Florida PIP Repeal: Impact on Commercial Auto

Florida has required Personal Injury Protection (PIP) coverage since 1971. Under this no-fault system, every vehicle owner — personal or commercial — carries at least $10,000 in PIP, which pays 80% of medical expenses regardless of who caused the accident. That system ends on July 1, 2026.

The Florida Legislature passed Senate Bill 54, which repeals the Motor Vehicle No-Fault Law entirely. In its place, Florida is adopting a traditional at-fault (tort-based) system. The person who causes the accident is now financially responsible for the damages. This is how most other states already operate — but for Florida businesses, it's a fundamental shift in how commercial auto claims will work.

Under the new law, Florida drivers and fleet operators must carry bodily injury liability coverage with minimum limits of $25,000 per person and $50,000 per accident, plus $10,000 in property damage liability. This replaces the old requirement of $10,000 PIP plus $10,000 property damage.

For most commercial operations, these minimums are far too low. A single serious accident involving a commercial vehicle can generate claims well into six or seven figures. If your fleet policy is currently written at state minimums, this is the time to reassess. risk | x typically recommends commercial auto limits of at least $1M combined single limit, with an umbrella or excess policy on top for operations with multiple vehicles or high-exposure routes.

Under the current PIP system, if one of your drivers is involved in an accident, each party's own PIP coverage kicks in immediately to cover medical expenses — no fault determination required. That speed goes away under the new system. After July 1, 2026, the injured party must file a claim against the at-fault driver's liability insurance. This means fault must be established before the other party's insurer pays.

For fleet operators, this has several practical implications. First, expect longer claim resolution timelines. Insurance companies will investigate fault more thoroughly before paying, which means more adjuster involvement and potentially more litigation. Second, if your driver is at fault, your commercial auto policy's bodily injury liability coverage is the primary payment source — not the injured party's own PIP. Third, if the other driver is at fault but uninsured (Florida has roughly a 20% uninsured driver rate), your driver's recovery depends on whether you carry uninsured/underinsured motorist (UM/UIM) coverage.

Uninsured and underinsured motorist coverage has always been important in Florida, but after the PIP repeal it becomes essential. Here's why: under the current system, PIP provides a baseline of medical coverage regardless of the other driver's insurance status. Once PIP is gone, if an uninsured driver hits your employee's commercial vehicle, there's no automatic coverage for your employee's injuries unless you carry UM/UIM on your commercial auto policy.

Florida's uninsured driver rate hovers around 20% — one of the highest in the nation. In practical terms, roughly one in five drivers your fleet encounters on Florida roads has no bodily injury coverage. Without UM/UIM on your policy, your employee's medical bills fall to workers' compensation (if the injury qualifies) or their personal health insurance. Neither is a clean solution. risk | x recommends UM/UIM limits that match your liability limits — if you carry $1M in liability, carry $1M in UM/UIM.

Florida requires workers' compensation for construction businesses with one or more employees and non-construction businesses with four or more employees. When an employee is injured in a commercial vehicle accident while working, both workers' comp and commercial auto may be in play. Under the current PIP system, PIP pays first for medical expenses. After the repeal, the coordination between workers' comp and commercial auto liability becomes more complex.

If your employee is at fault, workers' comp covers their medical expenses and lost wages (as it does for any on-the-job injury), while your commercial auto liability covers the other party's damages. If the other driver is at fault, your employee can pursue a third-party liability claim against that driver — but the timeline and recovery depend on the other driver's coverage. Having strong UM/UIM coverage on your commercial auto policy ensures your employee isn't left waiting for a settlement while medical bills pile up.

First, review your current commercial auto policy limits. If you're anywhere near state minimums, increase them. The new 25/50/10 minimums are a floor, not a recommendation. For commercial operations, they're dangerously low. Second, add or increase UM/UIM coverage to match your liability limits. This is the single most important coverage change you can make before the transition.

Third, coordinate with your workers' comp carrier. Make sure your policies don't have gaps in how employee vehicle injuries are handled. Fourth, if you operate in multiple states, review how Florida's change interacts with your other state coverages — your commercial auto policy may need state-specific endorsements. Finally, don't wait until June. Carriers will be processing a wave of policy changes as the deadline approaches. Get ahead of it now.

Text risk | x to get a full review of your Florida commercial auto coverage. We'll identify gaps, recommend appropriate limits, and make sure your fleet is ready for the July 1 transition — no forms, no portals, just a text.