Florida's Vehicle Insurance Law Explained

Florida's vehicle insurance laws are relatively straightforward. Car insurance is legally required, and drivers must carry no-fault insurance before registering and operating their vehicles. Florida is a no-fault state, meaning that each driver, regardless of fault, must carry a minimum of $10,000 in personal injury protection (PIP) insurance to cover medical expenses and lost wages after an accident. Additionally, drivers are required to have a minimum of $10,000 in property damage liability (PDL) insurance, which covers any damage caused to another person's property.

Minimum insurance requirements

In Florida, car insurance is legally required. Before registering a vehicle with at least four wheels, drivers must show proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance.

The minimum amount of no-fault coverage that must be carried is:

• $10,000 in personal injury protection (PIP) coverage
• $10,000 in property damage liability (PDL) coverage

PIP insurance pays for up to 80% of medical expenses resulting from a car accident or vehicle injury, regardless of who was responsible for the accident. PDL insurance covers any damage inflicted on another person's property by the individual driving your vehicle.

While you are only required to carry the minimum coverage listed above, these figures may not be enough to cover the full cost of an accident. For example, if you caused an accident that resulted in $20,000 in medical bills for the other driver, your $10,000 insurance policy would only cover half of those expenses.

Florida's minimum required insurance also does not cover damage to your vehicle. To cover damage to your vehicle if you cause an accident, you can choose to carry physical damage coverage, otherwise known as full coverage. You do not have to carry physical damage coverage to comply with Florida car insurance laws, but your lender may require it if you are financing or leasing your vehicle.

Florida does not require bodily injury liability like most states, which is the coverage type that typically covers other peoples' injuries if you cause an accident. However, if you have been convicted of a DUI, bodily injury liability is required for a period of three years after your license has been reinstated.

Continuous Coverage

Vehicle owners must maintain continuous insurance coverage throughout the registration period, regardless of the car’s location. The only exception is for military members.

Policy Cancellation

Florida drivers who move out-of-state must surrender their vehicle’s license plates and registration before they cancel their insurance policy.

No-fault state

Florida is a no-fault state, which means that in the event of a car accident, both parties turn to their own auto insurance policies to make claims, regardless of who was at fault. This is different from a traditional tort system, where the at-fault driver's insurance company would be responsible for paying for the damages and injuries of the other party.

Under Florida law, all drivers are required to carry Personal Injury Protection (PIP) insurance, which covers medical expenses and lost wages, and Property Damage Liability (PDL) insurance, which covers damage to another person's property. The minimum coverage for both PIP and PDL is $10,000. This means that in the event of an accident, each driver's insurance company will pay for their own medical expenses and lost wages, as well as any damage to another person's property, up to the limit of their policy.

PIP insurance covers 80% of all reasonable and necessary medical expenses, as well as 60% of gross wages and loss of future earning capacity if the insured person is unable to work due to their injuries. It also provides $5,000 in death benefits per covered individual.

While Florida's no-fault system is intended to provide faster and more efficient compensation for accident victims, it has been criticised for leading to an increase in fraudulent insurance claims and inflated medical expenses. In response to these concerns, Florida has implemented several reforms in recent years, including stricter regulations on medical providers and a requirement for accident victims to seek medical treatment within 14 days of an accident to qualify for PIP benefits.

Despite its critics, the no-fault system offers several benefits. It allows accident victims to receive compensation for their injuries and lost wages more quickly and efficiently than in a traditional tort system. It also reduces the need for legal action and helps streamline the process of obtaining compensation, which can be particularly beneficial for those who cannot afford to pursue a legal case.

Insurance purchased from a licensed provider

Florida's insurance laws require that all drivers have certain amounts of car insurance coverage. 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. This insurance must be purchased from an insurance company licensed in Florida to sell policies.

PIP covers 80% of all necessary and reasonable medical expenses up to a minimum of $10,000 resulting from a covered injury, regardless of who caused the crash. PDL coverage pays for damage to another person's property caused by you or someone else driving your insured vehicle. The minimum requirement is $10,000 for each type of insurance.

If you are new to Florida, you can ask your insurance agent to transfer your current insurance to a Florida policy. You must maintain continuous insurance coverage throughout the registration period, regardless of the vehicle's location. The only exception is for military members.

If you are moving out of Florida, you must surrender your vehicle's license plates and registration before you cancel your insurance policy. Failure to maintain insurance coverage in Florida may result in the suspension of your driver's license and registration and a requirement to pay a reinstatement fee of up to $500.

Florida is a no-fault state, which means that your own personal injury protection insurance will cover injuries, regardless of who caused the crash. This is different from most other states, which require bodily injury liability coverage.

Continuous coverage

Florida law requires that all drivers have car insurance coverage. However, as a no-fault state, Florida's requirements are quite different from those of many other states.

Florida insurance laws mandate that vehicle owners must maintain continuous insurance coverage throughout the registration period, regardless of the car's location. The only exception to this rule is for military members stationed out-of-state or overseas.

If you are moving out of Florida, you must surrender your vehicle's license plates and registration before cancelling your insurance policy.

To ensure uninterrupted coverage, it is essential to keep your insurance policy active and up to date, especially if you plan to keep your vehicle registered in Florida even while living elsewhere.

Policy cancellation

Florida law states that an insurance company must give the insured party notice of policy cancellation at least 45 days before the effective date of cancellation. However, if the cancellation is due to non-payment of premium, the insurer must provide at least 10 days' notice, along with the reason for cancellation.

If a policy is cancelled by the insured, the insurer must mail the unearned portion of any premium paid within 30 days of the effective date of the policy cancellation. The insurer may retain up to 10% of the unearned premium and must refund at least 90%. If the insurer cancels the policy, they must refund 100% of the unearned premium within 15 days. If the unearned premium is not mailed within the applicable period, the insurer must pay the insured 8% interest on the amount due. If the unearned premium is not mailed within 45 days after the applicable period, the insured may take legal action against the insurer.

Florida law also outlines specific circumstances under which an insurance policy can be cancelled. These include non-payment of premium, material misrepresentation or fraud, and suspension or revocation of the driver's license or motor vehicle registration of the insured or any other operator residing in the same household.

Additionally, insurance companies are prohibited from failing to renew a policy for reasons based on sex, occupation, marital status, residence, military service, age, race, colour, creed, or national origin of the insured. Furthermore, an insurance company cannot fail to renew a policy for any arbitrary or capricious reason.

Frequently asked questions