Auto Insurance: Florida's Minimum Coverage Requirements Explained

Florida is one of 12 no-fault states in the US, meaning that each driver's insurance covers injuries or medical expenses for them and their passengers, regardless of who is at fault. Florida requires a minimum of $10,000 in personal injury protection (PIP) and $10,000 in property damage liability (PDL) coverage to register a vehicle with at least four wheels. This insurance must be purchased from a carrier licensed to do business in Florida, and continuous coverage is mandatory throughout the registration period.

Personal Injury Protection (PIP)

Florida is a no-fault state, meaning that each person purchases insurance for their own benefit. When a car accident occurs, they must turn to their own insurance company to recover their losses, even if they are responsible for causing the crash. This is where Personal Injury Protection (PIP) comes in.

PIP insurance is required under Florida state law, and benefits are paid through your insurance company. Florida motorists must have PIP insurance to drive. This means that every person who registers a vehicle in the state must have PIP coverage that pays at least $10,000 for qualifying injuries and damages to any person hurt in a vehicle crash, regardless of who is at fault.

PIP insurance covers losses that include medical bills and lost wages if you are unable to work. If you need replacement services, you can use the funds to hire someone to do household chores, provide childcare, or drive. PIP coverage pays 80% of medical bills incurred due to the crash up to the policy limit, and 60% of lost wages if the injured individual cannot work. If a person needs replacement services, PIP coverage pays 100% for these losses.

In addition to covering the policyholder, PIP insurance also covers their children. The insurance covers children in the vehicle and also when they ride the school bus. If there are individuals in the vehicle at the time of the crash who don't own a vehicle and therefore don't have their own PIP coverage, they may be able to recover compensation under the policyholder's policy.

To file a PIP claim, you need to get started on your claim as soon as possible. Here are the steps to follow:

• Report the collision by contacting your insurance company.
• While on the phone with your insurance company, make sure your plan includes PIP coverage.
• Ask the insurance representative to provide you with your claim number and the claim office's contact information.
• Contact the claims office and talk to the insurance adjuster for your case.
• Request that the adjuster provides you with a PIP application, a salary verification form, and a physician's report as soon as possible.
• Fill out your PIP application as soon as possible.
• Request that your physician fills out the Attending Physicians Report.
• If you missed work due to your injury, request that your employer fill out the Salary Verification Form.
• Return both the Attending Physicians Report and Salary Verification Form to your adjuster.
• Provide your healthcare providers with your claim number, adjuster name, and claim office contact information.
• Authorize your healthcare providers to bill your PIP directly.

It's important to act quickly, as there is a limited window for qualifying for PIP coverage. Failure to act may result in forfeiting your right to seek compensation.

Property Damage Liability (PDL)

The minimum amount of PDL coverage required in Florida is $10,000. This means that if you are at fault for an accident that causes up to $10,000 worth of damage to another person's property, your insurance policy will cover the cost of repairs. However, it is important to note that the minimum coverage may not be sufficient to cover the cost of damages in a serious accident. If the damages exceed your PDL coverage limit, you may be personally responsible for paying the difference. Therefore, many drivers choose to purchase additional PDL coverage to ensure they are fully protected.

When deciding how much PDL coverage to purchase, there are several factors to consider. Firstly, you should take into account the value of your assets. If you own a home or have other valuable property, you may want to consider purchasing additional PDL coverage to protect your assets in the event of an accident. Secondly, your budget will play a role in determining how much coverage you can afford. Finally, your driving history should be considered. If you have a history of accidents or traffic violations, you may want to opt for higher PDL coverage limits to protect yourself from financial liability.

While PDL coverage is an essential form of protection, it is important to be aware of its limitations. PDL coverage only applies to damage caused to someone else's property and does not cover damage to your own vehicle or property. Therefore, if you want coverage for your own vehicle, you will need to purchase additional insurance, such as collision coverage or comprehensive coverage. Additionally, PDL coverage does not include protection for injuries sustained by you or your passengers in an accident. To ensure you have adequate coverage for medical expenses, you may want to consider purchasing personal injury protection (PIP) coverage or medical payments coverage.

No-fault insurance

Pros of No-Fault Insurance

There are several advantages to Florida's no-fault insurance system:

• If an uninsured driver injures you, you don’t have to worry about their inability to cover your injuries.
• If a driver injures you in a hit-and-run accident, you’d still be covered.
• Claims are likely to be paid much more quickly as there is no need to establish blame.
• No-fault insurance also offers coverage for lost wages and death benefits for covered individuals who died as a result of the accident.

Cons of No-Fault Insurance

There are also some drawbacks to Florida's no-fault insurance system:

• Compensation is limited. For example, 80% of medical expenses and 60% of lost income is covered by no-fault insurance. While this is generous coverage for minor injuries, there is still a substantial amount of uncovered expenses if injuries are extreme.
• Your insurance premiums will likely increase after an accident, even if you weren't at fault.
• There is a lack of accountability as determining who is at fault is not a priority in a no-fault insurance state.

Exceptions to No-Fault Insurance

There are a few exceptions to no-fault insurance, all of which depend on whether the injuries sustained are considered "serious". In Florida, serious injuries include:

• Significant and permanent loss of an important bodily function.
• Significant and permanent scarring or disfigurement.

In these cases, you may be able to pursue a liability claim against the at-fault driver outside of your personal injury protection.

It is important to note that no-fault insurance in Florida is not optional. It is a state-mandated law and you cannot opt-out.

Continuous coverage

Florida requires drivers to have a minimum of $10,000 in property damage liability and $10,000 in personal injury protection to meet the state's minimum auto insurance requirements. Continuous coverage is mandatory for all vehicles with a current Florida registration, even if the vehicle is not being driven or is inoperable. This means that insurance coverage must be maintained throughout the registration period, regardless of the vehicle's location.

If you are a new resident of Florida, you have 10 days to obtain auto insurance. If you are already a resident and plan to cancel your insurance, you must surrender your license plate/tag before doing so to avoid suspension and reinstatement fees.

Failure to maintain continuous coverage may result in the suspension of your driver's license, registration, and/or license plate for a minimum of three years, as well as a reinstatement fee of up to $500.

Proof of insurance

In Florida, you must have proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance before registering a vehicle with at least four wheels. This proof of insurance must be issued by an insurance company licensed in Florida to sell policies or by qualifying for a self-insurance certificate issued by the FLHSMV.

The minimum coverage requirements in Florida are $10,000 for property damage liability per accident and $10,000 for personal injury protection per person.

• Insurance card: This is the most common way to show proof of insurance. The insurance card is provided by your insurance provider when you purchase coverage, and it is typically stored in the driver's glove compartment.
• Declarations page: A copy of the declarations page, also known as the "dec page," that your insurance company issues when you insure your vehicle(s). This page is usually received along with your insurance card.
• Insurance binder: A copy of the insurance binder, which is signed by a licensed insurance agent or broker. Binders are typically temporary and distributed when you first obtain the policy. You may need to show more permanent proof at a later date.
• State-specific insurance program application: A copy of the application for any state-specific insurance program, signed by the insurance agent.
• Letter from the insurance company: A copy of a letter from your insurance company stating the details of your coverage. This letter must generally be signed and on company letterhead.
• Electronic information: You can also show proof of insurance electronically by logging into your account with the insurance company using a smartphone app or laptop and presenting the information to an officer if requested.

It is important to note that these options may vary depending on your insurance provider and the specific requirements of your state. Therefore, it is recommended to check with your insurance company and the Florida Department of Highway Safety and Motor Vehicles (DHSMV) for the most accurate and up-to-date information.

Frequently asked questions