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Senate Bill 54 Could Change the Dynamics of Florida Auto Insurance
Tampa Car Accident Lawyer Fighting For You
In a 2021 legislative session, Florida lawmakers passed Senate Bill 54 (SB54), which could make significant changes to the state’s auto insurance market, and could have far-reaching implications for drivers — especially those who have been injured in car accidents and have to secure damages to cover their losses.
Let’s take a closer look at SB54 and its potential impact.
The Purpose of Senate Bill 54
Florida’s SB54 is intended to repeal the no-fault personal injury protection (PIP) system and replace it with mandatory bodily injury coverage. Proponents of SB54 have long argued that the 1970s implementation of the PIP system — which sets the minimum and maximum coverage at $10,000 — is simply inadequate as of 2021. By contrast, SB54 implements mandatory bodily injury coverage for drivers starting at $25,000. This will ensure that injured drivers can secure damages in situations where they may not otherwise be able to prove that the defendant is liable.
Potential Implications of Senate Bill 54
Critics of SB54 hope that Governor DeSantis will veto the bill. They argue that there are far-reaching and concerning implications for SB54 and that these will have undesirable impacts on driver outcomes.
First, there is concern that SB54 will raise rates for all insured drivers — with some industry critics expressing concern that rates could increase up to 40 percent. As Florida already has some of the highest rates in the country, there is a belief that this rate increase could lead to more uninsured drivers, thus leaving drivers with even less recourse in the event of an injury-causing accident.
As a counter, however, proponents of SB54 argue that the broader coverage will allow for a full recovery in more scenarios. For example, under the current PIP regime, a driver who sustains $20,000 in damages may only recover a maximum of $10,000 through PIP. Assuming that SB54 goes through, that same driver would be entitled to recover all $20,000 thanks to the higher minimum coverage amount.
Contact Alley Clark & Greiwe for Assistance
Here at Alley, Clark & Greiwe, our attorneys have decades of experience representing car accident plaintiffs with a variety of claims, from incidents involving uninsured drivers to complicated multi-car pileups. We are committed to thorough advocacy — from start to finish, we invest the time, resources, and attention necessary to fully understand your case and secure a favorable outcome.
If Senate Bill 54 is passed, it’s possible that Florida will see a rise in uninsured drivers, which could impact how a car accident dispute can — and should — be litigated. We encourage you to get in touch with a qualified attorney at our firm for guidance.