Does Mandatory PIP Insurance Disappear in 2026?
November 3, 2025
Florida's auto insurance landscape is about to undergo a major transformation. New legislation will eliminate the state's long-standing Personal Injury Protection (PIP) and transition to a traditional fault-based insurance model in July 2026.
This shift will bring opportunities and challenges for Florida drivers, who may experience changes in insurance premiums and medical treatment access as well as a loss of protection against under-insured motorists.
For more than four decades, the Sunshine State has operated under a no-fault insurance framework. Under this system, drivers rely on their own PIP coverage to pay for medical bills and lost wages after an accident, and regardless of who was at fault. The system was designed to speed up compensation and reduce court congestion by covering up to 80% of medical expenses and 60% of lost wages. But despite legislator’s intentions, PIP became notorious for insurance fraud.
Currently, Florida is one of only two states that still require mandatory no-fault coverage. Lawmakers have concluded that the current system is no longer sustainable and have decided to pursue a major overhaul. The existing framework pays for immediate medical care but limits victims' ability to sue for full damages. Starting in July 2026, it will be replaced by traditional at-fault liability coverage. But, the transition won't happen overnight, and its full impact remains uncertain.
While recent reforms have delivered some rate reductions, the long-term effects of the 2026 changes are still unclear. Drivers who carry only minimum PIP coverage may face higher costs due to mandatory bodily injury liability requirements per accident. However, some might see lower premiums if the elimination of PIP-related fraud offsets increases in bodily injury coverage costs. Under the new legislation, insurer’s cannot offer PIP but can still provide MedPay coverage to help with medical expenses.
Fundamental shift in how auto insurance works...
Florida's auto insurance landscape is about to undergo a dramatic transformation in how auto insurance works throughout the Sunshine State. Currently, Florida drivers carry $10,000 in PIP coverage, which means your own insurance company covers your medical expenses regardless of who caused the crash. This system is about to disappear entirely. Under the new fault-based model, the at-fault driver's insurance will become the primary source for covering all damages, including medical bills and lost wages for injured parties. This isn't just a minor policy adjustment; it's a complete overhaul of Florida's insurance philosophy. Drivers will need to reassess their coverage needs and understand their expanded liability exposure, as this shift will not immediately fix all of the problems.
History of Florida PIP Law Changes
Since 1979, PIP insurance sits at the center of Florida's unique no-fault system. This coverage acts as a financial safety net during the crucial weeks following a car accident. Florida has maintained this system to ensure accident victims receive prompt medical care without waiting for insurance companies to determine fault. Florida remains one of the few no-fault states in the country, which means your insurance covers your injuries first, regardless of who caused the accident. But, temporary disabilities do not qualify to sue the at-fault driver for “serious injury.”
The 2021 legislative session appeared to mark a turning point for PIP reform. Senate Bill 54 passed both chambers with strong bipartisan support, proposing to eliminate mandatory PIP coverage entirely. The bill required drivers to carry $25,000 in bodily injury coverage per person and $50,000 per accident, plus optional Medical Payment coverage of $5,000. Reform supporters believed this approach would hold at-fault drivers accountable; however, Governor DeSantis surprised many in Tallahassee by vetoing SB 54.
Reform advocates persisted after the SB 54 veto. By March 2023, new legislation emerged with SB 586 in the Florida Senate and HB 429 in the Florida House. This latest effort incorporated lessons learned from the previous attempt. Lawmakers addressed the governor's previous concerns while maintaining their core goal of creating direct accountability. With its transition period, Florida appears ready to join the majority of states that hold at-fault drivers responsible for the injuries they cause, while ensuring accident victims maintain access to adequate coverage.
Challenges to New Florida Auto Insurance Laws
Florida's auto insurance landscape is undergoing a significant transformation, where Personal Injury Protection coverage is eliminated and drivers will be required to carry Bodily Injury liability coverage. The current $10,000 Property Damage Liability requirement will remain unchanged, continuing to protect you against damage to others' vehicles or property. This shift represents a fundamental change, however, the transition presents several challenges that drivers need to understand, such as:
- Potential Premium Increases – Though reforms are intended to lower overall costs, drivers will be required to purchase higher levels of bodily injury liability, which may lead to premium increases for certain drivers.
- Delays in Medical Reimbursement – Under the existing no-fault, PIP pays for immediate medical expenses regardless of fault. But, under an at-fault system, it may be necessary to determine who is at fault first.
- Risk from Uninsured Motorists – Florida is known to have high rates of uninsured or underinsured motorists. Under fault-based coverage, the injured party must sue or rely on their own uninsured motorist insurance.
- More Complex Claims Process – An at-fault system often leads to an increase in disputes and legal actions between insurance carriers and drivers in determining the compensation needed to settle complex claims.
- Higher Probability of Lawsuits – With the elimination of PIP that limited the ability to sue for minor injuries, there may be an increase in overall lawsuits needed for compensation from insurers, or through the courts.
- Need for Additional Coverage – Without personal injury protection, people will likely need to purchase optional coverages like uninsured motorists and medical payments (MedPay) to cover expenses after any accident.
These are significant changes from the current Personal Injury Protection required for no-fault insurance coverage. Moreover, premium costs based on the state’s change to requiring mandatory bodily injury liability for larger amounts under an at-fault auto insurance policy is still unknown. While some insurance analysts predict rates will naturally go up, others believe they will go down, especially for better drivers. Ultimately, the actual cost will vary the most based on your personal situation and the coverage you select.
Time Sensitive Deadlines After July 2026
With the State of Florida scheduled to transition to a fault-based auto insurance system in July 2026, there are several new challenges that drivers in the Sunshine State must be ready to face. As is the case with at-fault determination, the most important deal with reimbursement for medical coverage relates to the claims process and the potential for greater cost fluctuations. Generally speaking, Florida drivers will need to be proactive in securing adequate coverage as well as being prepared for more adversarial claims that require proving fault.
- Proof of Fault: At-fault auto insurance requires investigating evidence like police reports, witness statements, physical evidence, and photos or videos of the accident. Adjusters analyze this against traffic laws to determine negligence.
- Loss of Immediate Medical Benefits: Once PIP insurance is replaced, drivers will no longer have immediate medical coverage paid for by their carrier. This shift will increase the lawsuits as fault must be proved in order to recover damages.
- Slower Medical Payments: Since medical providers face longer payment timelines due to navigating third-party liability claims rather than receiving quicker PIP payments, it could create problems receiving timely less-essential medical treatments.
- High Uninsured Motorist Rate: Florida’s uninsured motorists for 2025 is estimated around 15-20% of Sunshine State drivers. More expensive bodily injury coverage may increase the state’s rate of underinsured drivers under a fault-based system.
- Premium Fluctuations: While recent statutory insurance reforms have led to current rate reductions and refunds, that will end next summer. So, low-income drivers who previously carried PIP/PDL minimums could definitely see an increase in premiums.
As Florida prepares for this significant transition, understanding these changes becomes essential for all drivers in the state. The shift to a fault-based system represents a fundamental change in how accident victims recover compensation and how insurance companies handle claims. Since the effect on insurance costs is still a topic of much debate, it is highly recommended that drivers speak with their insurance agents throughout 2025 and early 2026 to make sure they have the right coverage to handle these new risks.
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While two recent bills (HB 1181 and SB 1256) have advanced in the Florida Legislature in the 2025 session, they have not yet been signed into law by Governor Ron DeSantis. A similar bill was vetoed in 2021 due to concerns about potential premium increases and increased litigation, so the final outcome of the 2025 legislation remains uncertain. Insurers would be required to notify policyholders by April 1, 2026, about these changes, including that PIP will no longer be available for purchase (or renewal) after July 1, 2026. At Nsurance Nation, our experienced staff can help you decide whether GEICO, Progressive, or a carrier you haven’t even considered has the insurance policy that works best based on your unique circumstances. Call 1-833-450-9490 to speak with an agent today.
