Law Gives Fla. Car Insurers More Time to Cancel Certain Policies

Florida drivers who buy coverage to get their driving privileges back after a DUI or lapse in coverage will soon face a longer period when their insurer can cancel the policy.

Currently, Florida car insurers have only a 30-day “underwriting period” during which they can cancel such policies. But, starting July 1, that period will extend to 60 days.

The new rules were proposed under legislation called SB 490. It applies only to drivers who are buying coverage to reinstate their licenses after being revoked or suspended because of a DUI or failure to maintain car insurance coverage.

“This will allow insurers additional time to properly complete underwriting,” according to a legislative analysis of the bill, which was signed into law by Gov. Rick Scott on Friday.

Another change applied by the bill allows drivers with these policies to change their amounts of bodily injury, property damage and personal injury protection coverage after the underwriting period. Previously, drivers couldn’t change their coverage amounts on a policy without canceling their current policy and obtaining a new one.

The bill saw strong support during its route through state Senate and House, where in April it got votes of 38-0 and 116-0, respectively.

About Charles Nguyen
Charles Nguyen is an enterprising journalist who reported for Patch.com and the Desert Dispatch and was the editor in chief of the Guardian (the twice-weekly newspaper at the University of California, San Diego) before coming to Online Auto Insurance News.

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