St. Pete think tank drives auto insurance reform 

Florida’s auto insurance laws date back to 1971, when the average cost of a new car was $3,900 and a gallon of gas was under 40 cents. 

Floridians now pay nearly $29 billion annually for auto insurance, the highest per-vehicle rate in the nation. A St. Petersburg-based research institute has outlined how soaring costs disproportionately affect responsible drivers. 

The Florida Policy Project’s (FPP) latest report found that 20% of motorists lack any insurance. Former senator Jeff Brandes, founder of the think tank, said another “25% or more” take advantage of the state’s low minimum legal requirements. 

“You basically have a 50-50 shot of getting hit by somebody who either has no insurance or doesn’t have enough,” Brandes told the Catalyst. “We really haven’t changed Florida’s auto insurance laws since 1971, and even the 1971 law is not adjusted for inflation.”

The FPP enlisted a nationally recognized expert from the University of Alabama, Dr. Lars Powell, to compile the “Best Practices for Automobile Insurance in Florida.” On average, drivers pay nearly $2,400 annually for coverage, which far surpasses the national average of roughly $1,700. 

The report notes that 80% of motorists must shoulder 100% of the costs, which exacerbates affordability issues. Brandes said the outdated system penalizes responsible drivers. 

Florida requires drivers to have at least $10,000 in personal injury protection and $10,000 in property damage. “They can’t even cover the average accident in America, which is $23,000,” Brandes said. 

Former Sen. Jeff Brandes, president of the Florida Policy Project.

In a recent op-ed, the former state lawmaker compared the situation to dining at a restaurant where 20% of adult guests leave without paying their bill, and another 25% ordered off the kids’ menu. The manager then spreads the shortfall across those who ordered responsibly. 

“If you don’t have $20,000 in coverage, you can’t even get to the ER,” Brandes said. Drivers must purchase uninsured motorist coverage, “for good reason,” and still often fight with their carrier to receive payment. 

Brandes, a St. Petersburg native, also noted it is significantly cheaper to break the law than to pay for coverage. While an uninsured motorist faces a $150 fine when stopped by police, they could pay for a new policy later that day, show proof in court and “drop it again.” 

Florida is one of 15 states that continues using a “no-fault” Personal Injury Protection (PIP) system. The state has the lowest minimum liability limits in the nation. 

FPP’s report states that “the optimal amount of coverage is not obvious” due to associated tradeoffs. An increase will lead to additional premium costs, potentially leading to more uninsured drivers. However, the number of underinsured drivers would decrease. 

Brandes commissioned a study by Pinnacle Actuarial Resources in 2016 as a legislator. The firm projected a 5.6% to 8.1% drop in premiums if Florida eliminated PIP and instead required bodily injury coverage. 

FPP recommends encouraging traffic-calming infrastructure, like roundabouts, to reduce crash frequency and severity. The report also advocates for technology-based enforcement tools, such as license plate readers, and legal reform to reduce litigation costs that contribute to high premiums. 

“I don’t think they’re doing anything locally on this,” Brandes said. “I think this is a glaring problem in Florida. They could step up enforcement, but frankly, people are just going to continue doing the same thing without the state putting in new measures. 

“It’s time to have a real conversation in Florida. Because clearly, what it was in 1971 is not the same as what it is today.” 

FPP has released reports regarding criminal justice reform, the affordable housing crisis, flood and property insurance and several other best practices for statewide issues since Brandes founded the nonprofit and non-partisan think tank in April 2023. He remains in frequent contact with legislators and said they would “absolutely” consider the latest research. 

For example, lawmakers allocated funding for automated traffic signals following an FPP report in 2024. “I think we have as much or more impact than virtually any other nonprofit in the State of Florida, because we’re talking about issues that are important and … we don’t take a Republican or Democrat perspective,” Brandes said. 

“We just say what works best in the country,” he added. “I think what this does is serve as a catalyst for discussion.”

To view the full report, visit the website here.