Auto Insurance In Florida: Understanding The Different Types

Florida's auto insurance requirements are among the most minimal in the US. However, nearly 1 in 5 Florida drivers were uninsured in 2019, according to a 2021 study by the Insurance Research Council. Florida residents must have property damage liability and personal injury protection insurance to drive legally. Florida is considered a no-fault state, meaning that each person pays for their own accident expenses, no matter whose fault it is. 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 minimum insurance requirements

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.

Property Damage Liability (PDL)

PDL coverage pays for damage to another person’s property caused by you or someone else driving your insured vehicle.

Any vehicle with a current Florida registration must:

• Be insured with PIP and PDL insurance at the time of vehicle registration.
• Have a minimum of $10,000 in PIP and a minimum of $10,000 in PDL. Vehicles registered as taxis must carry bodily injury liability (BIL) coverage of $125,000 per person, $250,000 per occurrence, and $50,000 for PDL coverage.
• Have continuous coverage even if the vehicle is not being driven or is inoperable.
• Be purchased from an insurance carrier licensed to do business in Florida.
• Maintain Florida insurance coverage continuously throughout the registration period, regardless of the vehicle’s location.

Failure to maintain the required insurance coverage in Florida may result in the suspension of your driver's license and registration and a requirement to pay a reinstatement fee of up to $500.

Property damage liability insurance

Property Damage Liability (PDL) insurance is a mandatory type of auto insurance in Florida. PDL insurance pays for damage to another person's property caused by you or someone else driving your insured vehicle. This includes damage to another person's car, as well as other types of property such as fences, telephone poles, or buildings. The minimum amount of PDL coverage required in Florida is $10,000, and it must be purchased from an insurance carrier licensed to do business in the state.

PDL insurance is designed to protect you from financial liability in the event that you are at fault in an accident. It covers the cost of repairing or replacing the damaged property, and it may also cover legal expenses related to the accident. It is important to note that PDL insurance only covers damage caused while driving and does not include damage caused when not behind the wheel; separate personal liability insurance is needed for that.

While PDL insurance is a mandatory requirement in Florida, it is important for drivers to consider their individual needs and assess whether the minimum coverage is sufficient for them. Purchasing additional coverage can provide greater financial protection in the event of a serious accident.

In addition to PDL insurance, Florida law also requires drivers to carry Personal Injury Protection (PIP) insurance, which covers medical expenses and lost wages resulting from an accident, regardless of who is at fault.

Personal injury protection insurance

Personal Injury Protection (PIP) insurance is mandatory in Florida. It covers 80% of all necessary and reasonable medical expenses, up to $10,000, resulting from a covered injury, regardless of who caused the crash. This includes doctor's visits, medical exams, prescription medication, and diagnostic tests. PIP also covers 60% of lost wages, up to $10,000, and death benefits of up to $5,000 for funeral and burial expenses.

In Florida, you can choose whether your PIP covers just yourself or other residents in your household. You must file a PIP claim within two weeks of a crash, and your insurer has up to 60 days to investigate your claim.

The cost of PIP in Florida is about $300 per year, and you can reduce your premium by opting for a higher deductible, excluding work income, or choosing not to cover other residents of your household.

Florida is a no-fault state, which means that drivers file claims with their own insurance companies, regardless of who is at fault in an accident. While PIP is the only mandatory insurance in Florida, it is recommended to have additional coverage, such as bodily injury liability, to protect yourself from being sued for medical costs not covered by PIP.

Bodily injury liability insurance

Florida does not require bodily injury liability insurance unless you've been in a car accident or committed certain traffic violations. Many states require their residents to have bodily injury liability coverage to drive, but Florida does not. Florida only requires Personal Injury Protection (PIP) and Property Damage Liability (PDL) insurance, each with a minimum coverage of $10,000.

The exception to the lack of a bodily injury liability requirement applies if you've been in a car accident or committed certain traffic offenses. These requirements are set out in the Florida Financial Responsibility Law. This law states that an owner or operator of a vehicle involved in an accident with at least $500 of property damage or bodily injuries must be “financially responsible” or have their license and registration suspended. The law gives three methods of meeting the financial responsibility requirement. The easiest method is to have an insurance policy with at least $10,000 per person and $20,000 per accident in bodily injury liability coverage at the time of the accident. The other two options are much harder for most people. One is to post a $30,000 bond, and the other is to “self-insure,” which requires demonstrating at least $40,000 of unencumbered assets.

Another exception is for people who have been found guilty or pleaded no contest to a DUI charge. They must have bodily injury liability insurance of $100,000 per person and $300,000 per accident for at least three years after the return of their driving privileges.

If you cause a car accident and you 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.

While not required, it makes sense to have at least the minimum bodily injury coverage of $10,000 per person and $20,000 per accident in Florida. Otherwise, you could lose your license and have to pay a lot of money.

You definitely want bodily injury liability insurance if you drive in Florida or any other state, even though it is not required. There are two main reasons for this. First, if you cause a car accident and someone else is injured, they can sue you for their damages. Bodily injury coverage is the type of coverage that will pay them and protect you and your assets. If you have BI coverage, your insurer will also pay the costs for an attorney to defend you against the lawsuit.

The second reason you want BI coverage is that insurers will only sell you Uninsured Motorist coverage if you also have BI coverage. Uninsured Motorist (UM) coverage protects you if someone else injures you and they don’t have adequate bodily injury coverage. Since Florida doesn’t require bodily injury coverage, many Florida drivers do not have adequate coverage to protect you. Thus, you have to protect yourself by purchasing UM coverage.

A recent study by the Insurance Research Council found that Florida has the highest percentage of uninsured motorists in the country. Over 26% of drivers on Florida roads have no insurance. Of the remaining 75%, 25% have the minimum required coverage, which does not include any bodily injury liability coverage. So, 50% of drivers in Florida have no coverage that will protect you if they injure you. This is why you must get uninsured motorist coverage to protect yourself.

Collision and comprehensive insurance

Collision Insurance

Collision insurance covers damage to your vehicle, whether or not you were at fault. It covers a variety of situations, including damage to your vehicle caused by a collision with another vehicle, collisions with objects like trees and guardrails, and single-car accidents. Collision coverage is a type of insurance that protects the value of your vehicle. It will not cover the cost of damage to other vehicles, people, or things. Collision insurance policies usually include a deductible, which is the amount of money you will have to pay out of pocket for damage to your vehicle before the insurance company pays the rest, up to your limit.

Comprehensive Insurance

Comprehensive insurance is another type of insurance that covers damage to your vehicle, but only in situations that are not collision-related. Comprehensive insurance would cover damage to your vehicle from things like vandalism, theft, falling objects, animal impacts, hail, fire, and natural disasters. Comprehensive coverage is particularly important if you live in an area with a high rate of theft, vandalism, and other crimes, or if you have a newer vehicle.

When to Have Both Comprehensive and Collision Insurance

Collision and comprehensive coverage are not required in Florida, but if you want the peace of mind of knowing that damage to your vehicle will be paid for in all circumstances, then you should purchase both. This is especially important in Florida, which has a high number of uninsured drivers. If one of them damages your vehicle, you will have to pay for the damage yourself unless you have collision coverage.

When to Drop Collision and Comprehensive Insurance

You may have heard of the 10% rule, which is a rule of thumb for deciding whether to get collision and comprehensive insurance. It says that if you're paying more than 10% of your car's value for collision and comprehensive insurance premiums, you might want to drop the coverage. This is because if your car is old and has a low value, the insurance company will only pay you that low value if it's totaled, which won't be enough to buy a new car.

Florida Insurance Requirements

Before you register 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, no matter who caused the crash. PDL coverage pays for damage to another person’s property caused by you or someone else driving your insured vehicle.

Frequently asked questions