Every state has their own specific car insurance laws. Most states require liability insurance, which is insurance that will cover damage to another’s person and/or property if the damage is caused by the driver. However, not all states require this and some states require a bit more than this. It can be particularly difficult to understand Florida insurance laws. Below are some of the most important factors about Florida auto insurance requirements.
No Fault State
Florida is one of the United State’s 12 no fault states. This simply means that when two or more cars get into an accident, all parties must file claims with their auto insurance providers, no matter who was at fault for the accident. This keeps claim costs low, since each auto insurance provider is required to compensate their own policyholders. Even more specifically, Florida is a verbal-threshold, no fault state. There are thresholds set in place that must be surpassed by the policyholder’s injuries before a suit can be filed. In monetary threshold states, this threshold is in terms of the dollar amount required to treat the injuries. However, in verbal threshold states, like Florida, the injuries themselves must be of a certain severity.
Personal Injury Protection
Personal Injury Protection or PIP is a Florida auto insurance requirement. This kind of insurance will cover the driver’s expenses as long as they are related to injury, no matter who caused the accident. It is required that drivers have at least $10,000 in PIP, which may be used to cover medical costs, lost wages, and even funeral costs.
Bodily Injury Liability Insurance
Bodily injury liability or BIL is a certain type of Florida insurance that is only required for certain drivers. This may be specifically applicable to drivers that have a previous history of auto accidents. This insurance will help to pay for severe injuries specifically, so this will not cover damage to vehicles or personal property. If a Florida resident is required to have BIL insurance, they need to have a minimum of 10/20. When they pay for this kind of insurance plan, the insurance company will pay as much as $10,000 per person for injuries to the other party, but they will pay no more than $20,000 in total. This is the minimum plan because it will pay for the injuries of about two other people on average.