Florida Auto Insurance: Is It Mandatory?

Florida requires drivers to have a minimum level of auto insurance coverage. Before registering a vehicle with at least four wheels in Florida, you must show proof of insurance with you whenever you drive and it must be current. In the event that you’re pulled over or in a car accident, you will be asked by law enforcement to show this proof. The minimum requirements for auto insurance coverage are: $10,000 for personal injury protection (PIP) and $10,000 for property damage liability (PDL).

Florida's auto insurance requirements

Florida is one of the few states that require 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 insurance covers the policyholder regardless of whether they caused the accident, up to $10,000 minus the deductible amount. PIP is designed to reduce the necessity of suing for reimbursement of medical and related bills from auto accidents. PIP covers:

• 80% of reasonable medical expenses related to the accident.
• 60% of lost wages as a result of the accident.
• $5,000 for death benefits.

Property Damage Liability (PDL)

Property damage liability insurance pays for damage that you, or members of your family, cause to another person’s property while driving. The term “property” includes, for example, a fence, telephone pole or building, as well as another car. Coverage applies even if you drive someone else’s car.

Other Types of Insurance

Although it is not required by law, many drivers buy other types of insurance coverage in addition to the mandatory PIP and PDL insurance. Common optional coverage includes:

• Collision insurance
• Comprehensive insurance
• Uninsured motorist insurance
• Medical payment insurance
• Rental reimbursement coverage
• Accidental death and dismemberment insurance

Florida's "No-Fault" Status

Florida is a "no-fault" state, meaning that each person pays for their own accident expenses, no matter whose fault it is. However, if an accident causes someone more damage or injuries than your insurance policy covers, they have a right to sue you for damages.

Property damage liability insurance

Florida law requires that all motor vehicles with four or more wheels be covered by a minimum of $10,000 of property damage liability insurance. This insurance covers damage to another person's property caused by you or someone driving your insured vehicle. The term "property" is not limited to other vehicles but includes fences, telephone poles, buildings, and more.

If you stick with the minimum amount of coverage, any repair or replacement cost beyond $10,000 may be your responsibility to pay. Most auto insurance companies allow drivers to increase their property damage liability coverage (or "limit") up to $100,000 or more.

When choosing your property damage liability insurance limit, consider that paying a little more for a limit greater than the state minimum may be worth it. If you cause an accident, you will be responsible for repair costs that exceed your liability limits.

Personal injury protection insurance

Personal injury protection (PIP) insurance is required for all motorists in Florida. This type of insurance covers personal injuries sustained in a car crash, regardless of who is at fault. PIP insurance pays for medical bills and lost wages if you are unable to work. It can also be used to hire someone to do household chores, provide childcare, or drive if you are unable to do so. PIP coverage pays 80% of medical bills and 60% of lost wages, up to a maximum of $10,000. Additionally, it provides $5,000 in death benefits.

PIP insurance is designed to reduce the need for lawsuits to reimburse medical and related bills from auto accidents. To be eligible for PIP benefits, you must receive initial services and care within 14 days of the accident. PIP insurance covers the policyholder, their children, relatives living in the same household, certain passengers who do not own a vehicle, and other drivers who have permission to drive the insured vehicle. Pedestrians and bicyclists are also entitled to PIP coverage in the event of a crash with a motor vehicle.

In the case of accidents occurring outside of Florida but within the US or Canada, PIP insurance covers the policyholder and their relatives living in the same household, but only if they are driving their own vehicle. For non-residents, a vehicle must be present in the state for ninety days or more in a year for the owner to be required to obtain PIP insurance.

While Florida's PIP insurance provides essential coverage, it is recommended to purchase a policy with higher limits. The minimum $10,000 coverage may not be sufficient to cover all expenses in the event of a serious accident.

Bodily injury liability insurance

In Florida, Bodily Injury Liability (BIL) insurance is not generally required. However, if you have been convicted of a DUI, you will need BIL for a period of three years after your license has been reinstated. If you were convicted on or before October 1, 2007, you must have BIL coverage of at least $10,000 per person and $20,000 per incident. If your conviction was after October 1, 2007, the minimum requirement is $100,000 per person and $300,000 per accident.

BIL insurance covers serious and permanent injuries or deaths of others when your car is involved in an accident and the driver of your car is found to be at fault. This policy pays for injuries caused by you and relatives living with you, even if they are driving someone else's car. It also covers people who drive your car with your permission. With BIL, the insurance company will also pay for your legal defence if you are sued.

Although BIL is not mandatory in Florida, it is recommended that you have at least $10,000 of coverage. This is because if you cause a car accident and cannot meet the Florida Financial Responsibility requirements, your license will be suspended for three years. The only way to get your license back sooner is to be released from all liability or post security to cover the injured person's claim.

If you drive or register a vehicle in Florida without BIL, you are exposing yourself to potential problems. This is because there are many drivers in Florida who do not have BIL coverage. If they injure you in an accident, you may not be able to recover money from them for your injuries.

In addition to BIL, Florida requires drivers to have Personal Injury Protection (PIP) and Property Damage Liability (PDL) insurance. PIP covers 80% of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury, regardless of who caused the crash. PDL insurance pays for damage to another person's property caused by you or someone driving your insured vehicle.

Uninsured motorist coverage

Florida has one of the highest rates of uninsured drivers in the US, with over 20% of drivers uninsured. This means that if you are in an accident, there is a significant chance that the other driver will not have insurance to cover your damages. This is where uninsured motorist coverage comes in.

You can purchase "stacked" or "non-stacked" uninsured motorist coverage. Stacked insurance increases the amount of uninsured motorist coverage depending on the number of vehicles insured. In Florida, you can stack policies within one policy or across multiple policies. For example, if you have two separate insurance policies for two cars, each with $60,000 of uninsured motorist bodily injury coverage, you can increase the limit to $120,000 to cover medical and/or property payments in excess of the $60,000 policy limit.

While purchasing uninsured motorist coverage will increase your monthly premiums, it can provide much-needed financial protection in the event of an accident with an uninsured or underinsured driver.

Frequently asked questions