Stephanie Smith: Florida Senate should vote to fix auto insurance laws
Rear-side view of a luxury car on sunset

Rear-side view of car

Floridians are blessed with a low cost of living.

When comparing the cost of housing, utilities, transportation, health, or the overall cost of living, Florida is lower than the U.S. average.

Why, then, is Florida ranked among the five most expensive states for car insurance?

The answer is, in part, because of a broken statutory system that does not require the purchase of third-party bodily injury coverage (BI) but does require the purchase of Personal Injury Protection (PIP) coverage laden with high costs and pervasive fraud.

Florida is the only state that does not require drivers to purchase BI coverage when they buy auto insurance to satisfy financial responsibility requirements.

The point of financial responsibility is to guarantee that all drivers on the public roadways have a minimum amount of security to pay damages that they cause to others.  Florida has set that minimum financial responsibility at $10,000 per person and $20,000 per accident for bodily injury.  The statutes permit the sale of auto insurance policies that do not satisfy this requirement, which results in a staggering number of drivers on the road without adequate insurance as compared to other states.

In 2015, Florida ranked first in percentage of uninsured motorists at 27 percent, more than double our neighbor Georgia, which is near the average at 12 percent.

PIP is a vestige of the 1970s insurance reform movement that has failed to accomplish what the academics who dreamed it up believed it would do. The goal of PIP was to eliminate lawsuits over minor injuries and lower overall auto insurance rates.

The reality is PIP continues to be a cottage industry devoted to extracting money from insurers, even when there is no merit to the claims.

After an initial wave of PIP laws in the 1970s, no state has enacted a no-fault system like PIP again, and several states have wisely abandoned PIP due to the cost and the fraud inherent in the system. Lawmakers in those states came to understand that an auto insurance system is healthier when it relies on common law tort principles rather than the derogation of common law rights in favor of a no-fault scheme.

Uber supports a public policy that lowers the number of uninsured and underinsured motorists on the road.

Through statute and through our business practices, we guarantee that the over 100,000 drivers partnering with Uber in Florida are insured while using our app. Those hard-working drivers deserve to see their personal auto insurance costs go down and to see more of their fellow Floridians properly insured.

The Florida House has already passed HB 19 by Rep. Erin Grall. This bill repeals PIP and requires the purchase of BI coverage at a limit commensurate with average amounts across the country.

If enacted, this bill would make our public roadways safer and would lower premiums for the average Floridian statewide by more than 8 percent for mandatory coverage.

We applaud Rep. Grall and the Florida House for their good work, and we urge the Florida Senate to act on this issue.


Stephanie Smith is Uber Florida’s Senior Public Policy Manager.

Guest Author


  • Bill Newton

    February 26, 2018 at 2:58 pm

    Suggesting that Floridians don’t have bodily injury coverage when they are required to buy PIP, which is a form of bodily injury coverage, is kind of a stretch. PIP has benefits for consumers. First, you’re paying for $10,000 or your own coverage, so you know that if you’re hurt you’re covered, no questions asked. The doc and the hospital know you’re covered too. No lawsuits, just covered. I suggest you pay for the additional options in PIP too, no deductible, loss of income, and cover others in your car.

    We do have PIP fraud, but additional dedicated prosecutors and investigators have helped drive the staged accident rings out of the state. We need more. Don’t let criminals win, put them in prison. These are often complex prosecutions and sophisticated criminals. They cost us all. But the answer is not taking away our benefits.

    Florida has too many uninsured drivers, but increasing the limits and driving up rates will just mean more uninsured. In Florida, driving is often essential to get to work or school. There is no alternative. So people drive without insurance if they have to. We need alternatives.

    The ‘everbody sue everybody” plan could lead to more problems. We don’t see doctors and trauma centers clamoring for more lawsuits. That’s because with PIP, they get paid. With lawsuits, they will be forced to roll the dice along with everyone else.

    Florida need lower cost insurance. One way would be lowering rates for low and moderate income good drivers. Drivers with clean records that can’t afford luxury insurance should have a basic alternative available for a reasonable cost.

  • Brian

    February 27, 2018 at 3:00 pm

    The writer of this article might want to consider this fact: Colorado is the last state to get rid of PIP and go to at fault. They also have the third highest rise in car insurance rates last year. So.. stating rates will definitely go down is clearly not paying attention to what MIGHT in fact happen…

Comments are closed.


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