Florida Auto Insurance: Understanding The Minimum Coverage Requirements

Florida's auto insurance requirements are among the most minimal in the US. 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. The minimum requirements for auto insurance coverage in Florida are $10,000 for personal injury protection (PIP) and $10,000 for property damage liability (PDL).

Florida's minimum auto insurance requirements

Florida is a "no-fault" state, which means that each person pays for their own accident expenses, regardless of who is at fault. Florida's minimum auto insurance requirements are:

• $10,000 for personal injury protection (PIP)
• $10,000 for property damage liability (PDL)

Personal injury protection insurance covers you regardless of whether you cause an accident. It covers 80% of reasonable medical expenses related to the accident, 60% of lost wages as a result of the accident, and $5,000 for death benefits. It also covers relatives who live with you, certain passengers who do not own a vehicle, and others who drive your car with your permission.

Property damage liability insurance pays for damage that you, or members of your family, cause to another person’s property while driving. This includes not only another car, but also a fence, telephone pole, or building.

While Florida does not require bodily injury liability (BIL) insurance, it is recommended that you add this coverage to your policy. This will protect you if you have an accident in which people are injured or killed due to your negligence.

If you have been convicted of a DUI, BIL is required for a period of three years after your license has been reinstated. You must have $100,000 worth of coverage per person and $300,000 worth of coverage per accident, as well as a minimum of $50,000 in property damage coverage.

Florida's auto insurance requirements are quite low, so it is recommended that drivers obtain coverage above the state-mandated limits.

Property Damage Liability (PDL) insurance

PDL insurance covers the cost of damage caused to other people's property in a car accident. This includes damage to another person's car, house, or any other type of property. For example, if you damage someone else's car, PDL insurance will cover repairs to their vehicle, including auto body shop labour or replacement parts. It also covers damage to businesses, houses, fences, lampposts, and mailboxes.

In Florida, the minimum PDL coverage required to drive is $10,000. This means that your insurance company will pay up to $10,000 for property damage you cause in a single accident, even if multiple cars or properties are involved. If the damage caused by the accident exceeds $10,000, you may be responsible for paying the remaining amount. Most auto insurance companies allow drivers to increase their PDL coverage up to $100,000 or more.

It's important to note that PDL insurance only covers damage to other people's property, not your own. If you want coverage for damage to your own property, you would need to purchase comprehensive and collision coverage separately.

Florida has specific requirements for vehicle registration. Any vehicle with a current Florida registration must have continuous PDL insurance coverage, even if the vehicle is not being driven or is inoperable. If you cancel your PDL insurance, you must surrender your license plate before doing so. Failure to maintain the required PDL insurance coverage in Florida may result in the suspension of your driver's license and vehicle registration, as well as a reinstatement fee of up to $500.

Personal Injury Protection (PIP) insurance

The purpose of PIP insurance is to provide injured drivers with immediate access to funds to cover their medical expenses and other costs, without having to go through the legal system and establish fault. This can often be a lengthy process, and PIP insurance helps to speed up the time it takes for injured drivers to receive compensation.

In addition to covering the insured individual, PIP insurance also provides funds for children, household members, and certain passengers. If a passenger is travelling in a vehicle that is involved in an accident, their own PIP coverage will be triggered and available to them.

Florida law requires all owners of motor vehicles to purchase at least $10,000 of PIP insurance. This coverage must be purchased from an insurance company licensed to sell policies in Florida or by qualifying for a self-insurance certificate issued by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV).

It is important to note that PIP insurance has some limitations. For example, it does not cover all types of medical treatments, and it may not be sufficient to cover all medical costs and other expenses incurred in a serious accident. As such, it is recommended that drivers consider additional insurance coverage to ensure they are fully protected.

Overall, PIP insurance plays a crucial role in ensuring that Florida drivers have access to timely compensation for medical expenses and lost income in the event of an accident, regardless of who is at fault.

Bodily Injury Liability (BIL) insurance

In Florida, Bodily Injury Liability (BIL) insurance is not generally required. However, there are some exceptions. If you've been convicted of a DUI, you will need to have BIL insurance for a period of three years after your license has been reinstated. In this case, you must have $100,000 worth of coverage per person and $300,000 worth of coverage per accident, as well as a minimum of $50,000 in property damage coverage.

BIL insurance covers serious and permanent injury or death to 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 who live with you, even if they are driving someone else’s car. It also covers people who drive your car with your permission. With this type of policy, the insurance company will also pay for your legal defense if you are sued.

BIL insurance is important because it protects your assets if you injure someone else on the road. It is recommended that you purchase as much BIL insurance as you can afford. While the Financial Responsibility Law requires bodily injury liability coverage of $10,000 per person and $20,000 per accident, this amount is considered insufficient to protect you. A single visit to the hospital can easily cost more than that.

If you cause a car accident and can't 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 by the injured person or post security to cover their entire claim. Therefore, it is recommended to have at least the minimum bodily injury coverage of $10,000 per person and $20,000 per accident in Florida.

Optional auto insurance coverage

Florida is a no-fault state, which means that each driver's insurance covers their injuries or medical expenses, regardless of who is at fault. While Florida has some of the most minimal auto insurance requirements in the country, there are still several types of optional auto insurance coverage that drivers may want to consider.

Bodily Injury Liability (BIL)

Although not required, many experts recommend adding BIL coverage to your auto insurance policy in Florida. This type of insurance will protect you if you are at fault in a car accident that results in injuries or death. Since Florida is a no-fault state, an injured party could sue you for damages if they exceed your minimum insurance coverage. In this case, you would be required to pay for any extra damages if the court ruled that you acted negligently.

Collision

Collision insurance covers any damage you receive from a car accident. It is important to note that collision insurance is not included in the minimum Florida liability or PIP coverage. This means that if you only have the minimum required insurance, you will not be covered for any damage to your vehicle resulting from an accident.

Comprehensive

Comprehensive insurance covers auto theft, "acts of nature," and other accidents outside of vehicle collisions. In Florida, claims for hail storms, lightning, floods, and hurricane damage are common under a comprehensive insurance policy. Like collision insurance, comprehensive coverage is not required but can provide valuable protection beyond the state minimum.

Other Optional Coverages

In addition to the coverages mentioned above, there are several other types of optional auto insurance that may be offered by your insurance company. These include roadside assistance, medical coverage for hospital stays and medical treatment due to a serious accident, uninsured motorist coverage, and rental car reimbursement.

Frequently asked questions