No-Fault Auto Insurance Loss Means Big Cuts

With the state’s no-fault auto insurance law about to expire, some are excited and some are not. Those with car insurance are excited at the possibility of their car insurance rates going down, but lawmakers say that it could start to get tough for the budget.

Lawmakers say that without no-fault auto insurance, the state agency that oversees driver’s license offices and state troopers, could be looking at some big cuts. They have allotted $25 million on the back end of the budget to try and keep those offices open and troopers on the road.

They say that without no-fault, many motorists that currently do not have car insurance will probably be able to afford it now that the prices are dropping. This would seem like a good thing, less uninsured drivers, but all of those drivers that don’t have auto insurance pay the state a fine for reinstating their licenses. That fine pays for the license offices and for the Florida State Highway Patrol.

But as of October 1st, Florida drivers will no longer have to carry PIP as part of their auto insurance, and the provision that requires the auto insurance companies to report those without car insurance to the state is no longer valid either. Some say that many residents won’t need to have car insurance at all, although major auto insurance companies say that that is not the case.

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