Florida Automobile Insurance Laws
- Insurance laws in Florida are designed to protect drivers.Crash on the street. German auto model 2007. image by Dariusz Kopestynski from Fotolia.com
Florida's auto insurance laws feature some unique characteristics. For example, Florida is one of only 12 states that has no-fault insurance laws. The most recent law, which was passed in 2008, does away with many lawsuits resulting from auto crashes. Florida also has a strict method of ensuring that drivers do not allow their auto insurance to lapse. Failing to meet auto insurance obligations in Florida can have severe consequences, including the suspension of a driver's license. - In Florida, every person driving a registered vehicle is required to carry at least the state minimum for auto insurance. Every driver's insurance policy must provide $10,000 of liability bodily injury coverage for one person and $20,000 of liability bodily injury coverage for two or more people. The state also requires insurance policies to include a $10,000 liability coverage for property damage. Anyone driving a rental car in Florida is also required to meet the minimum coverage laws for auto insurance. Often, this insurance can be purchased based on a daily rate from the rental company. In other cases, a credit card used to rent the vehicle or a driver's own auto insurance policy covers the use of the rental vehicle.
- You must supply the Department of Highway Safety and Motor Vehicles with proof of auto insurance in order to obtain registration for a vehicle in the state, and the state requires insurance companies to notify the DMV when insurance lapses or is dropped. The U.S. Department of Highway Safety and Motor Vehicles can suspend driving privileges of drivers who do not provide proof of insurance after being notified that insurance has lapsed. The vehicle's plate and registration also is suspended, and reinstatement of a driver's license in Florida requires a fee of $150. You must provide proof of insurance before you can apply for reinstatement.
- Florida requires all drivers to carry Personal Injury Protection insurance. Florida is a no-fault state. This means Florida drivers do not need to prove the other party was at fault in a crash before a driver can receive insurance money to pay for medical bills and other costs associated with the crash. The other party's insurance automatically covers such expenses. In Florida, though, people who are injured in a crash are not allowed to sue for pain and suffering or emotional distress. The no-fault coverage requirement in Florida is $10,000 per person. This covers the other driver. PIP coverage pays 80 of medical bills and 60 percent of lost wages.
- In Florida, all policies must be issued by a company licensed to sell insurance in the state. Drivers also cannot continue to use a policy that was purchased while the driver was a resident of another state. Florida drivers are not obligated to purchase coverage to protect against uninsured or underinsured motorists. State law, though, does require insurance companies to offer this insurance. In accordance with Florida laws, personal credit history can be used as a determining factor insurance companies use to set rates and coverage offered to residents in the state.
