• Florida requires car insurance.car crash image by dawn from Fotolia.com
  
  Driving can be a dangerous activity that can result in expensive personal, bodily injury and property damage. A serious accident could cause hundreds of thousands of dollars in damages. Few could avoid bankruptcy in such a situation. Insurance policies can protect personal assets from lawsuits. To reduce litigation and protect drivers, many states, including Florida, have adopted mandatory auto insurance coverage. Failure to have insurance can result in denial of car registration or even loss of driving privileges. However, realistically, given the average cost of a car accident, the minimum requirements for Florida are often insufficient to cover costs.
  
  

Florida Law

• Title XXII of the Florida Statutes governs motor vehicles. Chapter 324 of that code demands financial responsibility of drivers. The law covers such issues as acceptable forms of proof for insurance, reporting requirements when crashes occur, penalties for failing to register, an option for self insurance through a bond, installment payments for insurance policies, types of insurance required and minimum insurance requirements. Failure to have insurance in Florida can result in the Florida Department of Motor Vehicles suspending driving privileges, registration and license plate for three years. The suspension can be lifted after proof of insurance is provided. However, as of August, 2010, the cost of reinstatement can be between $150 and $500.
  
  

No fault insurance

• Florida auto insurance law is a no-fault system. Florida refers to its system as personal injury protection (PIP). The system is designed so that the first $10,000 in bodily injury damage is covered by the driver's personal policy, no matter who is at fault for the accident. In theory, no-fault insurance should limit litigation, reduce insurance premium and help people recover from accidents more quickly. However, many critics point out that states that have adopted no-fault insurance systems have not realized those benefits and in some cases have actually seen exacerbation of those public policy issues.
  
  

Minimum Requirements

• Florida has minimum requirements for the amount of insurance required for operation of a private passenger vehicle. The personal injury protection minimum, as required in Florida's no-fault system, is $10,000 per person or crash and $10,000 in property damage protection. Additional insurance is required in the event damages exceed $10,000 in bodily injury and $10,000 of property damage. The amounts are $10,000 for one person, $20,000 for two or more people, $10,000 for property damage and $30,000 in combined single limits.