04 Oct Florida Auto Insurance Explained
Auto insurance standards are different from state to state. Florida is one of the only remaining no-fault states left in the US. What this means that as long as you are not in an accident you do not need to have bodily injury liability insurance. There with this is that at the time of an accident, you can’t call your agent to upgrade your insurance, therefore, you are fined and at that time will be ticketed of not having insurance and have to file for the next 5 years an SR-22.
Florida law requires very basic insurance. If you own a motor vehicle with four or more wheels you must carry $10,000 of PIP insurance and a minimum of $10,000 of property damage (PD) liability insurance. You may have a deductible of up to $1,000 for PIP coverage and $500 for property damage liability. This insurance will allow you to put tags on your car. But it is not real protection.
PIP insurance – Personal injury protection insurance covers you regardless of whether you cause an accident (are “at-fault”) − up to $10,000 minus your deductible amount. PIP is designed to reduce the necessity of suing for reimbursement of medical and related bills from auto accidents. PIP pays:
- 80 percent of reasonable medical expenses related to the accident.
- 60 percent of lost wages as a result of the accident.
- $5,000 for death benefits.
Your PIP coverage can include you, relatives who live in your home, certain passengers who do not own a vehicle, and others who drive your car with your permission. Pedestrians and bicyclists are also covered if they are Florida residents. If an accident happens out of FL, coverage may change to that state requirements.
Property damage liability insurance (PD)
Property damage liability insurance pays for damage that you, cause to another person’s property while driving. This coverage follows you so it will apply even if you drive someone else’s car.
Bodily injury liability insurance (BI)
This portion is not required by law in Florida. However, if you get a DUI, you will be required to this portion on your insurance for 3 years to keep your license. You must have limits of $100,000 per person and $300,000 per accident, and a minimum of $50,000 in property damage coverage.
BI pays for injuries to others when your car is involved in an accident and you are at fault. BI coverage will pick in after PIP benefits are exhausted.
- Collision insurance – this portion pays for the damages to your car that were caused while the car was been driven – in motion. With most carriers there is deductible that will apply before the carrier pays.
- Comprehensive insurance – this portion pays for the damages to your car other than collision. Examples would be fire, theft, windstorm, vandalism, flood or hitting an animal. Damage caused by falling objects is also covered under this policy. If you have comprehensive coverage, windshield replacement is the only claim for which you are not charged a deductible. Florida law requires this waiver to encourage drivers to immediately replace damaged windshields. When you finance or lease your car, you will be required to add this coverage. It is not required by law.
- Uninsured motorist (UM) – this coverage will apply if you are involved in an accident and you are not at fault. The coverage will kick after the PIP and the BI of other cars insurance policy.
- Medical payment – covers medical expenses, beyond those covered by PIP. Your health insurance also covers medical expenses from auto accidents beyond those covered by PIP.
- Rental reimbursement – reimburse for car rental if an accident leaves your car unable to be driven.
- Towing – will cover the tow after an accident
Auto insurance is rated based on many different factors including: your credit score, your driving history, your zip code and the type of coverage you are getting. Your track record also counts, carrier look to see how long you have had insurance and at what limits.
Here is a short video that Kemper insurance did to explain the different coverage
Please reach out to us to review together your insurance and see if we can help find solution that better fits your needs.
Marker Insurance 954-456-7605
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