Here’s the Scoop on the New Changes to Florida’s Insurance Laws

Florida drivers should be ready for a significant insurance change on January 1, 2022. In April, the Florida House of Representatives voted 99-11 to repeal the state’s “no-fault” laws and will now require every motorist to have bodily injury coverage. These new 2021 Florida insurance laws are the biggest updates to Florida’s insurance policies in 50 years. Keep reading to learn a bit more about these changes.

Why are these changes being made?

As you probably know, Florida has some sky-high insurance rates. In fact, they’re some of the highest in the country. The reason that rates are so high here is that an estimated 5 percent of drivers don’t have any insurance at all, which is the highest rate of uninsured drivers in the nation. Many of these drivers attribute their lack of insurance to Florida’s high insurances premiums.

Because there are so many uninsured drivers out there, insurance companies must raise premiums for the drivers who do carry adequate coverage. The no-fault provision—which requires each motorist to carry $10,000 in personal injury coverage to cover medical and funeral costs regardless of who’s at fault—is also a reason for the higher rates.

Getting rid of this no-fault position may help reduce rates for some of Florida’s motorists, but as we’ll see below, that might not be the case for everyone.

What is the new minimum insurance law?

The newest Florida insurance updates will require motorists to carry $25,000 in bodily injury coverage for the injury or death of one person and $50,000 in coverage for two people. Under this new law, insurance will pay out regardless of who’s at fault.

Will my rates increase or decrease?

If the goal is to lower insurance rates, won’t that be beneficial for every driver on the road? Not necessarily. Most drivers already carry $25,000 and $50,000 in coverage—those motorists should see a decrease of about 5 percent in their monthly premium under the new 2021 Florida insurance laws.

But it’s estimated that 35 to 45 percent of Floridians don’t carry that much coverage right now—these drivers will likely see their rates increase. A study performed in 2018 showed a potential average increase of $67 per month.

While $67 doesn’t sound that bad, it may be a good idea to start looking for some other insurance options.

Where can I get affordable car insurance?

Even if your current insurance is going up due to the changing laws, that doesn’t mean you can’t shop around to find a lower rate. At Affordable Car Insurance Tampa, we specialize in helping our customers get the best possible rates for complete coverage.

It doesn’t matter if you’re a teen driver or you have a terrible driving record—our team can work with you to get the insurance coverage you need at a price you can afford.

Contact us right away!

The clock is ticking, and the Florida insurance updates will go into effect sooner than you think. Give our team a call today to get your new insurance quote. It takes less than 10 minutes and can save you big bucks.

Byron Johnson Blog Icon By: Byron Johnson