Insuring Old Vehicles In Florida

Florida has some of the lowest minimum car insurance requirements in the US, and it is the only state (excluding New Hampshire) that doesn't mandate Bodily Injury Liability insurance (BI). The state's minimum requirements are $10,000 Personal Injury Protection (PIP) insurance and $10,000 Property Damage Liability coverage (PDL). PDL covers damage to another person's property, while PIP insurance covers 80% of medical bills and up to 60% of lost wages. In Florida, car insurance costs decrease as a vehicle gets older, as the car's value depreciates over time, and the risk of theft is lower.

Florida's minimum insurance requirements

Personal Injury Protection (PIP)

PIP 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 typically comes with a deductible, the amount you’re responsible for before insurance pays out.

Property Damage Liability (PDL)

PDL coverage 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 $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.

How to insure a classic car

Classic cars are unique vehicles that require special auto coverage. Regular auto insurance is not sufficient to protect such vehicles against damage or loss. Classic car insurance is available for antique, exotic, custom, historic, and collectible cars. The benefits and drawbacks of classic car insurance tend to be similar, but the types of vehicles eligible may vary by provider.

Qualifying for Classic Car Insurance

While requirements differ from company to company, most cars need to meet the following criteria to qualify for classic car insurance:

• Limited use: Classic cars cannot be used for everyday commuting or errands, and your policy may include mileage limitations and proof that the car is being properly stored. In some cases, insurers may require that you also own a primary car for everyday use.
• Car shows and meetings: The limited-use provision of a classic car policy allows for travel to car shows and auto club meet-ups; however, this coverage may be restricted by some insurers.
• Secure storage: When not in use, your classic car must be stored in a locked, enclosed, private structure, such as a residential garage or storage unit.
• Clean driving record: You may be disqualified from classic auto insurance if you have serious offenses on your driving record, such as reckless driving, repeat speeding violations, or driving while intoxicated.

What Classic Car Insurance Covers

A classic car insurance policy provides many of the same coverages as a regular auto insurance policy. A classic car policy can provide liability coverages, uninsured and underinsured motorist coverage, and medical coverages like personal injury protection or medical payments coverage. You can also purchase towing and roadside assistance reimbursement coverage.

The primary difference in a classic car insurance policy is the coverage it provides for your vehicle under collision and comprehensive coverages. These coverages will be based on the agreed value of your vehicle. This amount is an agreement between you, as the owner, and the insurer on the value of the vehicle the policy is written for. This amount usually considers industry guidelines and is generally reviewed upon policy renewal.

Up to $500 in coverage for spare parts may also be available. You can add additional spare part coverage for an additional premium.

Eligibility for Classic Car Insurance

Classic car insurance isn't designed for cars used on a daily basis or ordinary vehicles. Classic car insurance companies usually require something special about the vehicle, such as an old age, a high value, or some customization. In general, your car must fall into at least one of the following categories:

• At least 25 years old
• Parked in a secure and fully enclosed garage, carport, storage facility, or other approved structure
• Not used for daily commuting
• Driven no more than 7,500 miles per year (this varies by company)

How insurance costs change with vehicle age

The cost of car insurance is influenced by various factors, including the age and condition of the vehicle. In Florida, car insurance rates are impacted by the make and model of the vehicle, with older cars generally resulting in cheaper insurance premiums.

Factors Affecting Insurance Costs

When determining insurance costs, insurers consider the vehicle's age, make, model, safety features, safety record, and value. As a car gets older, its value typically decreases due to depreciation, resulting in lower insurance premiums. Additionally, older vehicles may not require comprehensive and collision coverage, as their value is lower, and they may be less appealing to thieves, reducing the risk of theft.

Insurance Costs for Older Vehicles in Florida

In Florida, car insurance rates tend to decrease as the vehicle gets older. For example, the insurance rate for a 2021 Chevrolet Blazer 2LT is $2,126 per year, while the rate for a 2022 model of the same vehicle is $2,352 per year. This decrease in insurance costs is likely due to the depreciation in the value of the vehicle over time.

Minimum Insurance Requirements in Florida

It is important to note that regardless of the vehicle's age, Florida has specific minimum insurance requirements that must be met. Before registering a vehicle in Florida, proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance is mandatory. PIP covers medical expenses up to $10,000 resulting from a covered injury, while PDL coverage pays for damage to another person's property. Continuous coverage is also required, even if the vehicle is not being driven or is inoperable.

Cost-Saving Considerations

When insuring an older vehicle, it is essential to review the insurance policy to understand which coverages are mandatory and which may be excessive or unnecessary. For example, comprehensive and collision coverage may not be necessary for an older car with a low value. Consulting with a local insurance agent can help determine the most appropriate coverage for an older vehicle.

How to insure a new driver

Adding a new driver to your insurance policy is a crucial step in ensuring that you and your loved ones are protected on the road. Here are some detailed and direct instructions on how to insure a new driver, with a focus on the state of Florida:

Understanding the Impact on Your Premium

Before adding a new driver to your policy, it's important to recognize how this decision may affect your insurance rates. Several factors contribute to this, including the driver's age, driving record, and the type of vehicle they will be operating. Younger or less experienced drivers, such as teens or those with no prior insurance history, often result in higher premiums due to statistical risk factors.

Timing and Grace Periods

Most insurance companies require you to add a new driver to your policy as soon as they start using your vehicle regularly. While some companies may offer a grace period, it's generally advisable to notify your insurance provider promptly to avoid any issues with coverage in the event of an accident.

Contacting Your Insurance Provider

Reach out to your insurance company to inform them of your intention to add a new driver. They will guide you through the process and provide any necessary forms. Be prepared to provide the new driver's full name, date of birth, driver's license information, and driving history, if available.

Policy Adjustment and Review

The insurance company will assess the new driver's risk profile and make adjustments to your policy accordingly. This may lead to changes in your premium, depending on the factors mentioned earlier. Once all the necessary information has been provided, the insurance company will review and update your policy to include the new driver.

Ways to Reduce Costs for New Drivers

While insurance for new drivers tends to be expensive, there are strategies to mitigate the costs:

• Stay on a Family Policy: If possible, new drivers can benefit from lower rates by remaining on their parents' or guardians' insurance policy. This is especially true for teens, as long as they share the same permanent address.
• Shop Around and Compare Rates: Rates can vary significantly between insurance providers. It's advisable to compare quotes from at least three companies to find the most affordable option.
• Look for Discounts: Many insurance companies offer discounts for students, good grades, defensive driving courses, safety features in the vehicle, and more.
• Choose a Higher Deductible: Opting for a higher deductible can lower your insurance premiums. Just ensure that you can afford to pay the deductible amount in the event of a claim.
• Select a Cheaper or More Modest Car: The make, model, and power of a vehicle influence insurance rates. Choosing a car with a smaller engine and fewer acceleration capabilities can result in lower insurance costs.
• Black Box or Telematics Insurance: This type of insurance involves installing a device that monitors the new driver's behaviour. Safe and responsible driving can lead to significant savings on premium prices.
• Add an Older, More Experienced Driver: Adding a parent or older driver to the new driver's policy can help reduce costs. Insurance providers may offer lower rates when they see that an experienced driver will also be using the vehicle.

Additional Considerations for Florida Residents

When insuring a new driver in Florida, it's important to be aware of the state's specific insurance requirements. Florida is a "no-fault" state, which means that each driver must carry their own insurance policy to cover any injuries or damages they may incur in an accident, regardless of who is at fault. Additionally, Florida has some of the highest car insurance rates in the country, with the average cost of insurance for a teenage driver being significantly higher than the national average. As such, it's especially important for new drivers in Florida to compare rates and take advantage of any available discounts to find the most affordable coverage.

How to offset higher insurance premiums

Florida's car insurance rates are among the highest in the US, with the average cost of full coverage being $3,467 and $1,094 for minimum coverage. Here are some ways to offset these higher insurance premiums:

• Shop around for quotes: By comparing rates from multiple providers, you can find the most affordable coverage for your specific needs.
• Increase your deductible: Raising your deductible can lead to significant savings on your premium. For example, increasing your deductible from $500 to $2,000 could halve your premium.
• Drop unnecessary coverage: Consider removing add-ons like rental car reimbursement and roadside assistance if they are not essential for you.
• Reduce coverage limits: While this increases financial risk in the event of an accident, it can be a last resort to lower your premium.
• Improve your credit score: A higher credit score can lead to lower insurance rates, as insurers associate lower scores with a higher likelihood of filing claims.
• Take a defensive driving course: Courses offered by organizations like AARP, AAA, and the National Safety Council can lead to discounts of 5% to 15% on your premium.
• Bundle your policies: Combining your auto insurance with other types of insurance, such as home or renter's insurance, can often result in a discount.
• Maintain a clean driving record: Good driver discounts can be substantial, with savings of up to 40% for those with no accidents, tickets, or violations.
• Choose a vehicle wisely: Luxury or high-performance vehicles often have more expensive repairs and replacement parts, leading to higher insurance rates.

Frequently asked questions