Drivers to Face New Car Insurance Laws

November 7, 2025

Florida legislators recently approved changing its auto insurance system from "no-fault" to "at-fault," so let's take a look at why. Among the reasons given were to better manage skyrocketing Florida auto insurance costs and widespread fraud linked to the state’s PIP system. On the other hand, Personal Injury Protection did pay most medical claims more quickly and regardless of who caused the vehicular accident.

Lawmakers felt the state’s no-fault system simply did not hold bad drivers accountable. Thus, by switching to an at-fault system, the hope is to lower costs for consumers while ensuring negligent drivers are held responsible. Starting July 1, 2026, Florida's car insurance landscape is set for a major transformation. The state will transition from its current "no-fault" system to a "tort" or "at-fault" framework. This change means that Personal Injury Protection (PIP) coverage will be replaced with mandatory Bodily Injury (BI) liability coverage.

Drivers in the Sunshine State would be required to carry minimum bodily injury liability coverage of $25,000 per person and $50,000 per accident, in addition to $5,000 in medical payment (MedPay) coverage. If these changes are enacted next summer, almost everyone’s Florida auto insurance policy will need to be updated to meet the new requirements. For now, there are no immediate actions needed on your part, but by April 1, 2026, your insurance company will contact you to explain these upcoming changes.

Auto policies will be automatically updated to meet the new requirements upon renewal after July 1, 2026. At that time, the adjustment made might affect your premium, causing it to either increase or decrease depending on the cost of “at-fault” coverage and your specific needs. After that, while your claim is being processed, your personal health insurance policy will likely need to cover any immediate medical expenses. So now is a good time to contact your provider as the effective date is getting closer to confirm the details of your new coverage.

Is bodily injury liability mandatory in Florida?

No, bodily injury liability insurance is not currently mandatory for most drivers in Florida. Currently, most drivers only need a minimum of $10,000 in Personal Injury Protection and $10,000 in Property Damage Liability to register a vehicle. Nonetheless, there are a few exceptions. For example, drivers convicted of a DUI and those who operate commercial vehicles like taxis are required to carry BI. While not yet required for everyone, some do carry BI to protect personal assets should they be at fault for an accident where medical costs exceed PIP minimums. After all, both the driver’s license and car registration could be suspended if they are at-fault and don’t have enough insurance to cover court-ordered damages.

Car Insurance Changes for 2026

So, what does this mean for you? For starters, now it is a good idea to speak with your insurance agent to understand how your policy will be updated to meet the new state requirements. But be prepared for potential changes in rates, as this shift could affect costs for some drivers. Make sure your policy includes the new mandatory coverage of at least $25,000 per person for bodily injury and $50,000 per accident. To be safe, you might also consider adding coverage to protect yourself in case you're in an accident with a driver who has little to no insurance.

System shifts to "at-fault":Under the state’s new "at-fault" system, the driver who causes an accident is responsible for paying for the other party's damages and injuries. So, if you are at fault, your bodily injury coverage will be the primary source for payment of these costs. This is a shift from the current system, where your own Personal Injury Protection (PIP) pays first, regardless of who caused the accident.
PIP is replaced:All drivers in Sunshine State need to take note of the changes to Florida auto insurance rules that will be enacted in July of next year, which is now single-digit months in the future. The state has approved legislation that will repeal the current PIP insurance requirement for personal injury protection regardless of who’s at-fault. Instead, you'll be required to carry Bodily Injury coverage to register your vehicle.
Bodily injury coverage becomes mandatory:After the new Florida auto insurance laws are enacted in July of 2026, it is your bodily injury liability insurance coverage that pays the bills if you are determined to be at fault in an accident. It's important to remember that your personal health insurance will usually need to cover your own medical bills while the claim is being processed and fault is determined.
MedPay coverage is required:MedPay, or Medical Payments coverage, is an additional insurance that helps cover medical expenses for you and your passengers after an accident, no matter who is at fault. It acts as a safety net for immediate medical needs, including costs your primary health insurance might not cover, like deductibles and co-pays, but it's important to note that MedPay does not typically reimburse non-medical costs.
Underinsured motorists may be needed: With nearly one in four drivers on Florida roadways being underinsured and the potential for more uninsured drivers under the new at-fault system, obtaining UM coverage helps protect you from damages caused by drivers without sufficient insurance. UM is a also vital safety net that provides protection for medical bills, lost wages, and other damages if a driver flees the scene following a hit-and-run.
Property damage liability remains unchanged:Florida will continue to require a minimum of $10,000 in PDL auto insurance in 2026. This decision stems from concerns that repealing the state's no-fault system may lead to higher insurance premiums and more uninsured drivers. PDL coverage is a core part of liability law, that ensures drivers are financially responsible for damages they cause to another person's property.

Despite past attempts to move to a fault-based system with mandatory bodily injury coverage, previous legislative changes were vetoed by Governor DeSantis due to concerns about their potential impact on the insurance market and consumers. So, Florida's legislators have struggled to find the right balance of consumer costs, adequate coverage, and market stability, especially since the state's insurance market was already facing significant hurdles.

Reconciling Florida’s Shift in Auto Insurance

Florida's no-fault insurance is scheduled to get a major overhaul, as state statutes have repealed its PIP insurance system, a change that will significantly impact how drivers are insured and how reimbursement for damages are made. Under the new law, the at-fault driver's bodily injury insurance will be the primary source for covering medical injuries, a shift intended to create an overall more equitable auto insurance system.

Right now, the existing requirement of $10,000 in property damage liability (PDL) will remain unchanged and included in the new at-fault minimums. But, auto insurance companies doing business in the state must notify all policyholders of these upcoming changes by April 1, 2026. Then starting July 1, 2026, Florida drivers will be required to have a minimum of $25,00- in bodily injury liability coverage per person and $50,000 per incident to register and operate a vehicle.

The scheduled restructuring of Florida’s no-fault auto insurance status is not, however, without its challenges. Fact is the Sunshine State’s insurance market is already facing instability, and such a significant change is seen as a major risk by some of those involved in implementing the new law. To help manage the transition, new deadlines and damage caps for claims are already being introduced, alongside ongoing reforms aimed at stabilizing its insurance market.

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With Florida’s new auto insurance reforms as well as new insurers entering the market, it's a good time to take a closer look to shop around for quotes to find the best rate. Plus, it is important to remember that the new law doesn’t allow injured parties to receive the immediate medical benefits like PIP insurance did, as injured parties may have to wait for fault to be determined. At Affordable Auto Insurance Jacksonville, our independent agents understand the challenges you face and have access to carriers that may have the most competitive rates to cover your unique risks. Contact us today to get the ball rolling and start saving money with AAI’s latest Florida auto insurance solutions.