Florida Minimum Car Insurance Requirements
The state of Florida functions a little differently than other states when it comes to mandatory car insurance laws. In Florida, you must carry property damage liability (PDL) and personal injury protection (PIP) in order to drive legally. The state-mandated minimums you have to carry as a Florida driver are outlined below.
- $10,000 in property damage liability (PDL)
- $10,000 in personal injury protection (PIP)
Florida is a no-fault state, meaning car insurance policies are more focused on protecting you instead of other drivers. In other states, after an accident, you would file your claims with the other driver’s insurance company for a payout. In no-fault states, everyone sticks to their own insurance company. On top of carrying the mandated insurance, you must also be ready to provide proof of insurance when asked.
Florida Personal Injury Protection (PIP)
Florida is one of the few states that require drivers to carry PIP coverage, but with being a no-fault state, it does make some sense. PIP insurance helps to cover any medical expenses you and your passenger(s) accumulate due to an accident. Typically, in other states, the bodily injury liability insurance the other party carries would pay for these costs, but in Florida, your insurance is responsible for them. PIP coverage may also expand to lost wages and funeral expenses but does not offer pain and suffering compensation.
Florida Property Damage Liability (PDL)
The state of Florida does mandate one form of liability insurance, and that is for property damage. In the event that you cause an accident, your property damage liability (PDL) insurance would pay for damage to the other driver’s vehicle. Usually, liability insurance is comprised of both property damage and bodily injury coverage. But in the state of Florida, bodily injury liability insurance is replaced with PIP coverage.
Florida Diminished Value Policy
Florida is also what is known as a diminished value state, meaning that drivers can recover diminished value from the at-fault driver’s insurance. After an accident, even if your car is fully restored, its resale value takes a serious hit. When you go to sell your car, if you experience any losses, you can try to file a claim with the other party’s insurer. Florida is one of 15 states that allow you to attempt to recoup these monetary losses. There are certain requirements you must meet in order to make a successful claim:
- You were not the at-fault party in the accident.
- You can provide substantial documentation of the accident, including records, photos, and receipts.
- It has been less than 4 years since the accident.
- The state of Florida does not have uninsured motorist coverage for these claims.
Car Insurance Limits in Florida
Nearly every state requires every driver to carry to a certain minimum amount of liability insurance coverage. Florida is no exception. The state limit is the lowest amount of insurance you can carry in order to be a legal driver. These can be adjusted as you see accordingly and it is highly recommended you go beyond the state-mandated minimum. As we have discussed, there are two types of insurance you must carry in the state of Florida. They each have their own coverage limits you must meet.
Is Florida’s Mandatory Insurance Minimums Enough Coverage?
The insurance requirements in Florida are quite low and insubstantial compared to other states. It is recommended you consider expanding your coverage limit and adding other types of insurance to your policy. If you only carry what Florida mandates, you could be facing some financial issues. Whatever is not picked up by insurance can come back to you, and you could be expected to pay out of pocket. If the bodily injuries caused in the accident are severe enough, the other driver may also be able to sue you if their PIP insurance will not cover medical expenses in their entirety. A $10,000 PIP limit will not be enough, neither will that be adequate to cover property damage. In order to make sure you and your finances are fully protected, you will have to increase your coverage.
Driving Without Proof of Insurance in Florida
Driving without insurance in the state of Florida can have some pretty harsh penalties. The chart below outlines what you could be facing if you fail to carry the required car insurance in Florida.