Auto Insurance: Florida's Mandatory Law

Yes, you need auto insurance to drive in Florida. 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 caused the accident. The minimum insurance requirements in Florida are $10,000 in personal injury protection (PIP) and $10,000 in property damage liability (PDL) coverage. This means that your insurance company will pay up to $10,000 for property damage you cause in a single accident and $10,000 for medical expenses and lost wages.

Florida's minimum auto insurance requirements

Florida is one of the few states that require drivers to have auto insurance. Before registering a vehicle with at least four wheels in Florida, you must show proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance.

Personal Injury Protection (PIP)

PIP covers 80% of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury, no matter who caused the crash.

Property Damage Liability (PDL)

PDL coverage pays for damage to another person's property caused by you or someone else driving your insured vehicle.

Any vehicle with a current Florida registration must:

• Be insured with PIP and PDL insurance at the time of vehicle registration.
• Have a minimum of $10,000 in PIP and a minimum of $10,000 in PDL. Vehicles registered as taxis must carry bodily injury liability (BIL) coverage of $125,000 per person, $250,000 per occurrence, and $50,000 for PDL coverage.
• Have continuous coverage even if the vehicle is not being driven or is inoperable.
• Purchase the policy from an insurance carrier licensed to do business in Florida.
• Maintain Florida insurance coverage continuously throughout the registration period, regardless of the vehicle's location.

Other Requirements

You must obtain the registration certificate and license plate within 10 days of beginning employment or enrolling your children in school in Florida. You must also have a Florida certificate of title for your vehicle unless an out-of-state lien holder/lessor holds the title and will not release it to Florida.

You must maintain the required insurance coverage throughout the registration period, or your driving privilege and license plate may be suspended for up to three years. Failure to maintain required insurance coverage in Florida may result in the suspension of your driver's license/registration and a requirement to pay a reinstatement fee of up to $500.

Florida's no-fault insurance laws

Florida is one of 12 no-fault states in the US. This means that, regardless of who is at fault, each driver's insurance covers injuries or medical expenses for themselves and their passengers. In other words, each person pays for their own accident expenses, no matter who is at fault.

Florida's no-fault laws require drivers to carry personal injury protection (PIP) coverage as part of their auto insurance. This no-fault coverage pays the insured's bills, regardless of fault, up to the limit of the insurance (the minimum limit is $10,000). PIP covers 80% of medical bills, 60% of lost wages, and 100% of replacement service costs (any service needed because of a loss of ability caused by the accident).

It is important to note that PIP is not liability insurance and only benefits the insured. This coverage follows the individual in any vehicle they are driving in the state of Florida, whether it is owned, borrowed, or rented.

While Florida's no-fault laws require a minimum of $10,000 in PIP coverage, drivers can purchase a policy with higher limits. This is recommended, as you may be liable to pay significant compensation to other parties for medical bills and other items if you cause a car accident that results in severe injuries or death.

Additionally, while PIP helps cover your medical costs, it does not pay for damage to your vehicle. Many drivers opt for a full-coverage policy, which includes collision and comprehensive coverage, to ensure their vehicle is protected from auto accident costs.

Florida's no-fault laws were intended to lower the number of tort lawsuits in relation to car accidents. However, if an accident causes someone more damage or injuries than your insurance policy covers, they have the right to sue you for damages. In these cases, you may be required to pay for extra damages if the court rules that you acted negligently or caused injuries that resulted from negligence.

To summarise, while Florida's no-fault laws require a minimum level of personal injury protection, it is advisable to carry more coverage than the minimum requirement to ensure you are protected in the event of a lawsuit.

Penalties for driving without insurance in Florida

Driving without insurance in Florida is illegal and can lead to various penalties. These penalties can be divided into two categories: legal penalties and financial implications.

Legal Penalties

If you are caught driving without insurance in Florida, you could face serious legal consequences, including:

• Fines: For a first offense, you may be fined up to $500. Subsequent offenses within three years of the first offense can result in higher fines, ranging from $250 to $500.
• License suspension: Your driver's license can be suspended until you pay the reinstatement fee and provide proof of insurance. The suspension period can last up to three years.
• Vehicle registration suspension: In addition to your driver's license, your vehicle's registration may also be suspended until you provide proof of insurance.
• Impoundment: If you are pulled over without insurance, the police can impound your vehicle.
• Imprisonment: In certain circumstances, driving without insurance can even lead to jail time, especially for repeat offenders or those involved in accidents.

Financial Implications

In addition to the legal penalties, there are significant financial consequences to driving without insurance in Florida:

• Out-of-pocket expenses: If you are involved in an accident without insurance, you may be responsible for covering all the damages and injuries yourself. This can result in substantial financial burdens and, in extreme cases, even bankruptcy.
• Higher insurance costs: If you apply for insurance after a coverage lapse, you may face higher insurance rates as you will be considered a high-risk driver.
• SR-22 or FR-44 requirements: You may be required to obtain an SR-22 or FR-44 certificate, which verifies that you have auto insurance liability coverage. This requirement may last for up to three years after your driving privileges are reinstated.

Florida's auto insurance costs

Florida is one of the most expensive states for auto insurance. The average cost of car insurance in Florida is higher than the national average. The average cost of full-coverage car insurance in Florida is $3,795 per year, well above the national average of $2,681 per year. The average cost of minimum-liability car insurance in Florida is $134 per month or $1,605 per year, which is also significantly higher than the national average of $72 per month or $869 per year.

The required auto insurance in Florida includes personal injury protection (PIP) and property damage liability insurance. The state doesn’t require bodily injury liability insurance, which covers other parties’ medical expenses, funeral expenses, and lost wages if you cause an accident. The minimum car insurance requirements in Florida include $10,000 for Property Damage Liability (PDL) and $10,000 for Personal Injury Protection (PIP).

Florida is a no-fault state, meaning that each driver’s insurance covers medical expenses for them and their passengers, regardless of who caused the accident. This is why PIP coverage is mandatory in Florida.

The cost of car insurance in Florida is determined by several factors, including age, level of coverage, location, driving record, and credit history. Age is a significant factor, as younger drivers typically face higher insurance rates. For example, in Florida, a 16-year-old male driver added to a family policy would average an annual cost of $5,673. The cost of insurance tends to decrease as drivers get older and gain more experience.

The type of car you drive also affects the cost of insurance in Florida. Insuring a car that is expensive to repair or a common target for theft can increase insurance rates. Additionally, the density of the population and heavy traffic in urban areas of Florida contribute to higher insurance premiums.

When it comes to specific insurance providers, Geico, State Farm, and Travelers tend to offer the most affordable car insurance rates for Florida drivers. Geico offers the cheapest car insurance premiums in Florida, with average monthly rates of $54 for minimum coverage and $174 for full coverage.

Optional auto insurance coverage in Florida

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. Florida's no-fault insurance system is designed to reduce the number of lawsuits filed over car accidents, as drivers turn to their own insurance carriers for claims.

While Florida stipulates that drivers must carry a minimum of $10,000 in property damage liability and $10,000 in personal injury protection, there are several other types of optional auto insurance coverage that drivers can consider. These include:

• Bodily injury liability (BIL) coverage: This protects you if you have a car accident in which people are injured or killed due to your negligence. Even though Florida is a no-fault state, an injured party could still sue you for damages if they go beyond what your minimum insurance requirements cover.
• Collision coverage: This covers any damage you receive from an accident. Remember that collision insurance isn't covered in your minimum Florida liability or personal injury protection (PIP) coverage.
• Comprehensive coverage: Auto theft, "acts of nature," and other accidents outside of vehicle collisions are covered by this additional policy. In Florida, claims related to hail storms, lightning, floods, and hurricane damage are common under a comprehensive insurance policy.
• Roadside assistance: This covers services like towing, flat tire changes, and jump-starts when your car breaks down. However, it does not include the cost of parts or repairs needed after the tow.
• Medical coverage: This is an extra policy to pay for medical expenses like hospital stays and medical treatment due to a serious accident.
• Rental car reimbursement: This covers the cost of a rental car while your vehicle is being repaired after a covered event. However, it does not include fuel, insurance, or other rental extras.
• Uninsured/underinsured motorist protection: This covers medical expenses, lost wages, and repair costs if you're hit by a driver with no or insufficient insurance.

While these coverages are optional, it is always a good idea to carry more coverage than the minimum requirement to ensure you are protected in any situation.

Frequently asked questions