Florida's Double Auto Insurance Policy Rules

In Florida, it is perfectly legal to have two auto insurance policies for the same vehicle. However, it is not recommended as it can lead to confusion and delayed or unpaid claims. Florida law requires a minimum of $10,000 in personal injury protection and property damage liability coverage. This means that in the event of an accident, each driver's insurance covers injuries or medical expenses for themselves and their passengers, regardless of who is at fault.

Florida's minimum insurance requirements

Personal Injury Protection (PIP)

This covers 80% of all necessary and reasonable medical expenses up to a minimum of $10,000 resulting from a covered injury, no matter who caused the crash. PIP insurance is often called no-fault coverage because it covers and pays out claims on accidents regardless of who is at fault. It also covers lost wages and can be used to defend yourself against minor lawsuits that require additional funds to pay for damages if you’re held responsible.

Property Damage Liability (PDL)

This pays for damage to another person’s property caused by you or someone else driving your insured vehicle. In Florida, the minimum PDL coverage needed to drive is $10,000. This means that your insurance company may pay up to a maximum of $10,000 for property damage you cause in a single accident, even if multiple cars or properties are involved.

Any vehicle with a current Florida registration must be insured with PIP and PDL insurance at the time of vehicle registration and have continuous coverage even if the vehicle is not being driven or is inoperable.

Other Requirements

You must purchase the policy from an insurance carrier licensed to do business in Florida. If you are new to the state, you may ask your agent to transfer your current insurance to a Florida policy.

You must also maintain Florida insurance coverage continuously throughout the registration period, regardless of the vehicle’s location. If you are a military member stationed out-of-state or in another country, you may be exempt.

If you are a non-resident, you must obtain a Florida registration and license plate and insure your vehicle with a Florida policy if you accept employment or engage in a trade, profession, or occupation in Florida, or enrol your children in a Florida public school. You must obtain the registration certificate and license plate within 10 days.

Failure to Abide by the Minimum Insurance Requirements

Failure to maintain the required insurance coverage in Florida may result in the suspension of your driver's license and registration and a requirement to pay a reinstatement fee of up to $500.

Is it legal to have two auto insurance policies?

It is perfectly legal to have two auto insurance policies for the same vehicle. However, it is not recommended. Double-insuring a car may violate the policies of one or both of your insurers. Additionally, if one of your insurers knows that you have another policy on the same car, they may ask the other insurer to pay your claims in the future, which can result in delayed or unpaid claims.

Florida's Auto Insurance Requirements

Florida requires drivers to meet minimum auto insurance requirements to register a vehicle in the state. Before you can register a car in Florida, you need a minimum of $10,000 in both personal injury protection and property damage liability coverage. Florida is also a no-fault state, which means that each driver's insurance covers injuries or medical expenses for themselves and their passengers, regardless of who is at fault.

Disadvantages of Double Coverage

When you own a car with someone, and you each buy auto insurance for that car, double coverage occurs. If you're both covered under a single policy, there's nothing to worry about. However, if you purchase a policy from one company and your co-owner has a policy with a different company for the same car, confusion can arise.

The problem with having double coverage is that it can be difficult to determine whose insurance company should pay for damages in the event of an accident. If you have double coverage and you rent a vehicle, it's clear that your car insurance provider will pay for everything if you get involved in an accident. However, if you co-own a vehicle and have two policies, it's not so clear-cut.

Filing Claims with Two Insurance Policies

Having two auto insurance policies is legal, but filing the same claim with two different insurers isn't. If you receive compensation from two insurance providers for the same claim, it's considered insurance fraud.

What are the disadvantages of double coverage?

While having double coverage on your car is not illegal in Florida, there are several disadvantages to this practice. Firstly, double coverage often leads to higher premiums without providing any extra benefits. You will be paying twice the premiums and will only be able to file a claim with one company in the event of an accident.

Secondly, having double coverage can cause confusion during the claims process, with each insurance company trying to push responsibility onto the other. Your two insurance companies will need to agree with one another about who will cover what part of the claim, which can dramatically extend the time it takes for you to receive a settlement.

Thirdly, your premium costs from both insurers will likely rise after a claim. In addition, you could lose any good driver discounts you had on both policies.

Furthermore, each insurance policy may require you to list all licensed members of the household, which can significantly increase your insurance costs, especially if you have young drivers in the household.

Finally, some insurance companies may view double insurance as a policy violation, and you may find yourself under investigation if you try to claim from both insurers after an accident.

Florida's no-fault insurance laws

Florida is one of the twelve states that operate under "no-fault" liability laws. This means that each person pays for their own accident expenses, regardless of who is at fault. Personal Injury Protection (PIP) is a mandatory endorsement to auto policies in Florida, and it takes priority in paying the insured after an accident. PIP covers 80% of medical bills, 60% of lost wages, and 100% of replacement service costs. The minimum limit for PIP in Florida is $10,000, and it must be purchased from an insurance carrier licensed to do business in the state.

Florida's no-fault law was first adopted in the 1970s but was dropped in 2007 on a technicality and immediately reenacted. The law has been subject to fraud, with scam artists, lawyers, doctors, and auto glass contractors exploiting its flaws. This has made Florida one of the least affordable states for car insurance. Despite this, insurers and other groups are in favour of keeping the no-fault system, as they believe the proposed alternative, Senate Bill 54, will be costly for drivers and do nothing to address injury or property damage fraud.

Under the current no-fault system, drivers are required to have a minimum of $10,000 in PIP and $10,000 in Property Damage Liability (PDL) insurance. PDL coverage pays for damage to another person's property caused by the insured or someone driving their vehicle. While Florida does not require drivers to carry Bodily Injury Liability (BIL) insurance, it is recommended by experts as it protects the driver if they are at fault in an accident that results in injuries or death.

In addition to the mandatory PIP and PDL coverage, Florida drivers may also want to consider optional coverages such as Collision and Comprehensive insurance. Collision insurance covers any damage received from an accident, while Comprehensive insurance covers auto theft, "acts of nature", and other accidents outside of vehicle collisions.

Recommended insurance coverage limits

Florida is a no-fault state, which means that each driver's insurance covers injuries or medical expenses for themselves and their passengers, regardless of who is at fault for the accident. Florida law requires drivers to have a minimum of $10,000 in personal injury protection (PIP) and $10,000 in property damage liability (PDL) coverage. PIP covers 80% of all necessary and reasonable medical expenses up to $10,000, no matter who caused the crash. PDL coverage pays for damage to another person's property caused by the policyholder or someone else driving their insured vehicle.

While Florida's minimum coverage limits are fairly low, drivers can purchase a policy with higher limits, and it is recommended to do so. With PIP insurance, this is important because you may be liable to pay out significant compensation to other parties for medical bills and other items if you cause a car accident that results in serious injuries or death. While PIP insurance helps to cover your medical costs, it's important to remember that PDL liability insurance only pays for damage to another person's property, not your own vehicle. Many drivers opt for a full-coverage policy, which includes collision and comprehensive coverage, to ensure their vehicle is fully protected from auto accident costs.

In addition to the minimum required coverages, there are several other types of optional coverage that Florida drivers may want to consider to ensure they are fully protected. These include:

• Bodily Injury Liability (BIL) Coverage: This type of coverage protects you if you are at fault in an accident and the other person is injured or killed. While Florida does not require BIL coverage, many experts recommend adding it to your policy. Even in a no-fault state, an injured party can sue you for damages if they are extensive or go beyond what your minimum insurance requirements cover. The recommended coverage limits for BIL are $100,000 per person and $300,000 per incident.
• Uninsured/Underinsured Motorist Coverage: This coverage comes into play when the at-fault driver has no BIL coverage or has low coverage amounts. In such cases, your uninsured/underinsured motorist coverage will provide liability insurance for the at-fault driver up to the limits of your policy. Given that a large percentage of Florida drivers have no BIL coverage or low coverage amounts, this type of coverage can provide important financial protection. The recommended coverage limit for uninsured/underinsured motorist coverage is as high as you can afford, but it may be limited by the amount of your BIL coverage.
• Collision Coverage: This coverage pays for damage to your own car in an accident, even if you are at fault or the at-fault driver is uninsured.
• Gap Coverage: This coverage protects you if your car is a total loss after an accident and you owe more on the vehicle than it is worth. Gap coverage will pay off the remaining balance.
• Extended Personal Injury Protection Coverage: The minimum required PIP coverage pays up to a combined maximum of $10,000. Extended PIP coverage can be purchased in higher amounts, and it is recommended to increase your PIP coverage to $50,000 to $100,000.
• Medical Payments Coverage: This coverage pays for medical bills that are not covered by PIP. Regular PIP coverage only covers 80% of medical bills up to $10,000, so you may be responsible for the remaining 20% if you don't have medical payments coverage. This is especially important if you don't have health insurance or have a high deductible or co-pay. The recommended coverage limit for medical payments coverage is at least $5,000.
• Umbrella Policy: If you want coverage above the maximum limits offered by your insurance company, you can purchase an umbrella policy, which provides additional coverage at a relatively low cost.

Frequently asked questions