Understanding the Different Types of Auto Insurance in Florida
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On average, there are approximately 1,000 car accidents daily in Florida. That number is frightening, especially considering that 231,178 car accidents resulted in property damage, and over 150,000 caused injuries.
According to the most recent census data, the state's annual cost of motor vehicle crashes was $10.75 billion. Without insurance, this represents a significant financial burden on vehicle owners. Thankfully, various types of auto insurance in Florida help combat individual costs. Still, the level of relief depends on the coverage, and in most cases, mandatory minimums aren't enough.
Introduction to Auto Insurance in Florida
You must have car insurance in Florida if you own a vehicle with at least four wheels. You don't need comprehensive coverage — though it is a good idea — but your car needs to meet mandatory minimums for personal injury protection and liability coverage.
For any car registered in the state, you must maintain continuous coverage. It doesn't matter if the vehicle is inoperable or parked in storage. The only way you can cancel your insurance policy is to surrender the license plate.
Even non-residents need vehicle registration and insurance coverage if they accept employment in the state or enroll children in Florida public schools. Those who fail to meet state requirements will face consequences, such as having their license or registration suspended.
Understanding Florida's No-Fault Law
Florida's no-fault insurance law requires all drivers to file claims for injuries from auto accidents with their own insurance companies. Because of this, every type of auto insurance in Florida must include personal injury protection (PIP) or no-fault insurance.
PIP coverage pays the medical expenses of the policyholder, their household members, and passengers. If you only purchase the minimum required coverage, your insurance company may not cover every medical expense, leaving some costs to be covered out-of-pocket.
While no-fault laws provide quicker access to medical care because it is not necessary to determine fault before treatment, there are drawbacks. Because PIP is a requirement, insurance premiums might be higher. A low coverage limit can also result in limited compensation for severe injuries. Still, PIP coverage is the quickest way to receive medical care following an accident.
Required Coverage in Florida
So, what are the two types of car insurance that are required in the state of Florida? Every Florida vehicle owner must have PIP and property damage liability (PDL) coverage. The state requires a minimum policy of $10,000 for PIP and PDL coverage.
A PIP policy typically covers 80 percent of all reasonable medical expenses up to $10,000. You can and likely should purchase extended coverage, which covers up to 100 percent of medical costs and 80 percent of lost income. Drivers can buy an insurance policy with coverage of up to $500,000 per person and $100,000 per accident.
PDL coverage pays for damages to other people's property. If you stick with the minimum coverage requirement, you have to pay for any damages over $10,000. As with PIP coverage, you can purchase additional PDL protection. Some insurers suggest coverage of $100,000 to protect against future financial strain.
Review the insurance requirements of your state:
Optional Auto Insurance Coverage in Florida
You can invest in several policies beyond PIP and PDL, including bodily injury liability, which covers medical expenses for anybody injured in an accident you cause.
Collision coverage provides funds for damage to your car, whether you collide with another vehicle or object. In the same coverage vicinity, comprehensive protection covers damage to your vehicle from non-collision incidents, such as theft, vandalism, or fire.
Uninsured or underinsured motorist coverage pays out when you get injured by an uninsured motorist and need medical attention for a bodily injury. You use this coverage when the uninsured motorist is the at-fault driver.
As you can see, the various types of car insurance in Florida can offer well-rounded protection. That said, cheap car insurance in Florida might suit your needs better than a more comprehensive insurance policy. Take your time when selecting coverage options, and always compare quotes.
Understanding the Costs of Coverage
The types of auto insurance in Florida play a role in the overall costs, but insurance quotes depend on many factors, such as claims history, credit score, vehicle type, and driving record.
On average, you'll spend about $1,125 annually for minimum coverage. For full coverage, you can expect to pay somewhere around $4,000 yearly.
How To Choose the Best Auto Insurance for Your Needs
Finding the best car insurance for your needs is about balancing affordability and protection.
If you have a limited budget, consider choosing a higher deductible to increase coverage while lowering your payment. While deductible adjustments can help lower monthly costs, it's a good idea to set aside the deductible value in a savings account so it's there should you need it. Don't wait until you're in an accident to scrounge up the money.
Get a Quote Now To Find the Best Coverage for Your Needs!
Certain types of auto insurance in Florida are required, but you may want to purchase more than the state mandates. To truly feel secure, you should buy enough coverage to protect yourself, your property, and others.
You can assess the actual value of an insurance policy by comparing quotes. EverQuote allows you to compare several top insurers in Florida to find those that offer the most value for the money.