Florida Car Insurance Requirements
Car insurance in Florida is different than most other states in that it is divided into two separate legal categories: financial responsibility and no-fault. The financial responsibility category has to do with accidents that result in serious injuries or death to another driver. The no-fault category covers accidents that do not meet the threshold for serious injuries.
Minor fender benders and crashes that don’t result in major injuries or deaths are covered under the no-fault statute. In such a case each driver’s insurance would pay medical bills that result from treating minor injuries such as broken bones, cuts and scrapes, etc. The no-fault law requires a minimum liability policy to provide:
- $10,000 per accident – personal injury protection (PIP) coverage
- $10,000 per accident – property damage coverage
Florida’s financial responsibility law covers accidents that are more serious. It allows for personal injury lawsuits if the cost of treating those injuries exceeds a certain dollar amount. For this category a minimum liability policy must include:
- $10,000 per accident – injuries or death to a single victim
- $20,000 per accident – injuries or deaths to multiple victims
- $10,000 per accident – property damage
- $30,000 per accident – combined a single limits
Maintaining Car Insurance in Florida
Florida law requires all vehicles with at least four wheels to be covered by liability insurance if owners want to register and drive them. Individuals have the option of purchasing a cheap car insurance policy including only minimum liability or a policy with additional coverages like collision, comprehensive, etc.
Individuals and businesses can self-insure if they can prove they have the financial resources to meet potential obligations. For individuals that means they must have an unencumbered net worth — meaning cash and assets that are considered disposable — of at least $40,000.
As long as a vehicle remains registered and plated in the state of Florida car insurance is required. Drivers who allow their insurance to lapse face an immediate suspension of their registration and plates. The state may also choose to suspend a driver’s license if deemed necessary. Suspensions can be as long as the three years if drivers fail to meet certain insurance requirements.
Providing Proof of Insurance
Proof of an active car insurance policy must be furnished any time a police officer requests it. In Florida car insurance companies provide their customers with insurance ID cards that can be used as proof of their policies. If you fail to carry an ID card in your car and produce it during a traffic stop or accident investigation, you can be given a citation by the officer.