Florida Auto Insurance Basics: What You Need To Know

Florida's basic auto insurance requirements are among the most minimal in the US. Before registering a vehicle in Florida, drivers must have a minimum of $10,000 in both personal injury protection (PIP) and property damage liability (PDL) coverage. This means that insurance providers will pay up to $10,000 for property damage and medical costs resulting from a covered injury, regardless of who caused the crash.

Florida is a no-fault state, meaning that each driver's insurance covers injuries or medical expenses for them and their passengers, regardless of who caused the accident.

Florida's minimum coverage requirements

Florida's minimum auto insurance requirements are some of the most minimal in the country. 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 insurance covers the policyholder regardless of whether they are at fault in a crash, up to the limits of their policy. The minimum requirement in Florida is $10,000 per accident. This can cover medical expenses, lost income, and funeral costs for you or your passengers.

Property Damage Liability (PDL)

PDL insurance pays for damage to another person's property that you or someone else driving your insured vehicle causes. The minimum requirement in Florida is $10,000 per accident.

Continuous Coverage

It is important to note that vehicles registered in Florida must maintain continuous coverage even if the vehicle is not being driven or is inoperable. The insurance must be purchased from a carrier licensed to do business in Florida, and the coverage must be maintained throughout the registration period, regardless of the vehicle's location.

Penalties for Driving Without Insurance

Driving without insurance in Florida can result in fines as high as $500, suspension of your driver's license and vehicle registration for up to three years, and higher insurance premiums when you do obtain insurance.

Property damage liability insurance

In Florida, drivers are required to have property damage liability insurance, also known as PDL or PD. This type of insurance covers damage to another person's property caused by the policyholder or someone driving their insured vehicle. The term "property" can refer to another vehicle, but it can also include things like fences, telephone poles, or buildings.

Nearly every state requires drivers to carry some level of PD liability, and it comes with every vehicle insurance policy. In Florida, the minimum PDL insurance required is $10,000. This means that if you are found at fault in an accident, your insurance will cover the damage to others' property up to $10,000.

PD liability insurance may also cover legal expenses related to property damage caused by the policyholder. This is especially important in Florida, as it is a no-fault state, meaning that drivers file claims through their own insurance companies rather than having authorities determine who is at fault.

It is important to note that PDL insurance only covers damage to others' property, not the policyholder's own property. If you want insurance to cover damage to your own vehicle, you would need to purchase collision insurance.

Florida also requires drivers to have personal injury protection (PIP) insurance, which covers medical expenses and lost wages resulting from an accident, regardless of who is at fault. The minimum requirement for PIP insurance in Florida is also $10,000.

In addition to the mandatory PDL and PIP insurance, many Florida drivers choose to purchase other types of optional coverage, such as collision, comprehensive, uninsured motorist, and medical payment insurance, to ensure they are fully protected in the event of an accident.

Personal injury protection insurance

Basic auto insurance in Florida includes Personal Injury Protection (PIP) and Property Damage Liability (PDL) 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.

Florida has strict rules for filing a PIP claim. Treatment for injuries must occur within two weeks of the accident to be eligible for reimbursement. The insurer has up to 60 days to investigate the claim but must pay for damages within 30 days, even if there is suspicion of fraud.

The cost of PIP insurance in Florida is approximately $300 per year, and it is the only option for drivers in the state. To get a cheaper quote, drivers can opt for a higher deductible, up to $1,000, or exclude work income. However, it is important to remember that PIP only covers 80% of medical costs, so drivers may need to pay the remaining 20% out of pocket.

Florida is a no-fault state, which means that drivers file claims through their own insurer, regardless of who is at fault for the accident. PIP insurance is a crucial part of this system, ensuring that individuals can quickly access the funds needed to cover their medical expenses and other costs associated with a car accident.

Collision and comprehensive coverage

Basic auto insurance in Florida includes Personal Injury Protection (PIP) and Property Damage Liability (PDL) insurance. 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. PDL coverage, on the other hand, pays for damage to another person's property caused by the insured vehicle.

While basic auto insurance is mandatory in Florida, it is recommended to opt for a full-coverage policy that includes collision and comprehensive coverage. Collision and comprehensive coverage are optional coverages that protect your vehicle from damage caused by accidents or other incidents. Here's a detailed overview of collision and comprehensive coverage:

Collision Coverage:

Collision coverage protects your vehicle in the event of a collision with another vehicle or object. It covers the cost of repairs or a full replacement of your vehicle, regardless of who is at fault in the accident. For example, if you rear-end another car and need to replace your bumper, collision coverage will come into effect. It's important to note that collision coverage does not cover damage to other vehicles involved in the accident. Additionally, lenders may require collision coverage if you finance or lease your vehicle.

Comprehensive Coverage:

Comprehensive coverage, on the other hand, protects your vehicle from non-collision incidents. It covers damage caused by events such as theft, vandalism, animal damage, falling trees, fire, hail, or natural disasters. For instance, if your car is damaged by a falling tree or vandalized, comprehensive coverage will apply. Like collision coverage, comprehensive coverage is typically required by lenders for leased or financed vehicles.

Choosing Deductibles and Coverage Limits:

When selecting deductibles for collision and comprehensive coverage, you can choose an amount between $100 and $2,000, depending on your preference and ability to pay out of pocket. Generally, a higher deductible results in a lower insurance premium. It's worth noting that the coverage limits for collision and comprehensive coverage are determined by the value of your vehicle and the deductible amounts you select. In the event of a total loss, the maximum payout will be the actual cash value of your vehicle, minus your deductible.

Importance of Collision and Comprehensive Coverage:

While basic auto insurance is mandatory in Florida, adding collision and comprehensive coverage provides additional protection for your vehicle. It's important to consider the value of your car, the likelihood of accidents or incidents, and your financial situation when deciding whether to include collision and comprehensive coverage in your policy. Remember that repairs or replacements can be costly, and having adequate insurance coverage can provide peace of mind and financial protection.

Penalties for driving without insurance

Driving without insurance in Florida is illegal and can result in hefty fines and the loss of driving privileges. Florida has some of the highest numbers of uninsured drivers in the country, with an uninsured motorist rate of over 20%.

First Offense

If you are caught driving without insurance in Florida, your license can be suspended until you provide proof of auto insurance and pay a reinstatement fee of $150. There are no reinstatement fees or penalties if you can prove your new policy began before the suspension date.

Second and Subsequent Offenses

The fees to reinstate your license and vehicle registration after the second and subsequent offenses within three years of the first are higher. The reinstatement fee increases to $250 for the second offense and $500 for the third or any following offense within that time frame.

Accidents

If you are in an accident while driving without insurance in Florida, the consequences can be significant. If you are at fault and the other driver is injured or their car is damaged, you can be held personally liable for the entire cost of the damages. You could also lose your driving privileges until you have paid off the cost of the damages.

Drivers who are uninsured and at fault for an accident may also need an SR-22 certificate, which is a form that an insurance company files with the state to prove that you have insurance before reinstating your license. Under the state's financial responsibility law, you will also need to purchase bodily injury liability coverage on top of the property damage and personal injury protection coverage that's already required.

Other Penalties

If your insurance lapses or you drop it without getting new insurance, the Florida Department of Highway Safety and Motor Vehicles (DHSMV) can suspend your driving privileges, your vehicle license plate, and your registration for up to three years or until you provide proof of insurance, whichever comes first.

Frequently asked questions