Auto insurance coverage is more than a good financial decision—it’s the law.
Nearly every U.S. state requires drivers to have some form of insurance. So if you live in (or are moving to) the Sunshine State, you will need to know what car insurance policies are required in Florida.
However, as your friendly neighborhood insurance agent, we also want to make you aware of other essential types of car insurance policies that can protect your bottom line in the event of a car accident. In this guide, we’ll talk about Florida’s auto insurance requirements as well as other types of coverage you should consider.
What Are Florida’s Auto Insurance Requirements?
Florida car insurance laws state that all resident drivers must carry at least $10,000 in both Personal Injury Protection (PIP) and Property Damage Liability insurance. These two policies are designed to ensure that drivers can cover medical expenses and property damage in the event of an accident, regardless of who is at fault.
Property Damage Liability (PDL)
Property Damage Liability coverage, or PDL, is designed to pay for damage that you may cause to a third party’s property (such as their vehicle, mailbox, or storefront) after an accident.
Please note that PDL does not pay for damage to your own vehicle or property. Also, if the damage you cause exceeds your policy limit, you may be responsible for paying the difference out of pocket.
Personal Injury Protection (PIP)
Florida is a No Fault state, which means that each driver must turn to their own insurance coverage following an accident. That’s where PIP coverage comes in.
PIP covers 80% of your medical expenses and 60% of the lost wages related to a car accident, up to your policy limit. Turning to your own insurance policy is believed to make the process quicker and easier, so that injured drivers (and passengers) can receive prompt medical attention.
Why Do I Need More Car Insurance In Florida?
“If Florida law only requires two types of car insurance, isn’t that all I need?”
Absolutely not!
Out of the hundreds of risks you face while on the road, PIP and PDL only cover two of them. For instance, if you get into a crash with an uninsured driver (it might be illegal, but it happens more than you’d expect!), you could be left footing the bill for your own repairs.
Even if you never get into an accident, it pays to purchase more than the legal minimum. Insurance companies base your premium amounts on your level of risk. Carrying higher limits often results in lower premiums because it sends the message that you take your financial responsibilities seriously.
Essential Car Insurance Coverage
Even though there are only two types of policies that are required by law, there are several additional car insurance policies that no Florida driver should be without.
While all policies have exclusions, adding these coverages to your car insurance policy can protect you from a much broader range of hazards.
Uninsured Motorist
While it’s illegal to drive without insurance in Florida, that doesn’t stop everyone from doing it. It’s estimated that 20% of drivers do not have any insurance on their vehicles.
Uninsured Motorist (UM) coverage is designed to step in if you are involved in an accident with a driver who doesn’t have enough insurance to cover your bills. Even with PIP, $10,000 can disappear quickly, especially if you end up needing long-term care.
Bodily Injury Liability
Bodily Injury Liability (BIL) insurance covers the medical expenses, lost wages, and legal costs for other people if you are at fault in an accident that results in injuries. BIL does not cover your own injuries or those of your passengers.
Unlike other states, Florida does not require drivers to carry bodily injury liability, but it is highly recommended to protect yourself from potentially significant financial liability. This coverage can help ensure that you don’t have to pay out of pocket for someone else’s medical bills or legal claims.
Comprehensive and Collision
Comprehensive and Collision coverage are sometimes known as “full coverage” car insurance. However, while they protect against a wide range of risks, they do not provide “comprehensive” coverage in the true sense of the word.
Collision coverage pays for repairs or replacement of your car if it’s damaged in an accident, regardless of who is at fault. This includes collisions with other vehicles, objects like trees or poles, or if your car rolls over. Comprehensive coverage, on the other hand, covers damage to your car from non-collision events, such as theft, vandalism, fire, or natural disasters.
Together, these coverages ensure that your vehicle is protected from a wide range of risks, giving you peace of mind whether you’re on the road or parked.
Conclusion
While Florida’s minimum auto insurance requirements provide a basic level of coverage, they are simply not enough to fully protect you on the road. Relying solely on these minimums leaves you vulnerable to significant financial risks, especially in the event of an accident involving an uninsured or underinsured driver.
It is impossible to predict what you will encounter when you get behind the wheel. Although insurance can’t prevent accidents from occurring, it can help ensure that they don’t financially devastate you.
At Darr Schackow Insurance, we pride ourselves on matching our clients with the carriers and coverages that are best for them. Contact one of our friendly, knowledgeable agents today so we can discuss your needs.