In our Guide to Car Insurance in Florida Part 1, we laid out all the different types of car insurance options. We answered your questions and explained exactly what each one means. In Part 2, we’re taking it a step further.
We’ll explain what the insurance requirements are in Florida, and what it covers. Questions about full coverage insurance? Do you need it? Is it a waste of money? We’ll cover that too! We’ll also explain the fine print on insurance policies and recommend which insurance policies are best for you.
What Insurance Requirements Does Florida Have?
In Florida, as well as other states, insurance is mandatory if you want to have a tag on your vehicle. If you don’t have insurance, then your driver’s license, registration, and tag can be revoked. So, you should know the bare minimum insurance coverage that Florida requires.
Florida requires a minimum coverage amount of $10,000 personal injury protection (PIP). You may or may not have a deductible and $10,000 property damage liability (PD). This must be held for the entire time that you have a valid Florida license plate. This means if you have a tag on a vehicle in your yard, you must carry insurance on it.
The insurance company may offer you bodily injury liability (BIL). This insurance will cover serious injuries or death to cover the other person. It can also cover you, family members, and friends that you allow to borrow your car.
You may need a defense lawyer if you get sued up to the amount of your insurance policies coverage amount.
In short, you need to speak with an insurance company in Florida to make sure that you are compliant with the minimum amount of “Florida Coverage”. This also means that you cannot reside in this state while keeping your vehicle insured in another state. You must establish Florida auto insurance within 10 days of establishing residency.
What Does This Insurance Cover?
You may hear PIP called Florida No-Fault Insurance. It is designed to cover you regardless of fault. If you have the bare minimum $10,000 worth of coverage, all of your expenses will be covered up to that point. It also covers members of your household and children, as well as other people who may not have PIP, but are riding with you. If they have PIP, they will be covered under their own insurance.
PDL covers damages that are caused to another person’s personal property, up to the limit of your insurance. This includes their vehicle or their home if your vehicle goes onto their property.
Do You Need Full Coverage?
In order to legally drive a vehicle in the State of Florida you are only required to carry minimal coverages (PIP & PD.) Please be aware insurance companies call this “full coverage” and although its the minimum required to be on the road, it is far from full protection or full coverage therefore the term is misleading.
Please understand that when in the market to purchase new auto insurance you should consider the coverages listed in Part 1 to better protect you and your family from an unforeseeable accident.
Insurance isn’t always easy to figure out. If you have any questions about car insurance and whether you are protected when you get into a car accident, call us today.