Auto Insurance Costs In Florida: What's The Deal?

Florida is one of the more expensive states for auto insurance, with a range of factors influencing the cost of coverage. The state has a ''no-fault' liability policy, meaning that each driver's insurance covers injuries or medical expenses for them and their passengers, regardless of who is at fault. As a result, Florida drivers are required to carry a minimum of $10,000 in personal injury protection (PIP) and property damage liability (PDL) coverage. This means that insurance companies in Florida often have to pay out for their own drivers, as well as any third-party damage, which can lead to higher premiums.

Personal Injury Protection (PIP)

PIP is designed to keep small injury cases out of the courtroom. As long as the total of your medical bills and lost wages are under the limits of your PIP coverage, there is no need to go to court for compensation. The insurance company will simply pay for it. PIP covers the cost of any hospital admission, emergency room visits, and follow-up visits to the healthcare provider. It also covers lost wages if you are unable to work and provides accidental death benefits. In some cases, if you are seriously injured, the policy will also compensate you for your inability to perform daily living activities.

Florida is one of 16 states that require licensed drivers with registered vehicles to carry a minimum amount of PIP coverage. This is in contrast to most US states, where obtaining PIP insurance is not mandatory. In Florida, you must obtain a Florida insurance policy if you are a non-resident who accepts employment in Florida, or enrols children in a Florida public school.

It is important to note that PIP has specific requirements and limitations. For example, treatment for any injuries must occur within two weeks of the accident for PIP reimbursement to be eligible. Additionally, PIP only covers up to $10,000 in medical costs, which may not be sufficient to cover all expenses resulting from a serious accident. As such, it is recommended to have additional insurance coverage, such as bodily injury liability, collision, or comprehensive insurance.

Property Damage Liability (PDL)

It is important to note that the PDL coverage only applies to damages to someone else's property and does not include damages to the driver's own vehicle or property. If a driver wants coverage for their own vehicle or property, they will need to purchase additional insurance, such as collision coverage or comprehensive coverage.

While the minimum PDL coverage in Florida is $10,000, this amount may not be sufficient to cover the costs of damages in a serious accident. If the damages exceed the PDL coverage limit, the driver may be personally responsible for paying the difference. Therefore, it is advisable for drivers to consider purchasing additional PDL coverage to ensure they are adequately protected in the event of a significant collision.

The decision to purchase additional PDL coverage depends on various factors, including the value of the driver's assets, their budget, and their driving history. If a driver has significant assets, such as a home or other valuable property, purchasing extra PDL coverage can provide added protection in the event of an accident. Similarly, drivers with a history of accidents or traffic violations may want to consider higher PDL coverage to safeguard themselves from financial liability.

PDL insurance is an essential component of auto insurance in Florida, ensuring that all drivers are financially responsible for any damage they may cause to another person's property in a car accident. By understanding the coverage limits and options, drivers can make informed decisions about their insurance choices and protect themselves from potential financial burdens.

Bodily Injury Liability (BIL)

In Florida, Bodily Injury Liability (BIL) insurance is not generally required. However, it is highly recommended that drivers add this coverage to their auto insurance policies. BIL insurance covers injuries and deaths caused by the policyholder's negligence. For example, if you are at fault in a car accident and someone else is injured, that person would be covered by your BIL insurance. This type of insurance also covers the cost of legal representation if you are sued. While Florida is a no-fault state, meaning each person pays for their own accident expenses, an injured party could still sue for damages if they are extensive or exceed what your minimum insurance covers. In this case, BIL insurance would protect you from paying these damages out-of-pocket.

There are, however, some circumstances in which BIL insurance is required in Florida. If you have been convicted of a DUI, you must 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.

Another instance in which BIL insurance is required is outlined in the Florida Financial Responsibility Law. This law states that if you are in an accident with at least $500 of property damage or bodily injuries, you must be "financially responsible" or have your license and registration suspended. One way to meet this financial responsibility requirement is to have an insurance policy with a minimum of $10,000 per person and $20,000 per accident in BIL coverage at the time of the accident. The other options are to post a $30,000 bond or demonstrate at least $40,000 of unencumbered assets, which are more difficult for most people.

While BIL insurance is not mandatory in Florida, it is a good idea to have at least the minimum level of coverage to protect yourself financially in the event of an accident.

Collision Insurance

If you are leasing or financing your vehicle, you may be required to purchase collision insurance. It is also a good idea to purchase this insurance if you want to avoid potentially large repair bills. The average car repair bill in Florida is $2,452, whereas the average cost of adding collision coverage to an existing policy is $234 per year.

Comprehensive Insurance

Comprehensive auto insurance is an optional form of insurance in Florida that covers damage to your vehicle caused by factors other than a collision. This includes damage from natural disasters, theft, vandalism, and accidents such as a tree falling on your car. It is important to note that comprehensive insurance does not cover medical expenses or damage to another person's vehicle.

Unlike collision insurance, which covers the cost of repairs or replacement of your vehicle in the event of a collision, comprehensive insurance does not have a limit. The maximum amount it will pay is determined by the actual cash worth of your vehicle. You are responsible for paying your chosen deductible, which can range from $100 to $2,000, depending on the value of your car.

While not legally required, lenders may frequently request comprehensive insurance if your vehicle is leased or not entirely paid off. Additionally, if you have a loan on your vehicle, the lender may require you to have comprehensive insurance until the loan is paid off. Comprehensive insurance can provide peace of mind and protect you from unexpected expenses.

In summary, comprehensive auto insurance in Florida is an optional but important coverage to consider. It protects your vehicle from damage caused by events other than collisions, including natural disasters, theft, and vandalism. The cost of comprehensive insurance will depend on the value of your vehicle, and it is a smart way to safeguard yourself from financial loss due to unforeseen circumstances.

Frequently asked questions