5 facts You Need to Know About Auto Insurance in Florida
A Guide to Auto Insurance in Florida
Auto insurance laws differ from one state to another. If you’re new to Florida or just bought your first car, there are a few things you need to know about auto insurance in Florida. Understanding the state laws can help you save money. Best of all, it can keep you safe from penalties and give you peace of mind when driving your car.
Here are five facts to know about auto insurance in Florida:
1. What’s the Minimum Auto Insurance Coverage in Florida?
Insurance companies provide many types of auto insurance. That said, only two are mandatory in Florida. These are Personal Injury Protection (PIP) and Property Damage Liability (PDL).
PIP covers your medical expenses from an auto accident. The minimum coverage amount is $10,000. So, if your policy covers $10,000 and your medical bills are $20,000, the insurance company will only pay $10,000. Depending on your ability, you can insure a higher amount than the minimum required.
PDL covers the damages you cause to a third party during a car accident, such as crashing into a house or fence. The minimum coverage for this liability insurance is also $10,000.
If you drive a car in Florida without the minimum coverage, your license, license plate, and driver’s license can be suspended for up to three years. After that, you’d have to pay a reinstatement fee of up to $500.
2. What Other Auto Insurance Policies Are Available in Florida?
PIP and PDL are minimum requirements by the law. But they won’t cover damages comprehensively. For instance, they won’t cover repairs to your car or anything stolen from your vehicle. You need more insurance coverage like:
- Collision insurance – Covers repairs to your vehicle after an accident.
- Comprehensive coverage – Covers losses resulting from non-collision events like theft, flood, and vandalism.
- Bodily injury liability – Pays medical expenses for anyone injured from an accident you caused.
- Uninsured motorist coverage – Covers your bodily injuries, passengers’ injuries, and damages to your car caused by an underinsured or non-insured driver.
3. Does No-Fault Auto Insurance Apply in Florida?
Florida is a no-fault state. That means your insurance provider will compensate you regardless of who caused the auto accident. Bear in mind that the no-fault law applies only to medical expenses resulting from personal injury. It won’t help if there are damages to properties or the car.
If your medical bills exceed your insured amount, you can file a lawsuit to recover the balance from the driver who caused the accident. But you can’t do that if it was your fault or your PIP coverage is sufficient to cover all medical bills.
4. What Factors Determine the cost of Auto Insurance in Florida?
Contrary to a popular myth, a red car doesn’t cost more to insure. Some insurance facts that determine coverage costs in Florida include:
- Credit score – Actuarial studies reveal that people with a higher credit score are more responsible with money and less likely to file insurance claims. Hence, the higher the credit score, the lower the insurance rates.
- Driving record – If you have had accidents in the past and filed insurance claims, your rates can be higher than a person with no accident history.
- The car’s value – Generally, the more expensive the car, the higher the premium.
Other factors contributing to auto insurance costs include age, annual mileage, location, and driving experience. It’s crucial to note these rates vary by the auto insurance company because they don’t use the same calculation method.
5. Who Pays the Claim If You Lend Your Car to Another Driver?
Any time you lend your car to another driver, your insurance company bears responsibility for any potential accident. That remains the case even if the driver has auto insurance. In a word, an auto insurance policy runs with the car.
So, before lending your car to any driver, understand that their recklessness can impact your driving record and insurance premiums.
Get the Best Value from a Reliable Insurance Agency
There are many facts to consider about auto insurance in Florida. But it would be overwhelming to state them all. That’s why you need a reliable insurance agency with a broad understanding of the industry.
Coleman Insurance Agency is here for you if you need auto insurance in Clearwater. We have friendly and reliable agents who understand auto insurance, as well as homeowners’ insurance in Clearwater. Get in touch with our team or call us at (727) 441-9911 to schedule a free consultation for car insurance.
Comments are closed