Auto Insurance Coverage In Florida: What You Need To Know

Florida is one of the most expensive states for auto insurance, and for good reason. It is the third-busiest state in the country, meaning there are more drivers on the road and a higher chance of accidents occurring. Florida requires drivers to meet minimum auto insurance requirements, but these are often not enough to cover all damages in the event of a major accident. So, what auto insurance coverage should you get in Florida?

Personal Injury Protection (PIP)

PIP coverage pays for 80% of crash-related medical costs, up to the $10,000 limit per covered person. This includes expenses such as ambulance rides, hospital bills, doctor visits, and dental work. It is important to note that initial care must be received within 14 days of the accident for these medical expenses to be covered.

In addition to medical expenses, PIP coverage also provides compensation for lost wages. It pays 60% of your regular income, up to the $10,000 limit, if you are unable to work due to injuries from the accident. PIP coverage also includes replacement services, such as hiring someone to do household chores, provide childcare, or drive. In the event of a death, PIP coverage offers a $5,000 compensation, which is separate from the $10,000 limit.

PIP insurance not only covers the driver but also any passengers or pedestrians involved in the accident. It also extends to the policyholder's children if they are injured while riding a school bus or as passengers in another vehicle. If a passenger in the car has their own PIP insurance policy, their injuries will be covered by their own policy.

While PIP coverage is essential, it may not be sufficient for serious accidents. The $10,000 limit can be quickly exceeded by medical bills and lost wages. Therefore, it is recommended to consider additional coverage or other types of insurance to ensure adequate protection in the event of a significant accident.

Property Damage Liability (PD)

In Florida, PD insurance is a mandatory type of auto insurance coverage. The minimum amount of PD coverage required by law in Florida is $10,000. This means that if you are responsible for an accident that causes $10,000 or less in damages to another person's property, your insurance policy will cover the damages. However, it's important to note that $10,000 may not be enough to cover the costs of a serious accident, and you may be personally responsible for paying the difference. As such, many drivers choose to purchase additional PD coverage to ensure they are fully protected.

When deciding on the amount of PD coverage to get, it's important to consider your budget, the value of your assets, and your driving history. If you have significant assets, such as a home or other valuable property, purchasing additional PD coverage can help protect your assets in the event of an accident. Additionally, if you have a history of accidents or traffic violations, you may want to consider higher coverage limits to protect yourself from financial liability.

It's worth noting that PD insurance does not cover damages to your own vehicle or property. If you want coverage for your own vehicle or property, you will need to purchase additional insurance, such as collision coverage or comprehensive coverage.

Bodily Injury Liability (BI)

Firstly, if you have been convicted of a DUI, BI insurance is mandatory. The amount of coverage required depends on the date of the conviction. If the conviction was on or before October 1, 2007, the minimum requirement is $10,000 per person and $20,000 per incident. If the conviction was after October 1, 2007, the minimum requirement increases to $100,000 per person and $300,000 per accident, with a minimum of $50,000 in property damage coverage. This coverage must be maintained for three years after the reinstatement of your license.

Secondly, BI insurance is required for taxis and other specific occupations. This is to ensure that passengers and members of the public are protected in case of an injury accident caused by the driver.

While BI insurance is not mandatory for most Florida drivers, it is highly recommended. If you cause a car accident and are found to be at fault, BI insurance will cover the injuries and damages of the other party. Without BI insurance, you could be held personally liable for these expenses, which can quickly accumulate and become overwhelming. Additionally, if you are sued for injuries caused in an accident, your BI insurance will cover the costs of your legal defense.

The recommended amount of BI coverage varies depending on your assets and the level of protection you desire. A minimum of $10,000 per person and $20,000 per accident is advised to protect yourself from losing your license. However, this may not be sufficient to cover all expenses resulting from an accident. Ideally, you should aim for $100,000 per person and $300,000 per accident, or even higher if you can afford it. This higher level of coverage will also allow you to purchase an equal amount of Uninsured Motorist (UM) coverage, protecting you in case you are injured by an underinsured or uninsured driver, which is a common occurrence in Florida.

Uninsured/Underinsured Motorist (UM) Coverage

UM coverage can be used for family members, whether they were in your vehicle or not, and it also applies to passengers of your vehicle. It covers hit-and-run accidents, phantom vehicle collisions, and when you or your family members are hit as pedestrians or cyclists. UM coverage pays for lost wages, sickness, bodily injury, medical expenses, and diseases resulting from the motor vehicle collision.

There are two types of UM coverage: split limit and combined single limit. A split limit policy will allot different amounts depending on the number of people injured in the collision, while a combined single limit policy provides a fixed amount regardless of the number of victims.

When deciding whether to opt for UM coverage, consider the following:

• The high number of uninsured drivers in Florida (around 24%) means there is a significant risk of being involved in an accident with an uninsured driver.
• Medical care in the US is expensive, and your own car insurance policy may not be sufficient to cover your damages.
• If you have good health insurance, you may not need UM coverage for medical expenses, but it can still provide benefits such as lost wages, pain and suffering compensation, and funeral expenses.
• UM coverage can provide peace of mind and financial security, ensuring you are not left with significant out-of-pocket expenses in the event of an accident with an uninsured or underinsured driver.

In summary, while UM coverage is not mandatory in Florida, it is a valuable form of protection that can provide financial security and peace of mind in the event of an accident with an uninsured or underinsured driver. The high number of uninsured drivers in the state and the potential for costly medical expenses make UM coverage a worthwhile consideration for Florida drivers.

Collision Coverage

Although collision coverage is not required by law in Florida, it is highly recommended for peace of mind and to protect the value of your vehicle. One in eight drivers in Florida is uninsured, so collision coverage can provide financial protection in the event of an accident. The average car repair bill associated with an accident in Florida is $2,452, so collision coverage can save you money by providing a predictable deductible rather than facing costly repairs.

If you are interested in purchasing collision coverage, contact your auto insurance company to discuss the different types of collision insurance policies available and choose the right one for your needs.

Frequently asked questions