Florida Auto Insurance: Minimum Coverage Requirements

Florida has some of the most minimal auto insurance requirements in the country. Before registering a car in Florida, drivers are required to have a minimum of $10,000 in personal injury protection (PIP) and property damage liability (PDL) coverage. This no-fault state mandates that each driver's insurance covers injuries or medical expenses for them and their passengers, regardless of who is at fault.

Florida's minimum coverage requirements

Florida is a no-fault state, which means that each person pays for their own accident expenses, regardless of who is at fault. Florida's minimum coverage requirements are as follows:

• $10,000 for personal injury protection (PIP) per person. This covers 80% of all necessary and reasonable medical expenses resulting from a covered injury, no matter who caused the crash. It also covers lost wages, funeral costs, and other costs such as lost wages, up to a limit of $10,000.
• $10,000 for property damage liability (PDL) per accident. PDL coverage pays for damage to another person's property if you or someone else is driving your insured vehicle.

It's important to note that these are the minimum requirements, and drivers can purchase policies with higher limits. Experts recommend adding bodily injury liability coverage, which protects you if you cause an accident in which people are injured or killed due to your negligence. Collision and comprehensive coverage are also recommended to ensure your vehicle is protected in the event of an accident.

Florida also has specific requirements for non-residents, who must obtain a Florida insurance policy, license plate, and registration if they accept employment in Florida, engage in a profession or trade, or enrol their children in a Florida public school.

Property damage liability insurance

In Florida, drivers are required to have a minimum of $10,000 in property damage liability insurance. This type of insurance covers damage to another person's property caused by you or someone else driving your insured vehicle. The term "property" can include a range of things, such as a fence, telephone pole, building, or another car. It is important to note that this insurance applies even if you are driving someone else's car, as long as you have their permission.

The minimum property damage liability coverage of $10,000 means that the insurance company will pay up to that amount for property damage caused by the insured driver in a single accident, regardless of the number of cars or properties involved. However, it is important to note that this coverage only applies to damage caused to other people's property and does not cover damage to the insured driver's own vehicle.

While the minimum coverage is $10,000, drivers have the option to increase their property damage liability limit. Most auto insurance companies allow drivers to raise their coverage limit up to $100,000 or even higher, depending on the company and the specific policy. This can provide added financial protection in the event of a more severe accident or when multiple properties are involved.

In addition to property damage liability insurance, Florida also requires drivers to have a minimum of $10,000 in personal injury protection insurance. Together, these two types of insurance help ensure that drivers can cover the costs associated with car accidents, protecting both themselves and others on the road.

Personal injury protection insurance

Personal Injury Protection (PIP) insurance is mandatory for Florida drivers and 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 medical costs, lost wages, and death benefits. If the policyholder is killed, PIP would pay up to $5,000 for their funeral and burial expenses, in addition to the other benefits.

PIP insurance is sometimes called "no-fault insurance" because it applies regardless of who is at fault in a crash. This means that if you, your passengers, or family members living with you are injured in a car accident, you must turn to your insurance company first for assistance. PIP insurance typically comes with a deductible, which is the amount you are responsible for before insurance pays out.

In Florida, you have one option for PIP: $10,000 in coverage. This adds about $300 to the cost of an annual car insurance policy. To get a cheaper quote, you can opt for a higher deductible of up to $1,000. You can also choose to exclude work income and whether you want your PIP to cover other residents of your household.

Florida has strict rules for filing a PIP claim. Any treatment for injuries must occur within two weeks of the accident for the claim to be accepted. Due to insurance fraud in the state, insurers have up to 60 days to investigate your claim but must pay for your damages within 30 days, even if there is suspicion of fraud.

While Florida's no-fault insurance system is designed to reduce lawsuits, you can still sue for medical costs over $10,000 or for emotional pain and suffering caused by injuries.

The cost of minimum coverage

The cost of minimum auto insurance coverage in Florida is $82 per month on average. This is based on the state's minimum coverage liability limits of $10,000 for property damage and $10,000 for personal injury protection. The total average cost for this coverage is $988 per year.

The cost of auto insurance varies depending on age, gender, driving record, credit score, vehicle type, and other factors. In Florida, drivers aged 22 to 29 typically pay the highest premiums due to inexperience and a higher risk of accidents.

Florida is a no-fault state, which means that your insurance covers your damages after an accident up to your policy's limit, regardless of who was at fault. This also influences the cost of your premium. While collision and comprehensive coverage are not required by law in Florida, lenders often mandate this protection for leased or financed vehicles.

When considering the cost of auto insurance in Florida, it is important to remember that the state has some of the highest average rates in the country. Florida, Louisiana, and Texas are among the most expensive states for full coverage auto insurance.

Additional coverage options

Florida's minimum auto insurance requirements include $10,000 in property damage liability and $10,000 in personal injury protection. However, there are several additional coverage options that drivers can consider to enhance their financial protection. These optional coverages go beyond the state's minimum requirements and offer more comprehensive protection in the event of an accident or other vehicle-related incidents.

• Collision Insurance: This covers the cost of repairing or replacing your vehicle if it is damaged in a traffic accident, regardless of who is at fault. It is typically required if you lease or finance your car.
• Comprehensive Insurance: This covers damages to your vehicle from non-traffic events, such as natural disasters, fires, theft, or vandalism. In Florida, the deductible for comprehensive insurance is usually waived for repairs to a damaged windshield.
• Uninsured/Underinsured Motorist Coverage: This type of coverage will protect you if you are in an accident with a driver who does not have insurance or does not have sufficient insurance to cover the costs of the accident. It can help pay for medical expenses, lost wages, and repair costs.
• Medical Payments Coverage: This coverage will help pay for medical expenses for you and your passengers after an accident, regardless of who is at fault. It can be useful if your personal injury protection coverage is insufficient or if you have a high health insurance deductible.
• Rental Car Reimbursement: This option covers the cost of a rental car while your vehicle is being repaired after a covered event. It does not include fuel, insurance, or other rental extras.
• Towing and Labor Coverage: This coverage provides assistance if your car breaks down and includes towing services and basic roadside assistance labor costs. However, it does not cover more extensive repairs that need to be done at a garage.
• Custom Parts and Equipment Coverage: This type of coverage is designed to protect any aftermarket enhancements or customisations you have made to your vehicle, such as custom wheels or a stereo system.
• Accidental Death Coverage: This provides a payout if you or your passengers suffer a covered injury or death in a car accident.
• Classic Car Insurance: This type of insurance is tailored for vintage or collector cars and offers agreed-upon values for unique vehicles.

These additional coverage options allow Florida drivers to customise their auto insurance policies to suit their specific needs and provide extra financial protection beyond the state's minimum requirements.

Frequently asked questions