Are you a new driver in the state of Florida buying auto insurance for the first time?
Did you recently move to Florida from out-of-state and need information on auto insurance requirements?
Do you have multiple cars and want to know what the auto insurance requirements in Florida are for cars you don’t drive often?
Before you drive or register a vehicle in the state of Florida, there are some basic auto insurance requirements you need to know.
This post covers why you need auto insurance in Florida, four auto insurance requirements in Florida, and how to buy auto insurance in Florida. You’ll also learn some important terms to know about auto insurance. These terms will help make choosing an auto insurance policy a breeze.
No-Fault Auto Insurance Laws in Florida
Florida is one of the few states in the U.S. that that has no-fault auto insurance laws. These laws are designed to keep premiums low while providing timely payouts on auto accidents and damages. Using no-fault auto insurance helps avoid lawsuits due to limited liability auto insurance.
An important distinction to note about auto insurance requirements in Florida is that you must carry no-fault auto insurance on any vehicle with four wheels that is registered in the state. That means that, even if you don’t routinely drive the vehicle, if it’s registered, it must have no-fault auto insurance.
Auto insurance protects both the driver of the vehicle and any parties that are injured or suffer damages as a result of an auto accident. You need auto insurance to protect your financial interests if you are at fault in an accident. Auto insurance can protect you in case another party is under-insured and is responsible for your injury or related damages.
You may also need auto insurance because your vehicle is financed. Many auto financing companies have minimum coverage requirements that are greater than the no-fault auto insurance laws require. Check with your financing company before purchasing auto insurance in Florida.
4 Auto Insurance Requirements in Florida
Because of the no-fault auto insurance laws, there are a few basic auto insurance requirements in Florida for driving a vehicle in the state:
1. Personal Injury Protection
Personal injury protection (PIP) may cover things like medical expenses, lost wages, and other services for the driver or passenger of the policyholder’s vehicle. In Florida, it covers 80% of “all necessary and reasonable medical expenses.”
The minimum required coverage limit for PIP is $10,000.
2. Property Damage Liability
When it comes to property damage, Property Damage Liability (PDL) coverage will pay for damages you cause to another person’s property up to your policy limits. It doesn’t cover damages to your own vehicle if you are at-fault in an accident.
The minimum required coverage limited for PDL is $10,000.
3. Penalties for Being Uninsured
Whether the vehicle is being driven or even if it’s inoperable, you must have continuous auto insurance coverage during the entire registration period of the vehicle. You also need to have auto insurance when you register your vehicle.
Penalties include the suspension of your driver’s license or vehicle registration for up to three years, plus a reinstatement up to $500.
4. Non-Residents Driving in Florida
If you are a non-resident and you either accept employment in Florida or enroll children in a public school in Florida, you are required to have your vehicle registered in the state and have a Florida auto insurance policy. You may be able to transfer your insurance policy, so check with your insurance company first.
You have 10 days after one of the qualifying events happens to register the vehicle, and you must have a Florida certificate of title when applicable.
Auto Insurance Terms to Know
To help make buying auto insurance in Florida a little bit easier, there are some key terms to know. You want to review these before comparing policies so you can compare apples to apples.
Some important auto insurance terms to know are:
- Deductible: A deductible is an amount you pay your insurance provider before coverage begins – this is usually deducted from a claim’s payout. Some financing companies have a maximum deductible, so check with yours before purchasing insurance.
- Gap Coverage: With gap coverage, the difference between the value of your vehicle and the remaining loan balance is covered if your car is totaled. This may or may not be required if you are financing your vehicle.
- Limits: Coverage limits vary, but this is the maximum amount your insurance policy will pay for a claim in a particular accident. Higher coverage limits mean you’ll be better protected financially should you have a serious accident.
- Premiums: Your premiums are what you pay for your insurance policy – you may pay them every six months, every year, or even monthly. A higher deductible will yield lower premiums, and a lower deductible will give you the lowest premiums.
These are some important terms to know when deciding on coverage options. Keep coverage limits and additional services in mind when comparing quotes. Those can either skew the data or be added bonuses with a great policy.
How to Buy Auto Insurance in Florida
Buying auto insurance in Florida is relatively simple, but keep these few things in mind when choosing an auto policy:
- Check with your financing company, if applicable, to verify the minimum coverage limits you need to satisfy their requirements.
- Get auto insurance quotes from multiple companies and compare them carefully to ensure you’re getting adequate coverage at the best rates.
- Work with an insurance agency or broker to help you find the best auto insurance options for your driving and financial situation.
- If you’re new to the state, check with your current auto insurance provider to see if they can easily transfer your policy to Florida.
These tips will help you compare quotes and prices with confidence, so you won’t find yourself stuck in a situation where you’re without the appropriate auto insurance coverage.
Want to make sure you’re covering all the auto insurance requirements in Florida? Contact Fiorella Insurance Agency today to get a comprehensive auto insurance quote.