Florida: Mandatory Auto Insurance Coverage

Florida's minimum auto insurance requirements are $10,000 in personal injury protection (PIP) and $10,000 in property damage liability (PDL) coverage. This means that if you are in an accident, your insurance will cover 80% of all necessary and reasonable medical expenses up to $10,000, and pay for damage to another person's property up to $10,000. Florida is a no-fault state, so these coverages apply regardless of who caused the accident.

Florida's no-fault insurance system

Florida is one of 12 no-fault states in the US. This means that, regardless of who is at fault, each driver's insurance covers injuries or medical expenses for themselves and their passengers. In other words, each person pays for their own accident expenses.

In these cases, you would be required to pay for extra damages if the court ruled that you acted negligently or caused injury through negligence. So, while insurance laws in Florida only require property liability and personal injury protection, it’s always a good idea to carry more coverage than the minimum requirement. That way, you will have extra protection if you’re sued for auto accident damages.

Personal injury protection (PIP) insurance is often called "no-fault" coverage because it covers and pays out claims on accidents regardless of who is at fault. PIP covers 80% of all necessary and reasonable medical expenses up to a minimum of $10,000 resulting from a covered injury, no matter who caused the crash.

Property damage liability insurance

The minimum amount of property damage liability insurance required in Florida is $10,000. This means that if you are responsible for an accident that causes $10,000 or less in damage to another person's property, your insurance policy will cover the damages. However, it is important to note that $10,000 may not be sufficient to cover all costs in a severe collision. If the damages exceed your property damage liability coverage, you may be held personally liable for paying the difference. As a result, many drivers opt to increase their coverage limit to ensure they are fully protected in the event of an accident.

When determining the amount of property damage liability insurance you need, consider factors such as the value of your assets, your budget, and your driving history. If you have significant assets, purchasing additional coverage can provide extra protection in the event of an accident. Your budget and driving history will also influence your decision on the level of coverage that is right for you.

Personal injury protection (PIP) insurance

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 caused the accident. Florida drivers are required to have Personal Injury Protection (PIP), also called no-fault insurance. PIP coverage pays for up to 80% of your medical bills and lost income after a car accident, regardless of who caused the crash. However, you must file a PIP claim within 2 weeks of the accident.

PIP covers medical costs, lost wages, and death benefits. It covers 80% of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury. If you have injuries that cost $10,000, PIP will only pay for $8,000 of that. If your injury is not considered an emergency, you will only be entitled to $2,500 in benefits. If you are injured in an accident and become disabled, PIP will pay for 60% of your lost wages, subject to a $10,000 limit. This will also cover the costs of paying someone else for services you can no longer perform yourself, such as daily chores.

If the policyholder is killed, PIP would pay up to $5,000 for their funeral and burial expenses, in addition to the other benefits. In Florida, you can only get PIP coverage of $10,000, which adds about $300 to the cost of an annual car insurance policy.

Florida has strict rules for filing a PIP claim. The most important is that treatment for any injuries must occur within two weeks of the car accident for the insurer to reimburse you. Your claim will not be accepted after this period. Due to insurance fraud in Florida, your insurance company has up to 60 days to investigate your claim but must pay for your damages within 30 days, even if there is suspicion of fraud.

Collision insurance

While not required by law, collision insurance is usually required by lenders if you are financing or leasing your car. It is important to note that collision insurance does not cover damage to a vehicle that is not related to driving, damage to another vehicle, or medical bills.

When purchasing collision coverage, you will need to select a deductible amount, which is the amount you will need to pay before the policy takes over. This can be as low as $100 to $200, but most insurers recommend starting at $500.

The average car repair bill in Florida associated with an accident is $2,452, so having collision coverage can provide peace of mind and help you avoid substantial repair bills.

Comprehensive insurance

The cost of comprehensive insurance will depend on your chosen insurer, the province you live in, and the amount of your premium and deductible. As it is typically an add-on to your insurance, it will incur additional costs and be subject to a deductible.

When choosing your deductible, consider how much financial risk you are willing to accept in an accident. A higher deductible will result in a cheaper insurance premium, while a lower deductible will increase the cost of your premium.

Frequently asked questions