Florida is a true paradise all year round. It is not surprising that the state is such a coveted destination for both tourists and new residents, so some questions may arise about Florida auto insurance.
With so many people moving to and exploring Florida, the volume of vehicles on the roads is enormous—day and night. And this, of course, comes with a risk: more car accidents.
To give you an idea, the Florida Highway Safety and Motor Vehicles recorded no fewer than 410,537 accidents in 2021. Of these, 3,737 were fatal, and 252,973 resulted in injuries.
So, if you’re wondering whether it’s mandatory to have car insurance in Florida, the answer is a straightforward “yes.”
Curious to learn more? Keep reading to discover five interesting facts about car insurance in Florida that you may not know.
1. Florida requires minimum coverage on all insurance policies.
Have you ever stopped to think about what kind of car insurance you need to legally drive in Florida? The law only requires two: Personal Injury Protection (PIP) and Property Damage Liability (PDL).
PIP is all about covering your medical bills, but there’s a catch: it only kicks in up to $10,000.
That means if you end up in an accident and rack up a $20,000 hospital bill, you’re stuck paying the extra $10,000 yourself. If you can swing it, it’s smart to bump up that coverage.
Then we have PDL, which takes care of any damage you might cause to other people’s property. Just like PIP, the minimum you need for this coverage is also $10,000.
Now, here’s the kicker: if you hit the road without at least this basic coverage, you could run into some serious trouble. Your license and plates could be suspended for up to three years!
2. There are many options for auto insurance coverage in Florida.
In addition to basic coverage, there are other options that may be worth purchasing:
- Bodily injury liability: protects you if you are found at fault in an accident that causes injuries to others.
- Property damage liability: covers the repair costs for damage to third-party properties.
- Medical payments: helps with medical expenses after an accident.
- Uninsured/underinsured motorist coverage: essential if you get into an accident with someone who has no insurance or whose coverage is inadequate.
- Roadside assistance, towing, and rental vehicles: ideal for those who want to avoid headaches from unexpected issues during trips.
- Windshield repair: to prevent a cracked glass from becoming a major problem.
3. You need to inform your insurance company about your consumption habits.
When you decide to go to your Florida car insurance agency to get a new policy, be prepared for them to ask you a lot of questions.
They’ll want to know how you use your car, how many miles you’ve driven each year, and even who lives with you.
These details will affect how much you pay for your premium. For example, if you’re driving to work one day and get into an accident because you got distracted, you’ll be denied.
If you file a claim claiming that you only use your car for personal purposes, you’ll be denied.
4. Your insurance covers most of the costs.
Let’s unpack how auto insurance works in Florida for a moment. First up is understanding the “no-fault law,” which may seem somewhat convoluted, but is actually pretty simple.
Basically, in cases of car accidents, it doesn’t matter who is at fault; your insurance will take care of your medical bills.
But there’s a catch – this no-fault law is for your medical expenses. If you damage someone’s property inadvertently, the costs thereof shall not be covered.
Suppose now your medical expenses go beyond what your PIP coverage can handle. In such a case, you will be entitled to bring a legal action against the at-fault driver to recover these further costs.
Of course: if you are the one at fault, or if your PIP coverage suffices to the point where it covers all of your expenses, that way will not be available to you.
5. There are many penalties if you choose to drive without insurance in Florida.
Driving without auto insurance is a risk and also illegal. Florida Statute § 316.646 states: Every driver must have valid proof of PIP and PDL insurance to drive an automobile.
This is also a requirement when renewing or registering your vehicle. But if you are caught driving without the required document, what happens? The law won’t make it easy for you:
- Your driver’s license and registration will be suspended for up to three years for a first offense, with a reinstatement fee of not more than $150.
- If repeated within three years of the first offense, your driver’s license and registration will be suspended for an additional three years, with a fee of not more than $250.
- For a third offense, your license and registration will be suspended again for three years, and reinstatement fees could be as high as $500.
Conclusion on Florida auto insurance
Florida auto insurance is not a requirement but a must while driving in the state. As many as hundreds of thousands of crashes occur yearly and the risk of injury and property damage is real; so insurance is a smart decision even if it is mandated.
By understanding the different coverage options, including required Personal Injury Protection (PIP) and Property Damage Liability (PDL), as well as available add on options such as bodily injury liability and uninsured motorist coverage, Florida drivers can learn how to protect themselves, as well as their passengers and anyone else on the road. Along with knowing what’s covered, understanding how important accurate information is when applying for insurance, and the consequences of driving without coverage, it’s great to be informed.
The citizens, tourists, and Florida business in this high traffic environment, know car insurance is peace of mind and financial security for this great Sunshine state.
