Florida: Vehicle Insurance, Mandatory Or Not?

Is Vehicle Insurance Mandatory in Florida?

Yes, vehicle insurance is mandatory in Florida. Florida law requires drivers to carry a minimum of $10,000 in personal injury protection (PIP) and property damage liability (PDL) insurance. This means that if you have a vehicle with four or more wheels, you must have insurance that covers medical expenses and lost wages, as well as damage to another person's property. Florida is a no-fault state, so each driver's insurance covers injuries or medical expenses for themselves and their passengers, regardless of who caused the accident.

Florida's minimum insurance requirements

Florida is a no-fault state, and to register and legally operate a vehicle, drivers must carry no-fault insurance. Florida's minimum insurance requirements are as follows:

• Personal Injury Protection (PIP) insurance: This covers 80% of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury, regardless of who caused the crash.
• Property Damage Liability (PDL) insurance: This pays for damage to another person's property caused by you or someone else driving your insured vehicle. The minimum PDL coverage required is $10,000.

Vehicles registered as taxis must carry additional insurance:

Bodily Injury Liability (BIL) coverage: This pays for injury or death to others. The minimum BIL coverage for taxis is $125,000 per person and $250,000 per occurrence.

It is important to note that Florida's minimum coverage limits are fairly low, and a serious accident could result in costs exceeding these limits. As such, it is recommended to purchase coverage beyond the legal minimum and consider adding optional coverages such as comprehensive and collision insurance to ensure full protection.

Driving without insurance in Florida

Legal Requirements for Driving in Florida

Florida law requires drivers to have auto insurance to legally operate a vehicle. The minimum amount of car insurance required by law is liability insurance, which covers any damages or injuries you may cause to others in an accident. Specifically, drivers in Florida are required to carry a minimum of $10,000 in personal injury protection (PIP) and $10,000 in property damage liability (PDL) coverage.

Penalties for Driving Without Insurance in Florida

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

• Fines: For a first offence, you may be fined up to $150. For subsequent offences, the fines increase to up to $250 for a second offence within three years and up to $500 for a third or subsequent offence within three years.
• License suspension: Your driver's license and registration may be suspended for up to three years, or until you provide proof of insurance and pay the applicable reinstatement fee.
• Reinstatement fees: The reinstatement fee for a first offence is $150. For a second offence within three years, the fee increases to $250, and for a third or subsequent offence within three years, the fee is $500.
• Difficulty obtaining insurance: If you have a history of driving without insurance, insurance companies may consider you a high-risk driver, making it more challenging and expensive to obtain coverage.
• SR-22 requirement: You may be required to file an SR-22 form, which proves that you have the minimum required auto insurance, before your license can be reinstated.
• Increased insurance costs: If you apply for insurance after a coverage lapse, you may face higher insurance costs due to being considered a high-risk driver.
• Lawsuits and financial burden: If you are involved in an accident while uninsured, you may be held personally liable for all damages and medical expenses incurred by the other driver, which can result in financial hardship or even bankruptcy.

Additional Considerations

It is important to note that even if your vehicle is not being driven or is inoperable, it must still be insured if it has a current Florida registration. If you plan to stop using your vehicle, you must surrender the license plate/tag before cancelling your insurance to avoid suspension and reinstatement fees. Additionally, if you move out of Florida, you must surrender your Florida license plates and registration before cancelling your insurance policy.

No-fault liability

Florida is a "no-fault" car insurance state. This means that, in the event of a car accident, your insurance claim will be made against your own insurance coverage, regardless of who caused the accident. This is intended to make the insurance claim process more efficient.

No-fault insurance in Florida is called "personal injury protection" or "PIP" coverage. This type of insurance covers the medical bills and other financial losses of anyone covered under the policy (up to policy limits). This includes the policyholder's children, members of the policyholder's household, and most passengers who lack their own PIP insurance (as long as they don't own a 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.

In Florida, you must have a minimum of $10,000 in PIP coverage and a minimum of $10,000 in property damage liability (PDL) coverage to register a vehicle. PDL coverage pays for damage to another person's property caused by you or someone else driving your insured vehicle.

It's important to note that Florida's no-fault system does not apply to vehicle damage claims after a car accident. A liability claim for damage to a vehicle can be made against the at-fault driver, with no limitations.

While no-fault insurance can streamline the insurance claim process, it also has its limitations. In Florida, you can't get compensation for "pain and suffering" and other non-monetary damages stemming from the accident. If your injuries meet the threshold of a serious injury under Florida law, you may be able to pursue a liability claim against the person who caused the accident and seek compensation for non-economic losses.

Purchasing insurance from a licensed provider

Florida has specific requirements that must be met before you can purchase vehicle insurance from a licensed provider.

Firstly, it is important to note that insurance agents in Florida must be licensed to sell insurance in the state. They must also have active appointments with specific companies to be able to legally sell insurance products. To verify an agent's license, you can call the DFS Consumer Helpline toll-free at 1-877-693-5236.

When selecting an insurance company, it is advisable to check the company's financial rating. Several organizations, such as A.M. Best Company, Fitch Ratings, Moody's Investors Service, Standard & Poor's, and Demotech, publish insurance company ratings. These ratings are based on various elements, including financial data, management operations, and company history.

Before purchasing insurance, you should also verify that the company is licensed to sell insurance in Florida by calling the DFS Consumer Helpline. Be sure to have the full, legal name of the insurance company when you call.

The application process for insurance can vary depending on the type of insurance being purchased. However, it is important to ensure that all information provided on the application is correct. If incorrect information is given, whether intentionally or not, the policy may be rescinded, and a claim denied at a later date.

• Ensure that all licensed drivers in your household are listed on the application.
• The agent may need to inspect the vehicle or take pictures before providing coverage.
• The agent may request a copy of your prior insurance policy.
• The agent may ask for the names and social security numbers of all listed drivers.

Additionally, Florida has specific requirements for vehicle insurance coverage. Before registering a vehicle in Florida, you must show proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile 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 coverage pays for damage to another person's property caused by you or someone driving your insured vehicle.

Florida law also requires continuous coverage for registered vehicles, even if the vehicle is not being driven or is inoperable. If you cancel your insurance, you must surrender the license plate/tag before doing so.

By following these steps and meeting the necessary requirements, you can purchase insurance from a licensed provider in Florida and ensure that you have the required coverage for your vehicle.

Optional auto insurance coverage

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. Florida drivers are required to carry a minimum of $10,000 in personal injury protection (PIP) and property damage liability (PDL) coverage. While these are the only types of insurance mandated by the state, there are several other types of optional auto insurance coverage that drivers can benefit from adding to their policy.

Bodily Injury Liability (BIL)

BIL is optional in Florida but highly recommended by insurance experts. It covers any medical bills for the people in the vehicle you hit after PIP limits are exhausted, up to the BIL limit. This is particularly important if you cause injuries to a pedestrian or bicyclist who does not have their own auto insurance. Florida law requires drivers with a DUI conviction to carry BIL insurance for three years after their license is reinstated.

Medical Payments (MedPay)

MedPay covers up to 20% of medical bills for yourself and your passengers that are not covered by PIP, up to the limit of coverage. It does not matter who is at fault in the accident. MedPay also covers you as a pedestrian or if you are riding in someone else's vehicle. Unlike PIP, MedPay only covers medical expenses and not lost wages.

Uninsured or Underinsured Motorist Coverage (UM)

UM coverage pays for damage (up to the limit you carry) if you are hit by someone without insurance or with insufficient insurance to cover the claim. This includes hit-and-run situations or "phantom" vehicle accidents. UM insurance also covers medical expenses, lost wages beyond your PIP coverage, and bodily injury, sickness, disease, or death resulting from a motor vehicle accident for you and your passengers.

Roadside Assistance

Roadside assistance covers basic vehicle repairs if your car breaks down on the side of the road, as well as costs associated with towing, gas delivery, battery services, and tire changes.

Rental Reimbursement

Rental reimbursement covers the cost of a rental car while your vehicle is being repaired due to a covered claim. You must carry comprehensive or collision insurance, or both, to qualify for rental reimbursement.

Gap Insurance

Gap insurance is crucial for drivers who lease or finance their vehicles. It pays for the difference between the car's value and the remaining balance on the loan in the event of an accident.

Collision Insurance

Collision insurance covers repairs to your car if it collides with another vehicle, crashes into an object, or turns over. It is important to note that collision insurance does not cover injuries to people or damage to the property of others.

Comprehensive Insurance

Comprehensive insurance covers losses from incidents other than a collision, such as fire, theft, windstorm, vandalism, flood, or hitting an animal. Damage caused by falling objects and hail storms, lightning, floods, and hurricanes is also covered under this policy. If you have comprehensive coverage, windshield replacement is the only claim for which you are not charged a deductible.

Frequently asked questions