What are Florida’s Car Insurance Requirements?

Florida’s roads are among the nation’s most congested, and that includes Tampa. The state’s status as a tourist magnet means many out-of-state drivers taking long road trips. Or foreigners fly to Florida, rent cars and drive on our roads without understanding our rules of the road, like driving on the right side of the road. As a consequence, Florida consistently ranks among the top states for the number of car accidents, injuries, and fatalities. Arguably, Florida’s insurance requirements have not kept up with these grim statistics.

Mandatory car insurance in Florida

Do you have to have car insurance in Florida? Yes, you do. Florida car insurance requirements are somewhat unique, however.

Personal Injury Protection (PIP) insurance “No Fault”

Florida car insurance law is based on a no-fault system with respect to medical and related expenses. For most accidents, each injured party’s insurance pays their own medical bills and lost wages out of their Personal Injury Protection (PIP) policy. Florida requires its drivers to purchase at least $10,000 in PIP insurance. PIP will pay up to 80% of medical expenses, up to 60% of lost earnings, and (very) limited death benefits.

PIP will pay medical expenses for anyone in your household, any passenger in your car who lacks their own PIP insurance, and any pedestrian struck by your car. The main advantage of PIP insurance is that you don’t have to prove the other driver was at fault to get your bills and wages paid.

The down side of PIP insurance

The main disadvantage is limitations on damages. PIP will not pay for pain and suffering or punitive damages, and you usually cannot sue the at-fault driver. You must seek medical treatment within 14 days—otherwise your compensation is limited to $2,500.

Property damage (PD) insurance

All Florida drivers must purchase at least $10,000 in PD insurance. PD insurance covers damage a driver causes to someone else’s property (typically their car). PD does not cover their own property damage. Property damage insurance is not no-fault insurance—anyone claiming against this policy must prove the policy holder is liable for the property damage in question.

How Florida’s laws affect personal injury payouts

Florida recognizes that PIP insurance will not cover all damages in a major accident. Consequently, if an accident meets the statutory “permanent injury” threshold, no-fault restrictions go out the window. To meet this threshold, you must have suffered:

• Significant and permanent loss of an important bodily function;
• Permanent injury within a reasonable degree of medical probability;
• Significant and permanent scarring or disfigurement; or
• Death

Once you prove the injuries are permanent, the at-fault driver is responsible for damages including pain, suffering, disability, loss of the enjoyment of life, inconvenience, and any aggravation of any pre-existing conditions. And in some cases, even punitive damages.

Optional car insurance

Following is a list of the most important types of non-mandatory auto insurance you should consider purchasing.

Bodily Injury (BI) insurance

Bodily Injury insurance pays a third party who suffered an injury that you caused. Shockingly, Florida is one of only two states that do not require most drivers to purchase BI insurance (New Hampshire is the other one). A minority of Florida drivers, such as drivers with DUI convictions, must purchase BI insurance.

Imagine this scenario: You cause a car accident that results in a “permanent” injury to someone. If you don’t carry BI, the injured party can sue you in your personal capacity. You should purchase BI even if Florida law does not require you to carry bodily injury insurance. Purchasing more than you think you’ll need–$100,000, for example is a good place to start, but even $100,000, may not be enough coverage to protect you and your family.

Uninsured/Underinsured motorist (UM/UIM) coverage

According to the Insurance Research Council, about 50% of Florida drivers are uninsured. If you get into an accident with one of those drivers, you might have trouble getting paid what is due to you.

The solution is to purchase uninsured/underinsured motorist insurance in advance. UM Coverage limits should mirror your BIL coverage—$100,000, for example. This insurance will pay if an at-fault driver is uninsured, or simply doesn’t carry enough insurance to pay all of your claim.

Collision and comprehensive

Collision covers damage to your vehicle in an accident even if the accident was your fault. Comprehensive covers damage to your vehicle caused by an incident other than a collision, such as vandalism, theft, fire, flood or hail damage for example.

Penalties for driving without insurance

Driving without insurance in Florida can result in serious consequences:

• First offense: Suspension of license and registration until proof of insurance is provided and a reinstatement fee of $150 is paid.
• Subsequent offenses: Increased suspension periods, $250 to $500 reinstatement fees, and possible vehicle impoundment.

If you’re uninsured and at fault, you could also face a civil lawsuit for damages out of your personal assets.

Recent developments and proposed reforms

Florida lawmakers have proposed significant updates to its auto insurance system. Some legislators, for example, have proposed ditching the no-fault system in favor of the fault-based system that most other states use. Other law makers have pushed for mandatory BI insurance.

Final thoughts: Protect yourself before an accident, seek justice afterward

Now is the time to prepare for a Florida car accident. No matter how careful a driver is, all it takes is an error by another driver to cause a serious accident that could overwhelm your insurance resources if you only purchased the mandatory minimum. After an accident, of course, you’re going to need to aggressively seek 100% of the compensation you deserve.

That is where MattLaw Car Accident & Personal Injury Lawyers comes in. MattLaw has been representing injury victims for over 35 years, and we have won over $250 million for our clients. Call us at your earliest convenience to schedule a free initial case consultation.