Florida Auto Insurance Regulations
Like most states, the State of Florida requires its drivers to maintain financial responsibility for their actions while on the road. However, unlike most states, Florida does not require its drivers to maintain bodily injury liability coverage. Instead, this no-fault state requires drivers to maintain personal injury protection coverage, along with property damage liability.
Personal Injury Protection
Personal injury protection (PIP) is a no-fault insurance coverage that insures drivers and their passengers against injuries incurred during an accident. Unlike bodily injury liability, personal injury protection pays regardless of fault which in turn allows payments under this coverage to occur before the accident investigation is complete. A fairly comprehensive coverage, PIP also protects policyholders, and their children, and listed household members from injuries caused as a pedestrian and while riding buses.
Property Damage Liability
Property damage liability is an at-fault coverage that insures the other party against damages caused by the policyholder’s negligence. The coverage insures only property damage, such as the other party’s vehicle, lampposts, etc. With at fault coverage, property damage liability payments are often delayed until the claim’s investigation is complete.
Bodily Injury Liability
Bodily injury liability is also an at fault coverage. This coverage insures the other party for the injuries and rehabilitation costs incurred as a result of the policyholder’s negligence. The coverage pays up to the selected coverage limit for medical costs, rehabilitation costs, doctors and emergency visits and funeral costs incurred. In addition, bodily injury liability coverage provides the policyholder with legal representation and reimburses certain legal expenses incurred due to litigations resulting from the at-fault accident.
Florida Coverage
The term “Florida coverage” is often used to describe Florida’s minimum financial responsibility requirements. However, Florida’s no-fault status is often misleading to drivers. Although drivers are not required to carry bodily injury liability coverage, they are required to be financially prepared to pay for the not at-fault party’s injuries after all personal injury protection coverages are exhausted. To meet Florida’s financial responsibility requirements using auto insurance, drivers must carry bodily injury liability limits of no less than $10,000 per person with $20,000 per accident, along with property damage liability of at least $10,000 and personal injury protection of at least $10,000. These insurance requirements apply not only to Florida’s registered vehicle owners and licensed drivers, but to out-of-state drivers that maintain a vehicle within the state of Florida for more than 90 days.
Alternatives
Auto insurance isn’t the only way to meet Florida’s financial responsibility requirements. Drivers can also elect to certify their financial responsibility with the Florida Bureau of Motorist Compliance. To do so, drivers must choose to self-insure by presenting a notarized copy of their financial statement showing an unrestricted net worth of no less than $40,000. Drivers can also certify responsibility by depositing cash or securities in the amount of $30,000 with the Florida Bureau of Motorist Compliance or by securing a surety bond with bodily injury liability limits of $10,000 per person and $20,000 per accident, and $10,000 for property damage liability.
Noncompliance
Drivers that fail to comply with Florida’s financial responsibilities are subject to immediate suspension and revocation of all driving and registration privileges. Not only must drivers secure insurance coverages to restore privileges, noncompliant drivers are subject to penalties and fines that can include reinstatement fees up to $500 and a 12-month license suspension.
Considerations
When it comes to the state with the most drivers, Florida was ranked #3 by the U.S. Department of Transportation with nearly 13 million licensed drivers. The Insurance Research Council reports that approximately 23 percent of Florida’s 13 million drivers are uninsured. To ensure proper protection, it is always a good idea to carry insurance liability limits that are higher than the state’s minimum coverage requirements. Policyholders can also elect to carry uninsured and underinsured motorist coverages on their auto insurance policies. These coverages provide additional protection to the policyholder when they are struck by a driver who is not insured or does not have enough insurance coverage to cover the damages and injuries caused by their negligence.
