrenewal notices be mailed and emailed at least 45 days before the termination date. But Florida law already requires 120-day notice for most nonrenewals and cancellations. SB 790 and HB 941 would bar insurers from cancelling policies for at least 90 days after repairs are made.

HB 705

The measure would exempt new Citizens policies from the glidepath, a statutory mechanism that limits Citizens’ rate increases each year. The change would be highly controversial but is considered free-market friendly.

Primary market insurance leaders and Citizens’ top brass have all called for an end to the glidepath, in order to allow the insurer of last resort to truly be an insurer of last resort and charge market rates or higher, which could encourage more competition. But Florida’s insurance commissioner and OIR recently slashed a proposed Citizens rate increase in half, keeping premiums for the carrier lower than other insurers in many areas of the state for 2025.

SB 554/HB551

State Sen. Don Gaetz was in the Florida Legislature for a number of years until he retired in 2016. Now he’s back, after being re-elected last fall. His bill, SB 554, would make a number of revisions that can be seen as consumer-friendly, but which insurers and agents say would unwind most of the 2022 litigation reforms.

The measure would repeal the 2022 ban on one-way attorney fees, replacing it with a sliding scale. It also would require more disclosure of insurer executive compensation packages.

SB 734/HB6017

The bills would allow non-dependent family members to file medical malpractice suits. Long an issue in Florida, the current “free kill” statute, as it’s known derisively, limits tort actions only to spouses or dependent children of people fatally injured in medical treatment. Critics, including the Florida Justice Reform Institute, insurance companies and medical providers, have said passage of the measures would greatly increase the number of lawsuits filed in the state.

Dozens of other bills have been filed this year, including one that would make Citizens the wind insurer for all of Florida. But many of those offers are not expected to see much traction. Because the weeks preceding the regular session were taken up with immigration bills, that left little time for committee action on insurance legislation, meaning lawmakers now have only about five weeks to move bills across the finish line, explained former deputy insurance commissioner Lisa Miller.

Top photo: The state Capitol building in Tallahassee (Adobe Stock images)

https://www.insurancejournal.com/news/southeast/2025/03/06/814374.htm

Florida Justice Reform Institute

DeSantis opposes repealing Florida’s no-fault auto law. Will his stand stall Legislature’s efforts?

/in

Florida Phoenix

DeSantis opposes repealing Florida’s no-fault auto law. Will his stand stall Legislature’s efforts?

Christine Sexton – Thu, March 6, 2025 at 4:46 PM EST
Traffic on I-95 via Florida DOT.

Gov. Ron DeSantis seems determined to put the brakes on efforts in the Florida Legislature to scrap the state’s no-fault automobile insurance laws, including a requirement for drivers to buy personal injury protection.

The governor already vetoed one bill to repeal the state’s no-fault system and replace it with a fault-based one instead. Following his State of the State speech Tuesday, DeSantis indicated he has not changed his mind.

“If they have a reform where we can show that it’s going to lower rates, it’s fine. But lets just be clear. I mean, you know, we know that’s something that people from the legal and the trial bar have wanted to do. And so why would they want to do that? Obviously, they see that there’s opportunities for them to make money off of it,” DeSantis told reporters.

“I think that goes without saying. So, I don’t want to do anything that’s going to raise the rates.”

Republican Sen. Erin Grall of Vero Beach and Rep. Danny Alvarez of Hillsborough County have both filed bills to eliminate the requirement that drivers carry personal injury protection. Instead, the bills require drivers to carry $25,000 in bodily injury coverage for one person and $50,000 for two or more people per incident plus $10,000 in property liability coverage.

Alvarez’s bill, (HB 1181) has been referred to three House committees: the Civil Justice & Claims Subcommittee; Insurance & Banking Subcommittee; and the Judiciary Committee. Grall’s bill (SB 1256) faces hearings before the Banking and Insurance; Appropriations Committee on Agriculture, Environment, and General Government; and Rules committees.

Define ‘PIP’

Personal injury protection (PIP) is a type of car insurance that pays medical expenses, lost wages, and other costs of drivers and passengers injured in automobile accidents, regardless of who caused the accident.

Florida drivers are required to carry $10,000 in PIP coverage on their insurance policies under Florida’s no-fault automobile insurance system, plus $10,000 in property damage liability coverage. Those are minimum requirements and drivers can, and do, purchase additional coverage.

According to the Department of Highway Safety and Motor Vehicles, just under 6% of the drivers on Florida roads were uninsured as of February.

The state’s no-fault automobile insurance laws ban injured parties from bringing lawsuits against at-fault parties to recover noneconomic damages, such as pain and suffering and loss of consortium, although there are some exceptions (if a person suffers a permanent loss of an important bodily function; a permanent injury; a permanent scar or disfigurement; or death).

The Florida Justice Association, representing the trial bar, supports PIP repeal and notes that a Forbes analysis of automobile insurance rates pegs Florida as the most expensive state for car insurance in the nation. To meet the requirements of the law costs an average $1,529 annually.

Lobbying surge

A cadre of insurance lobbyists oppose the repeal, as does Florida Justice Reform Institute President William Large. They argue lawmakers should allow the state’s no-fault laws and PIP to remain in place for at least another three years to ascertain the effect the elimination of one-way attorney fees will have on rates going forward.

Since 1893, state law allowed policyholders to force carriers to pay any attorney fees they rack up if forced to sue to enforce claims — hence “one-way” fees. The idea was to counterbalance insurers’ financial and legal clout. In 2023, the Legislature required both parties to pay for their own attorneys’ fees.

The Legislature agreed in 2021 to repeal the no-fault system and the minimum mandated coverages and return to a fault-based system, but DeSantis vetoed the bill (SB 54). In his veto letter, DeSantis stated at the time that although the “PIP system has flaws,” repeal could bring unintended consequences for the market and the consumer.

Perez, who was vice chair of the House Judiciary Committee at the time, voted for the repeal.

Note: This story has been updated to correct the name of the House bill sponsor.

Florida Justice Reform Institute

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