Florida: Vehicle Insurance, Mandatory Or Not?

Vehicle insurance is mandatory in Florida. Before registering a vehicle with at least four wheels, you must show proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance. The minimum coverage is $10,000 in both PIP and PDL.

Florida's minimum insurance requirements

Florida is a no-fault state, which means that each driver's insurance covers injuries or medical expenses for them and their passengers, regardless of who caused the crash.

Florida's insurance laws are relatively straightforward. 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.
• After that, the at-fault driver could be liable for any additional medical expenses.
• PIP insurance typically comes with a deductible, the amount you’re responsible for before insurance pays out.
• You can't increase your $10,000 PIP limit. If your or your passengers' medical costs exceed $10,000, you may have to pay the rest out of pocket or rely on other types of insurance, like medical payments coverage or health insurance.

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.
• If you stick with Florida's minimum auto insurance requirements, any repair or replacement cost beyond $10,000 may be your responsibility to pay.
• Most auto insurance companies allow drivers to increase their PDL coverage up to $100,000 or more.

Other Requirements

• Insurance must be purchased from a licensed provider: Florida drivers must purchase car insurance from an insurance company licensed in Florida.
• Continuous coverage: Vehicle owners must maintain continuous insurance coverage throughout the registration period, regardless of the car's location. The only exception is for military members.
• Policy cancellation: Florida drivers who move out-of-state must surrender their vehicle's license plates and registration before they cancel their insurance policy.

Continuous coverage

In Florida, vehicle owners must maintain continuous insurance coverage throughout the registration period, regardless of the vehicle's location. The only exception to this rule is for military members stationed out-of-state or overseas.

If you are a Florida resident, you must obtain a registration certificate and license plate within 10 days of beginning employment or enrolling your children in school. 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.

If you are moving out of state, do not cancel your Florida insurance until you have registered your vehicle in your new state or have surrendered all valid plates/registrations to a Florida driver's license office, motor vehicle service center, or Tax Collector's office.

Failure to maintain continuous insurance coverage in Florida may result in the suspension of your driver's license, registration, and/or license plate for a minimum of three years, as well as a reinstatement fee of up to $500.

Policy cancellation

Vehicle insurance is mandatory in Florida. 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.

Now, onto policy cancellation. If you are a Florida driver who is moving out of state, you must surrender your vehicle's license plates and registration before you cancel your insurance policy. If you cancel your policy, the insurer must mail the unearned portion of any premium paid within 30 days after the effective date of the cancellation or receipt of the cancellation request. If the insurer cancels the policy, they must mail the unearned premium within 15 days after the effective date of the cancellation. If the unearned premium is not mailed within the applicable period, the insurer must pay the insured 8% interest on the amount due. If the unearned premium is not mailed within 45 days after the applicable period, the insured can take legal action against the insurer. If the insured cancels, the insurer may retain up to 10% of the unearned premium and must refund at least 90% of the unearned premium. If the insurer cancels, they must refund 100% of the unearned premium.

If you are keeping the same insurance carrier when moving out of state, they can change your coverage to your new state of residence when you make the registration change. However, do not cancel your Florida insurance until you have registered your vehicle in the new state or have surrendered all valid plates/registrations to a Florida driver's license office. If you fail to maintain the required insurance coverage in Florida, your driver's license and license plates can be suspended for up to three years, and you will be required to pay a reinstatement fee of up to $500.

No-fault car insurance

Florida is a no-fault state, which means that in the event of a car accident, both parties turn to their auto insurance policies to make claims, regardless of who was at fault. This is why Florida law requires drivers to have a minimum of $10,000 in personal injury protection (PIP) and property damage liability (PDL) coverage.

In a no-fault state, each driver’s insurance covers injuries or medical expenses for them and their passengers, regardless of who caused the crash. In Florida, this means that every driver must carry a minimum of $10,000 in PIP coverage to drive legally. So, if you’re in an accident, your PIP coverage will help pay for medical expenses and lost wages, up to your policy limits. After that, the at-fault driver could be liable for any additional medical expenses.

No-fault insurance also covers these same expenses for any passengers in the vehicle. PIP coverage also protects the policyholder while they're a passenger in someone else's vehicle, and as a pedestrian or bicyclist if they're struck by a motor vehicle.

PIP insurance covers 80% of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury, no matter who caused the crash. It also provides 60% of your gross wages and loss of future earning capacity if you cannot work because of your injuries. Additionally, if your loved one dies from an accident injury, PIP will provide $5,000 in death benefits per covered individual.

Restrictions on No-Fault Insurance

No-fault insurance has a limit on medical expenses; it will only pay up to a certain amount. If your injuries are serious enough that they meet the law’s “injury threshold,” or exceed your PIP coverage, then you may choose to file a lawsuit against the other driver.

No-fault insurance also doesn't cover damage to your vehicle. To cover this, you can choose to carry physical damage coverage, otherwise known as full coverage. Collision coverage helps pay to repair vehicle damage after an accident, while comprehensive coverage helps pay to repair vehicle damage stemming from non-accident incidents, such as flood, theft, vandalism, and falling objects.

Optional car insurance coverage

In Florida, drivers are required to carry a minimum of $10,000 in both personal injury protection (PIP) and property damage liability (PDL) insurance. However, there are several types of optional car insurance coverage that drivers can choose to add to their policies for more comprehensive protection. Here are some of the most common types of optional car insurance coverage in Florida:

• Collision Insurance : This type of insurance covers repairs to your car if it collides with another vehicle, crashes into an object, or turns over. It doesn't matter who caused the accident—collision insurance will still pay for the repairs. However, it's important to note that collision insurance doesn't cover injuries to people or damage to the property of others. While not required by law, you may be required to purchase collision insurance if your car is financed.
• Comprehensive Insurance : Comprehensive insurance covers losses from incidents other than a collision. This includes fire, theft, windstorm, vandalism, flood, or hitting an animal. Damage caused by falling objects is also covered under this type of policy. If you have comprehensive coverage, windshield replacement is the only claim for which you won't be charged a deductible. Florida law requires this waiver to encourage drivers to replace damaged windshields immediately.
• Uninsured Motorist (UM) Insurance : This type of insurance covers you, your passengers, or family members if you are hit by someone who doesn't have insurance or doesn't have enough insurance to cover the total damages. UM insurance also applies in hit-and-run situations or accidents with uninsured drivers. It covers medical expenses, lost wages beyond your PIP coverage, bodily injury, sickness, disease, or death resulting from a motor vehicle accident for you and your passengers.
• Medical Payment Insurance : This type of insurance covers medical expenses beyond those covered by PIP. It covers medical expenses for you, members of your family, and your passengers, regardless of who is at fault in the accident. Medical payment insurance also applies if the injury occurs in someone else's car or on the street as a pedestrian. Note that health insurance may also cover medical expenses beyond those covered by PIP.
• Rental Reimbursement Coverage : This type of insurance will reimburse you for car rental expenses if an accident leaves your car unable to be driven. If the other driver was at fault, their liability insurance coverage may reimburse you for renting a vehicle similar to your own.
• Accidental Death and Dismemberment Insurance : This type of insurance provides coverage for accidental death or dismemberment in an auto accident, regardless of who is at fault. It covers you and relatives who live in your home up to the limits of the policy.

These are just a few examples of optional car insurance coverage that Florida drivers can choose to add to their policies. It's important to review your insurance needs and select the coverage options that best suit your specific situation.

Frequently asked questions