Best Car Insurance 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).

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.
• Collision: not required under Florida car insurance laws
• Medical Payment: not required under Florida car insurance laws
• Uninsured/Underinsured Motorist: not required under Florida car insurance laws
• Bodily Injury Liability: not required under Florida car insurance laws

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.

Car insurance in Florida costs $68 per month, on average, or $814 per year. The average cost of car insurance in Florida is 13% higher than the national average auto insurance premium, and Florida ranks 36 out of 50 for the most affordable car insurance rates in the U.S.

Average Cost of Car Insurance in Florida by Category 

• Clean driving record: $920 per year
• After an at-fault accident: $1,359 per year
• Driver with poor credit: $1,746 per year
• Teen driver: $2,907 per year
• After a DUI: $1,419 per year

There are several factors that affect how much you'll pay for car insurance in Florida, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from. On average, the cheapest insurance companies in Florida are USAA, Geico, and Liberty Mutual. But every insurer has their own way of calculating premiums, so it's a good idea to get quotes from at least three different companies to make sure you find the best deal.

Finally, it's worth noting that car insurance premiums in Florida are average, compared to the cost of coverage in neighboring states like South Carolina and Georgia. You can find more details in the table below. 

Cost of Car Insurance in Florida vs. Neighboring States

Yes, Florida is a no-fault state which means each driver's insurance pays for their own medical bills no matter who causes a collision. Florida drivers are required to purchase personal injury protection (PIP) coverage for that purpose.

Drivers in no-fault states such as Florida can't sue other motorists as easily as drivers in so-called tort states, where fault matters. Specifically, Florida has pure comparative negligence laws. You can collect damages proportionate to your fault. If you're 99% at fault, you can get 1% from the other driver.

Why You Should Care That Florida Is A No-Fault State

• No-fault means faster payouts. Police and your insurance company don't need to investigate the cause of an accident before you can get paid for your medical bills. As a result, your bills get paid more quickly than they would in a tort state, where fault for the accident determines the payout.
• You're covered no matter who causes the accident. This alone can make driving in Florida a bit less nerve-wracking.
• Premiums are higher. States with no-fault insurance struggle with high rates of fraudulent claims, which raise the costs of insurance for everyone.
• No-fault rules don't apply to property damage. One or both drivers will be at fault after a collision, no matter which state you live in. The police and your insurance company consider Florida's laws, the circumstances of the collision, and drivers' testimonies before deciding who is at fault.

Florida limits the timeframe when people can get medical treatment after a crash. The limit (two weeks) is meant to decrease insurance fraud. Unfortunately, fraud is still a huge issue in Florida.

Florida vs Other No-Fault States

No-fault insurance can make the process of recovering from a collision easier for everyone involved, but it's generally more expensive. Buy as much coverage as you can afford to protect yourself in the event of a costly collision.

Gap insurance in Florida works the same way as gap insurance in the rest of the U.S. It pays the balance remaining on a car loan or lease contract after a liability, comprehensive, or collision policy pays out the actual cash value of a totaled vehicle. The state of Florida doesn't require any driver to carry gap insurance. However, certain lenders in Florida may require customers to carry gap insurance – short for guaranteed asset (or auto) protection insurance – if they get a car loan or lease.

Best Gap Insurance Companies in Florida

• Esurance
• PURE Insurance Company
• Nationwide
• The Hartford
• Progressive

Dozens of companies, including banks and dealerships, offer gap insurance in Florida. While you should take your time deciding which one is right for you, you can also have confidence in the fact that gap insurance works the same way in Florida as in the rest of the country.

It's worth noting that gap coverage is usually cheaper to purchase from an insurance company than a dealership. For more information, check out WalletHub's complete guide to gap insurance.

Florida requires $10,000 of personal injury protection, or PIP coverage, for every car registered in the state or driven within the state for more than 90 days in a 365-day period. So even if you're a seasonal resident or long-term visitor to Florida, you may need to carry Florida's minimum PIP coverage. Florida PIP covers medical costs, lost wages and death benefits. It can also pay for at-home services like laundry, house cleaning and pet care, if they're necessary due to an accident. PIP not only protects you while you're driving, but also if you are injured in an auto accident while riding in someone else's car, walking, or riding a bike.

Florida PIP coverage is also called Florida no-fault insurance. It pays policyholders for their own medical expenses after an accident, regardless of fault. PIP offers injured parties up to $10,000 in immediate medical coverage, without going through the lengthy process of establishing fault through the courts.

Florida's no-fault regulation is limited, however. When an accident causes injuries that are serious (costing more than $10,000 in medical expenses and/or lost wages) or permanent, Florida acts like an at-fault state. The victim is then allowed to sue the at-fault driver for losses. The at-fault driver must compensate the victim through bodily injury liability insurance or personal assets.

In Florida, you can choose whether you want your PIP to cover just yourself or every resident in your household. In other states, like Michigan and New Jersey, PIP automatically covers all household members. Florida PIP is also different from other states because it covers only 80% of your medical expenses and 60% of your lost wages. For example, if your medical bills are $10,000, PIP will cover $8,000 of them.

If your injury is not considered an emergency, your benefits are limited to only $2,500. And if you don't receive medical treatment within 14 days of the accident, you'll receive nothing. If you die in a vehicle accident, Florida PIP will pay your family up to $5,000 for funeral expenses.