Minimum Car Insurance Coverage Required In The State of Florida

What Coverage Is Required In Florida

In Florida, to purchase a tag, you must carry:

  • A minimum of $10,000 of personal injury protection (PIP)
  • A minimum of $10,000 of property damage liability

However, Florida’s Financial Responsibility law requires drivers to be financially responsible for bodily injuries to limits of $10,000 per person with a maximum of $20,000 per accident. If a driver or owner of a vehicle does not have sufficient cash reserves to meet the financial responsibility requirement, it is a very good idea to purchase Bodily Injury Liability.

Bodily Injury Liability (BI)

Bodily Injury Liability pays, up to policy limits, for death or serious and permanent injury to others when you are legally responsible for an accident involving your automobile. This coverage also provides legal representation if you get sued.

Property Damage Liability (PD)

Property Damage Liability pays, up to policy limits, for certain damage that you cause to another person’s property through the use of an automobile. The term property is not limited to another vehicle and may include a fence, telephone pole, building or animal

Personal Injury Protection (PIP)

PIP was designed to help reduce the need for Floridians to sue to cover injuries resulting from automobile accidents. PIP covers the named insured and other members of the household. PIP pays:

  • 80 percent of medically necessary expenses;
  • 60 percent of lost wages;
  • 100 percent of replacement services such as child care, housekeeping, or yard work;
  • Up to $5,000 for death benefits
  • The basic PIP limit is $10,000. However, additional PIP may be purchased
  • Auto Coverage - Parts of an Auto Policy
  1. Part A - Liability Coverage
  2. Part B - Medical Payments Coverage
  3. Part C - Uninsured Motorist Coverage
  4. Part D - Coverage for Damage to Your Auto
  5. Part E and F - Other Provisions

Auto Coverage - Who is Covered

The personal automobile insurance policy covers the named insured , spouse, and relatives who reside with the named insured, providing all licensed drivers have been disclosed.  The insurance policy may also cover other drivers who have permission to use the automobile.  In other words, if an insured loans their vehicle, they are most likely loaning their insurance policy as well.

If the person using the automobile lives with the insured or has regular usage of the automobile, they must be added to the policy.  Otherwise, the company may cancel the policy and refuse to pay a claim.

Some automobile insurance policies will not cover a person who is not listed on the policy. Read the policy carefully and/or ask the agent if a permissive user of the vehicle is covered.

Auto Coverage - Bodily Injury Liability

Bodily injury means physical harm, sickness, disease, or death resulting from any of these.  Claims for bodily injury can be for damages such as medical bills, loss of income, and pain and suffering.

Auto Coverage - Property Damage Liability

Property Damage Liability (PD) pays for damages that an insured would be legally liable for resulting in the physical damage to, or destruction of, tangible property of another, including loss of use.  The negligent act must be the result of an activity or operation of the insured covered by the policy .  If the insured is sued, the insurance company will provide legal representation.

All policies issued with personal injury protection must also provide property damage liability for at least $10,000 limit per accident, or bodily injury and property damage liability with a combined single limit of $30,000 per accident.

Auto Coverage PIP - Benefits

Personal Injury Protection (PIP or No Fault) pays 80 percent of all necessary and reasonable medical expenses incurred as a result of a covered injury, regardless of who caused the accident.

PIP also pays 100 percent for necessary and reasonable replacement services that are required by an outside person due to the injured person being unable to perform such duties or services.  Examples of, but not limited to, are: cleaning, cooking, and yard maintenance.

PIP pays 60 percent of work loss and has a death benefit of $5,000.  The mileage is usually paid at the standard rate allowed by the I.R.S.  

All PIP benefits are subject to the deductible, if any, except the death benefit.

Auto Coverage - Medical Payments

Medical Payments coverage is for payment of reasonable expenses incurred for necessary medical and funeral services because of bodily injury caused by an auto accident and sustained by an insured. Generally, the expenses must be incurred within 3 years of the accident.  However, the courts have required payment when a child is injured but it is medically determined that the treatment should be delayed, for example dental work or plastic surgery.

Auto Coverage - Uninsured/Underinsured Motorist

Uninsured/Underinsured Motorist (UM) Coverage pays for "accidental" bodily injury (BI), sickness, or disease, including death, when an insured sustains such injury as the result of an automobile accident and the legally obligated party does not have Bodily Injury Coverage, or does not have sufficient limits to satisfy the injury claim . This includes both economic (actual medical bills and other out of pocket expenses) as well as non-economic (pain and suffering) damages.

The limit of UM must be the same as the BI unless the insured signs a form to reduce or delete the coverage.  The coverage must also be issued as ”stacked” unless a form electing non-stacked is signed by the insured.