Florida Auto Insurance Laws, Minimums, Requirements
What mandatory auto insurance laws exist in the state of Florida?
- In the state of Florida, every person driving a registered vehicle must carry the state’s minimum coverages.
- Minimum auto insurance coverages in for the state of Florida are: $10,000 bodily injury for one person, $20,000 bodily injury to two or more people, and $10,000 property damage liability.
- Florida’s Financial Responsibility Law states that drivers must also have minimum coverages in the following circumstances:
• DUI citation and subsequent license revocation
• A crash that you caused, involving injuries
• Driver license suspension for too many points
• License revocation for habitual traffic offenders
In the state of Florida, all insurance policies must be issued through a Florida agent with an insurance company licensed to sell in Florida. Drivers cannot maintain their current policy issued in their previous state of residence.
What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):
If you buy automobile insurance in the state of Florida, your policy must include minimum liability coverage of:
10,000 bodily injury for one person
$20,000 bodily injury to two or more people
and
$10,000 property damage liability.
What are the Rental Car Insurance Requirements?
In the state of Florida it is against the law to operate a motor vehicle without minimum liability, this includes rental cars. If your credit card or your current auto insurance policy does not cover car rentals, the state of Florida requires that you carry a copy of the rental agreement when renting a motor vehicle, which specifies the insurance coverage. Car rental companies are required by law to offer the minimum amount of liability insurance coverage. Typically, insurance offered through the rental company costs an extra $7-$14 a day.
What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?
In the state of Florida, Uninsured/Underinsured Motorist Coverage is not required by state law. However, Florida law requires all insurance companies to offer Uninsured/Underinsured Motorist Coverage. If you elect not to carry Uninsured/Underinsured Motorists coverage, Florida law requires that the insurance company provide a declaration page indicating that you have elected not to carry these coverages.
What are the rules pertaining to the exclusion from coverage of a driver living in household?
Florida state law does not require you to list all drivers in the household on your auto insurance policy, but the vast majority of Florida insurance companies will require that you do. If a member of your household is not listed on the policy and he or she is involved in an accident, the insurance company can legally deny the claim.
What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?
If you fail to keep insurance on your vehicle that is registered in Florida for any reason, whether it lapses or it is suspended, the Department of Highway Safety and Motor Vehicles is authorized to suspend your driving privilege for up to three years or until proof of Florida insurance is provided. This suspension includes your vehicle tag and registration. There is also a penalty to reinstate your license. A fee of $150 and up to $500 for subsequent violations must be paid before you can reinstate your license, and you must also provide proof of current Florida insurance.
What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?
In the state of Florida, Personal Credit History can be used to determine rates and the types of products an insurance company will offer. It is estimated that most Florida customers receive a rate decrease based on their credit score.
Is the state a No Fault or Tort state? What does either mean to the policy owner?
While Florida's no-fault system expired on October 1, 2007, a new no-fault law was passed by the Florida legislature, creating a new no-fault system by January 1, 2008. Florida’s no-fault system means that the state does not require its citizens to carry Personal Injury protection (PIP) insurance, Comp and Collision insurance, or uninsured motorist insurance.
What is the average auto insurance premium in the state of Florida? As of what year?
As of 2006, Florida’s resident’s average insurance premium was approximately $1,069 5th most expensive in the nation. This was down 0.5% from the previous year. The national average was $817.
Sources
Insurance Information Institute
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