About Florida Automobile Insurance Laws

Basic insurance requirements
Florida insurance law requires that every driver of an automobile obtain from a registered insurance company the basic insurance coverage's of personal Injury protection (PIP) and Property Damage Liability.

Personal Injury Protection or P.I.P. covers your medical, hospital and funeral expenses up to its limits. It also covers others in your vehicle and pedestrians struck by your car. You are covered for up to $10,000. There also may be a deductible. This can be $0, $250,$500 or $1000. A $1000 deductible being the maximum in Florida.

Property Damage liability covers if your vehicle damages another person's property. This could be their car, house, motorcycle, etc. Limits for this are $10,000, $25,000 or $50,000. The minimum in Florida is $10,000.

Types of Coverage

Personal Injury Protection (PIP)
Florida is considered a no-fault insurance state. As such, each driver is responsible for their own basic medical injuries if they are ever involved in an automobile accident. The law requires that you obtain a basic amount of $10,000 protection in this area. The basic policy covers up to 80% of your medical bills and 60% of your lost wages, not to exceed the $10,000 policy limits. Most do not contain a deductible. It does not matter who is at fault in the accident. If you own an automobile and you are involved in an accident, you are responsible for your own basic injuries. Also, if you live in a household and you do not own an automobile and you are riding in a car that is involved in an automobile accident -you will be covered by the insurance policy of the person who lives in your household.

Liability
The liability section of your policy covers you in the event you are at fault in an automobile accident. This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. This coverage also pays defense and court costs. The law requires that you carry $20,000 in total coverage's with a minimum of $10,000 per incident. On your insurance policy it is usually represented as 10,000/20,000 or 10/20. This means that for each covered accident you will be covered for a total loss of $20,000. If there are multiple parties in the accident each will only be able to recover a maximum of $10,000.

Collision
This coverage pays for damages to your vehicle caused by collision with another vehicle or object.

Comprehensive
This coverage pays for loss or damage to the insured vehicle that doesn't occur in an auto accident. The types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.

Medical Coverage
Pays medical expenses regardless of fault when the expenses are caused by an auto accident.

Uninsured Motorist Protection
This is a very important (although optional) portion of your policy. It protects you in the event you are involved in an accident and the other driver does not have insurance. The basic amounts are $10,000/20,000. This means $10,000 per person involved in the accident, to a maximum of $20,000 in total coverage per accident. It is a good idea to buy at least $25,000/$50,000 of coverage in this area. If you are insured with an insurance company who does not offer UM coverage -then find another insurer.

Medical Payments
This is also a very important (although optional) portion of your policy. It protects you for medical bills beyond the confines of the basic PIP portion of your policy. It is a good idea to buy at least $25,000 worth of protection here. If you are insured with an insurance company who does not offer (Med pay) coverage's, find another insurer.

Rental Reimbursement
Although not technically considered insurance, many insurers provide this as an optional feature to the insurance policy. This type of coverage will pay for a rental car if your car is damaged due to an auto accident. Often this coverage has a daily allowance for a rental car. Read this section very carefully, as most are very tricky.

Penalties for not carrying the minimum insurance amounts
The law requires that you carry the minimum amount of insurance described above. If you fail to do so, the state will on a first offense suspend your drivers license. If you obtain the required insurance amounts and pay a reinstatement fee, your license will be reinstated. If you again fail to carry the appropriate insurance amounts your license will again be suspended, and you will be forced to pay $500 to get it reinstated, after you prove that you now obtained the proper insurance amounts. It is advisable not to let your insurance policy lapse for any reason.

Beyond the basic automobile insurance requirements

Financed vehicles
If you financed your vehicle, then in addition to the basic insurance amounts, you will be required by your lender (lien holder) to obtain coverage's for Collision and Comprehensive a/k/a "Comp & Collision" damages to your vehicle.

      Collision damages
      Damages due to colliding with another car or object

     Comprehensive damages
     Damages due to falling rock, theft, fire, flood

Most Comp & Collision sections of your automobile policy contains a deductible. Normal deductible levels are $250, $500 or $1000. It is a good idea to choose a deductible that is not too high. However, this depends on your financial situation.

Leased vehicles
If you choose to lease your vehicle then in addition to the basic insurance amounts required by Florida law, you lessor will normally require that you obtain liability insurance of 100/300/50 in addition to Collision and Comprehensive coverage.

If you own your vehicle outright
Also, look at the age and "book value" of your vehicle and determine for yourself if adding this section to your policy is worth your money.


INSURANCE TIPS

Always have the following in your car or on your person before you drive

• Drivers license
• Insurance card
• Disposable camera
• Blank index cards
• Emergency phone
• numbers of your family and friends
• Special medical instructions

Tips for getting a good insurance policy with great rates

• Ask for referrals from your friends and relatives that have had claims with the insurer
• The test of an insurance company is not in the low rates, rather it is how they respond and pay their claims
• Try not to purchase a policy with a deductible on the PIP
• Never purchase a policy without uninsured motorist protection
• Watch out for high premium financing rates
• Watch out for low ball quotes
• If the insurer requires that you take your car to one of their repair shops -continue shopping

6 Discounts You Should Ask For From Your Automobile Insurer

• Anti lock brakes
• If your car is parked in a garage at nights vs in a parking lot
• Anti-theft system
• Good student status
• Senior discounts
• Short driving distance to work (less than 5 miles)
• Low annual mileage (less than 7,500 miles per year)

8 Factors that may affect your insurance rates

• Age
• Driving experience
• Type of car
• Where you live
• Driving history
• Deductibles
• Credit rating
• If you use your car for business

Other tips

• It is a good idea to have your insurance portfolio (auto, home, life, health, business, etc) policies reviewed at least once per year, by an independent risk manager or insurance consultant. Find a consultant that does not sell insurance and so will have no vested or competing interests.
  
• Never loan your car to friends or co-workers. You maybe responsible for damages and injuries that they may cause.