How does car insurance work in Florida?

Florida car insurance laws require everyone who registers a car in the state to carry at least $10,000 of personal injury protection (PIP) and $10,000 of property damage liability (PDL). This is not much coverage. In fact, Florida has the lowest insurance requirements in the U.S. (except for New Hampshire, which requires no insurance).... read full answer

Minimum Coverage Required by Florida Car Insurance Laws

• Personal Injury Protection: $10,000 of coverage is required.
• Property Damage Liability: $10,000 of coverage is required.

Florida Car Insurance Laws for Seasonal Residents

In addition to all cars registered in Florida, Florida’s car insurance laws apply to any car that is driven in the state for more than 90 days in a 12-month period. This means Florida’s large seasonal population must meet Florida’s insurance requirements as well.

Seasonal residents often need to add PIP to their out-of-state policies, since this type of insurance is only required in 12 no-fault states. Residents of the few states with lower mandatory PDL limits also may need additional property damage liability coverage to drive legally in Florida.

How Florida Car Insurance Laws Work

Florida requires its drivers to carry PIP insurance

PIP pays the policyholder’s basic medical expenses, no matter who causes an accident. However, Florida doesn’t require bodily injury liability—the insurance that pays for the other party’s injuries.

Florida’s no-fault law is limited

“Fault” becomes an issue in Florida when injuries are permanent or serious (costing over $10,000 in medical bills and/or lost income). In these cases, victims can sue the at-fault driver. To ensure victims can be paid, the at-fault driver in an accident has to provide proof of “financial responsibility.” The most common proof is bodily injury liability insurance. Drivers also have the option of posting a bond of up to $20,000.

Florida’s PDL requirements are relatively low

Property damage liability insurance pays for damages a driver causes to other people's property in a crash. The damage can be to cars or other property such as fences or buildings. Florida’s PDL requirements are also relatively low. Most states require higher minimum limits, although there are some that require $10,000 like Florida and four that require only $5,000—California, Massachusetts, New Jersey, and Pennsylvania.

The penalty for driving without insurance in Florida is the suspension of your license, registration and vehicle tags for up to 3 years or until you purchase a new policy, whichever comes first. During this suspension, you won’t be able to get a temporary or restricted license, even to commute to work. After the first offense, you’ll pay a $150 reinstatement fee to get your license and registration back. A second lapse in your policy within three years will cost you $250. After a third lapse within three years, reinstatement will cost $500.... read full answer

Drivers in Florida pay an average of $814 per year to maintain the minimum amount of car insurance coverage. That’s nothing compared to the consequences of driving without insurance, especially if you get into an accident.

Penalties for Driving Without Insurance in Florida

Not having car insurance and not being able to prove that you have it are two different violations. If you have insurance but cannot prove it when you get pulled over or at the scene of an accident, you are guilty of an “administrative violation,” similar to a seat-belt ticket. Your citation might be dismissed if you can provide the court with proof of valid insurance for the date of the citation within 30 days.

Driving without car insurance at all is much more serious, and the penalties are more severe. In addition to the legal consequences, you can also expect your car insurance premium to go up. A single conviction for driving without insurance raises annual premiums by an average of 8%, or $189, in Florida.

What Happens If You Get Into a Car Accident Without Insurance in Florida?

If you get into an accident while driving without insurance in Florida, you will be penalized for driving without insurance no matter who is at fault.

If the accident is your fault, you’ll have to pay for all the damages out of your own pocket. Both the other driver and their insurance company can sue you and have future wages and savings garnished to pay for damages.

If you are not at fault, driving uninsured can make it difficult to be compensated for damages.

Final Thoughts: How to Avoid Driving Without Insurance in Florida

To avoid the penalties of driving without insurance in Florida, shop around for at least $10,000 in personal injury protection along with $10,000 in property damage liability coverage. In Florida, you can find auto insurance that fulfills the minimum requirements for around $814 per year if you have a clean driving record. The consequences of driving without insurance are ultimately more costly than purchasing minimum auto insurance coverage.

Car insurance usually follows the car in Florida. The types of car insurance that follow the car in Florida are collision, comprehensive, and property damage liability. You’re required to carry property damage liability and personal injury protection in Florida. PIP follows the driver, unlike liability coverage.

If you let someone borrow your car and they cause an accident in Florida, bodily injury liability insurance pays for injuries to the other driver and their passengers. Property damage liability insurance will pay for damage to the other driver's car. If the person who borrowed your car causes damage that exceeds your coverage limits, their liability policy can act as secondary coverage. But their coverage only kicks in after yours is tapped out. ... read full answer

You won’t need to use your PIP or MedPay coverage if someone caused an accident while driving your car because PIP and MedPay follow the driver. You will have to use your collision and comprehensive insurance to pay for damage to your car, though. These optional coverage types pay for your car to be fixed no matter who was driving, but it is a claim on your policy.

It’s always a risk to lend your car to someone else, because you could definitely end up filing a claim using your own insurance in Florida. When someone borrows your car, they also borrow your insurance coverage in most cases.