The type of vehicle insurance and the amount of coverage you need to be legally insured varies from state to state. Florida has two automobile insurance requirements with specific minimum limits; however, there are additional coverages available that drivers should consider depending on their driving needs.
Florida’s Minimum Vehicle Insurance Requirements
In Florida, according to the Florida Highways Safety and Motor Vehicles Division, vehicle owners must have the following minimum types of insurance protection:
- $10,000 Personal Injury Protection (PIP): This policy pays up to 80% of all necessary and reasonable medical costs for you and your passengers, no matter who may be responsible for an accident.
- $10,000 Property Damage Liability (PDL): This policy provides coverage for repairing damage to another person’s property (vehicle, property, and structures) when an accident is your fault.
These are the minimum amount of protection. Florida law requires these insurance coverages to be in place for all registered vehicles in Florida. Even if the vehicle is inactive or out of commission, the coverage must be maintained.
Owners must maintain these liability policies when selling or otherwise discarding the vehicle until the title transfers.
Furthermore, vehicle owners must purchase their insurance from a licensed Florida insurance carrier. And, new residents moving to Florida must transfer their insurance to a Florida-sanctioned insurance company.
RELATED: Florida Automobile Insurance Toolkit
Understanding the Various Types of Auto Insurance
Insurance coverage protects vehicle owners from potential financial loss or ruin resulting from a vehicular accident. Whether an accident involves only the insured’s vehicle, damage to other vehicles or property, or causes injury to individuals in other vehicles, having the right policies can avoid significant financial liability.
Most insurance policies have a deductible, which is an amount that the policyholder must pay before the insurance company pays. Typically, a higher deductible carries a lower policy premium.
Liability Insurance
Liability Insurance may protect a policyholder responsible for causing damage or injuries by paying to repair another person’s property or for their medical bills.
The primary types of liability insurance are Personal Injury Protection and Property Damage Liability.
- Personal injury protection helps cover the costs related to injuries to the policyholder and other people’s injuries.
- Property damage liability helps cover the recovery cost for damages to another person’s property.
Uninsured and Underinsured Motorist Coverage
Uninsured and underinsured motorist insurance covers you for losses if you are injured in a vehicle accident and the other driver does not have insurance, or an adequate amount of insurance, to cover your damages.
Comprehensive Coverage
Comprehensive coverage helps reimburse the policyholder for damages to the insured vehicle resulting from vandalism, theft, or a natural event like a hail storm or a fallen tree limb. Often, lenders require this type of insurance.
Collision Insurance
Collision insurance helps cover the repair or replacement costs to the policyholder’s vehicle damaged in an accident. Most lenders typically require this type of policy.
As with other types of vehicle insurance, collision insurance usually has a deductible, which is the amount the policyholder pays toward the repairs.
Personal Injury Protection
Although Florida has a required minimum amount of Personal Injury Protection (PIP) to cover the medical and related expenses, some drivers purchase additional medical protection for themselves and their passengers.
Many Florida residents have medical insurance provided by their employer, Medicare, or a personal health policy. Personal injury protection can cover certain long-term expenses that typical health insurance doesn’t cover, like lost income and household services. Personal injury protection coverage can also help pay the deductibles and copays typically required with health insurance, so you’ll have fewer out-of-pocket costs.
Other Car Insurance Coverages
Vehicle owners can add special coverages to their insurance policies to help cover other expenses. Some of these include:
- Rental Car Reimbursement, which helps cover the expense of renting a car while the insured vehicle is undergoing repairs.
- Classic Car Insurance is coverage based upon an agreed value when the policy is written.
- Gap Insurance helps pay off your loan if your car is totaled or stolen and you owe more than the car’s depreciated value.
Accidents happen, and drivers must always be aware of the enormous responsibility of driving any vehicle. Having insufficient insurance can be devastating, both personally and financially. At the very least, all Florida drivers should make sure they carry the mandatory liability coverages.
ABC Dennis Insurance
ABC Dennis Insurance is an independent insurance agency established in 1997 that provides automobile insurance to its customers. If you have not reviewed your insurance coverages this year, please call our office at (813) 949-7765 or email us.
Besides auto insurance, we can help with all your insurance needs. As an independent agency, we find the best insurance coverage with the most competitive rates.
