What are the auto insurance requirements in the state of Florida?
Currently in the state of Florida, the auto insurance requirements are very minimal. Very minimal, it does not cover much. You have to carry a $10,000 property damage liability policy, which means if you cause an accident, your insurance will pay to repair up to $10,000 worth of damage to someone else’s vehicle, telephone pole, mailbox, whatever you hit. I would tell you that $10,000 in today’s world, with today’s electronic cars and especially in a multi-car accident, $10,000 does not go far and you open yourself up to potential lawsuits by other insurance companies trying to recover their money. So, while $10,000 property damage is the minimal, I would encourage you, if you can, to at least get $25,000 or $50,000 worth of that coverage.
The second type of coverage it’s required, and we’ll probably have to talk about this at a later date because the law might be changing this year as we sit here in spring of 2021. The no-fault system in Florida may be changing if the governor signs it, and we can talk about that later. But the current state of the law is everyone also has to carry what we call PIP, that stands for personal injury protection. And the basic premise of that is it does not matter who is at fault for the accident, your auto insurance company pays 80% of your medical bills, 60% of your lost wages, up to $10,000.
So, the kind of the misnomer is, well, the other guy was at fault. What are you talking about no-fault? Well, there’s two separate things. The other driver who rear-ended you is liable and responsible for the accident. The PIP or the personal injury protection is your portion of your insurance that pays out regardless of fault. So it doesn’t matter if you were at fault for the accident and got hurt. Other driver rear-end you and you get hurt, your auto insurance is always on the hook for paying those bills.