Are You Carrying Enough Insurance to Meet Florida’s Minimum Requirements?
Some things just naturally go together like peanut butter and jelly. Insurance and vehicles are another example. Auto insurance isn’t an option and it’s not a luxury. Like all other states, car insurance is a requirement in Florida.
Carrying insurance should also be a no-brainer if you want to protect your property. So, what are Florida’s minimum auto insurance requirements? The penalties for not carrying insurance can be steep and range from fines to possible vehicle impoundment and even the temporary loss of your driving privileges. Insurance can also protect you financially if you’re involved in a vehicle accident.
Now that you know why you should have auto insurance, here’s what you should know about Florida’s minimum requirements.
Minimum Insurance Requirements in Florida
Before we get into the Sunshine State’s minimum car insurance requirements, it helps to understand no-fault laws. Florida follows no-fault insurance rules and this can affect the type of car insurance you decide to carry. In a no-fault state, everyone files a claim for their damages with their insurance provider. This applies whether you’re responsible or not liable for the car accident.
Florida, and a few other states, choose to follow no-fault rules for a simple reason. The idea behind no-fault insurance is to make it easier for accident victims to recover some compensation for their damages. Lawmakers reason it’s faster and easier to file a claim with your insurance provider instead of against the at-fault drivers. Sometimes, it is easier to recover compensation from your insurance provider but not always.
The type of insurance you’re carrying can also affect your ability to file a claim. With that being said, here’s a look at the minimum insurance requirements for all drivers with vehicles registered in Florida.
Minimum Property Damage Liability Insurance
All drivers must at least carry the state’s minimum property damage liability (PDL) insurance. This type of insurance only covers damage to the other driver’s vehicles when you’re liable for the accident. This type of insurance doesn’t cover any damage to your vehicle, which is something you may want to consider, especially in no-fault insurance states.
The only way for you to recover damages to your property is to file a third-party claim against the other driver’s insurance provider. However, you can only file a third-party claim if you’re not more than 50% responsible for the accident.
Along with following no-fault insurance rules, Florida is also a comparative negligence state, which means more than one party can be liable for an accident. Your compensation amount is reduced by your percentage of the blame. If your percentage of the blame is more than 50%, you can only rely on your insurance provider for compensation.
Florida requires all drivers to have at least $10,000 in PDL insurance. This is $10,000 per vehicle involved in the accident except for yours. Remember, liability insurance doesn’t cover your property damage.
Minimum Personal Injury Protection Insurance
Since your PDL policy only covers property damage, and injuries are usually present in auto accidents, the state also requires drivers to carry personal injury proportion (PIP) insurance.
PIP covers medical expenses, up to the policy’s cap or 80% of costs. PIP can also cover lost income if your injuries are preventing you from returning to work. Caps also apply to this part of the coverage. Florida’s minimum PIP requirements are $10,000 per person injured in the accident. This type of insurance covers your medical expenses, along with those of any passengers in your vehicle.
Since PIP only covers at most 80% of medical expenses and lost wages, you’re probably going to have outstanding costs. This is when you can file a personal injury claim against the at-fault driver. Don’t forget about comparative negligence. This rule also applies when you’re trying to recover damages relating to medical costs and lost income.
If you’re wondering about your non-economic damages like mental anguish, pain, and suffering. You will need to file a claim against the at-fault driver insurance provider. Neither PDL nor PIP insurance covers non-economic losses.
Other Types of Insurance to Consider
Going with the state’s minimum insurance requirements is an affordable option that also keeps you legal on Florida roads. However, basic liability and minimum PIP coverage may not be enough to cover your damages after an accident.
Have you thought about what happens if the other driver isn’t insured or is underinsured? What about if a passenger injured in your vehicle files a third-party lawsuit against you? You have additional insurance options beyond the state’s minimum requirements.
Bodily Injury Liability Insurance
Bodily Injury (BI) Liability Insurance protects your financial assets if an injured party files a lawsuit against you after an accident. Even though PIP will pick up some of the tab, at least 20% of their medical costs are still outstanding.
BI liability insurance kicks in if the other driver or anyone else injured in the accident files a lawsuit against you to recover their medical costs. How much the policy pays depends on the cap since most drivers decide to carry around $100,000 in BI insurance.
Collision and Comprehensive Insurance
These two types of insurance are often combined but you can go with one or the other. Collision insurance covers damages to your vehicle if you’re in an accident.
Remember, a simple liability policy only covers damages to the other involved vehicle. Even if you’re not responsible for causing the accident, a liability policy still won’t cover your property damage costs.
Comprehensive coverage takes care of damage to your vehicle caused by theft, vandalism, and natural disasters. Since Florida’s weather can be a little unpredictable, this type of coverage is something all drivers should consider.
Uninsured and Underinsured Motorist Coverage
Uninsured and underinsured auto insurance gives you some extra protection. If your vehicle is damaged by an uninsured driver, your repairs are still usually covered. Even with the state’s minimum insurance requirements, not all drivers carry PIP or PDL.
If your property damage exceeds the cap on the at-fault driver’s policy, an underinsured motorist policy can cover the difference.
While you must carry at least the state’s minimum insurance requirements, it may be a good idea to consider increasing your coverage. This way, you’re financially protected if you’re involved in a car accident.
