Auto Liability Insurance: Florida's Coverage Basics Explained

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 is at fault. In Florida, drivers are required to have a minimum of $10,000 in both personal injury protection and property damage liability coverage. Personal injury protection (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. Property damage liability (PDL) pays for damage to another person's property caused by the policyholder or someone else driving their insured vehicle.

Personal Injury Protection (PIP)

PIP covers the policyholder, passengers in the car, pedestrians, and bicyclists. It also covers the policyholder if they are injured as a passenger in another vehicle or if they are struck by a vehicle while riding a bicycle or walking.

In Florida, you can choose whether your PIP covers just yourself or other residents in your household. The minimum coverage in Florida is $10,000 per accident for PIP.

PIP is also known as 'no-fault' insurance because it pays for the expenses of the policyholder and their passengers, regardless of who is at fault in the accident. This reduces the necessity of suing for reimbursement of medical and related bills. However, Florida still allows drivers to sue for medical costs over $10,000, even if the injury is not severe.

To be eligible for PIP benefits, you must file a claim within two weeks of the crash and receive initial services and care within 14 days.

Property Damage Liability (PDL)

It is important to note that PDL coverage does not apply to damages to your own vehicle or other personal property. If you want coverage for your own property, you will need to purchase additional insurance, such as collision coverage or comprehensive coverage. The minimum PDL coverage may also not be sufficient to cover all costs in a serious accident, and you may be held financially responsible for any damages that exceed your PDL limit. For this reason, many drivers in Florida choose to purchase additional PDL coverage to ensure they are fully protected.

The amount of PDL coverage you need depends on your budget and assets. If you have significant assets, such as a home or other valuable property, you may want to consider purchasing more PDL coverage to protect yourself financially in the event of a car accident. Your driving history is another factor to consider when deciding on the amount of PDL coverage. If you have a history of accidents or traffic violations, you may want to opt for higher coverage to protect yourself from financial liability.

PDL insurance in Florida has both pros and cons. On the positive side, it is required by law, ensuring that all drivers are financially responsible for any damage they may cause in an accident. PDL coverage is also often affordable and provides protection for your assets. Additionally, it covers a wide range of property, including vehicles, buildings, and landscaping. However, one of the limitations of PDL coverage is that it only applies to damages to someone else's property and not to your own. Another drawback is that the minimum PDL coverage may not be sufficient for serious accidents, leaving you liable for any excess costs.

Bodily Injury Liability (BIL)

BIL is not generally required in Florida. However, if a driver has been convicted of a DUI, they are required to have BIL coverage for a period of three years after their license has been reinstated. In this case, the driver 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 is also required for vehicles registered as taxis in Florida. In this case, the BIL coverage must be $125,000 per person, $250,000 per occurrence, and $50,000 for property damage liability (PDL) coverage.

Although BIL is not mandatory in most cases, it is recommended that drivers have at least $10,000 of BIL insurance in Florida. This is because, in the event of a car accident, BIL coverage can protect drivers from being sued for damages. Additionally, insurers will only sell Uninsured Motorist (UM) coverage if the driver also has BIL coverage. UM coverage is important in Florida, as the state has a high percentage of uninsured motorists.

Florida's Financial Responsibility Law requires bodily injury liability coverage of $10,000 per person and $20,000 per accident. However, car accident lawyers recommend purchasing BIL coverage of at least $100,000 per person and $300,000 per accident if possible. This higher level of coverage will provide better protection in the event of serious injuries or permanent disability resulting from a car accident.

Collision insurance

Collision coverage typically has a total limit, which is the maximum amount the insurer will pay. This limit is often the "actual cash value" of your vehicle, which includes a subtraction of value for depreciation. Your insurance company will determine the actual cash value of your vehicle and its parts. You can add an endorsement to your policy that specifies the use of new or original equipment manufacturer (OEM) parts.

If your car is badly damaged and the cost of repairs exceeds its actual cash value, the insurance company will only pay you the actual cash value, leaving you without a vehicle. In the case of newer cars, the insurance payout may not be enough to cover the remaining loan amount. To make up the difference, you can purchase "gap insurance."

While collision insurance is not mandatory, it is essential for protecting the value of your vehicle and ensuring you can get back on the road quickly after an accident.

Comprehensive insurance

• Falling objects, such as tree limbs
• Lightning from thunderstorms, hurricanes, etc.
• Vandalism and other cases of civil disobedience (e.g., riots)
• Fire, theft, windstorms, and floods
• Damage from collisions with animals
• Damage caused by falling objects

The cost of comprehensive insurance will depend on your insurer, the province in which you live, and the amount of your premium and deductible. While it may increase your monthly premium, comprehensive insurance can provide valuable financial protection in the event of auto theft, vandalism, or natural disasters.

In Florida, comprehensive insurance is an important consideration for vehicle owners. While not mandatory, it offers protection against a range of incidents that are common in the state. By understanding the benefits and limitations of comprehensive insurance, vehicle owners can make informed decisions about their coverage options.

Frequently asked questions