What Type Of Insurance Is Required By Law?

Insurance laws vary from state to state, so if you’ve just relocated to Florida, you’re most likely confused and your head is brimming with questions. One such question is probably what type of insurance is required by law.

The straightforward is that car insurance is required. However, there are certain details you should know about insurance, including the minimum insurance coverage. 

Let’s go over the key details. 

Types of vehicles that require car insurance

Say what you will about The Sunshine State, but it’s very common to see all kinds of vehicles on the street. This is especially true for coastal areas where many residents use vehicles such as golf carts and go-karts. 

Do these vehicles need insurance? 

No. They’re not traditional vehicles, as such, they don’t require an insurance policy. 

Still, the state of Florida does require all standard 4-wheel (and vehicles such as motorbikes) vehicle owners to maintain the minimum auto insurance coverage.

Furthermore, it’s also necessary to carry valid and current proof of insurance every time you’re operating the vehicle. If you’re pulled over by law enforcement or you’re involved in an accident, you’ll have to produce these documents to the police officer. 

Lastly, you’ll need proof of Florida coverage each time you register a new vehicle. 

What type of insurance is required by law in Florida

Insurance is something you hope you will never use, yet you’ll be thankful for it if you’re ever involved in an auto collision. At the moment, Florida has state laws that set strict requirements for insurance.

So what type of insurance is required by law?

There are two.

The first is Personal Injury Protection (PIP) which requires a minimum of $10k in coverage, and $10k for Property Damage Liability (PDL) insurance.

The first of the two is generally more important because its purpose is to cover medical expenses and other damages such as lost wages. Because you can file a claim regardless of the fault and receive a payout, this type of coverage is also often referred to as “no-fault” insurance. PIP coverage will help protect you from small lawsuits that may necessitate additional funds if you’re held liable for the accident. 

But what about the coverage your insurer recommends, the Bodily Injury Liability (BIL) insurance?

Although not required by the state, it’s very wise to purchase this coverage. After all, it protects you in case you’re at fault for a car accident where serious bodily harm or death occurred. Despite the Sunshine State being a no-fault state, you can still be sued by the other party for the accident if the damages are higher than your minimum requirement. 

This means that even if you have insurance, you may end up paying for damages out of your own pocket. 

What is no-fault liability in Florida?

Out of all 50 states, only twelve operate under the aforementioned no-fault liability, the Sunshine State being one of them. Because of its no-fault status, each citizen will pay for their own accident expenses, regardless of who caused the accident. 

While this is perfectly fine in minor accidents, if the damages exceed the amount of your policy coverage, they can very well sue you to recover the full damages. Upon filing the claim if the court rules you’re the liable party, you’ll be required to pay for all the damages. 

Thus, carrying only the minimum amount of coverage can cause a lot of trouble if you end up causing an accident. This is why it might be best to purchase additional coverage, just in case. 

Best types of optional coverage

To fully protect yourself and your finances if you’re involved in an accident,e recommend purchasing the following coverages:

• Bodily injury liability: 

We already spoke about this coverage because it’s one of the best ways to minimize your out-of-pocket expenses if another person is harmed by your negligence. 

• Collision coverage: 

Collision insurance can serve as another line of defense in an accident. It’s meant to cover any damages that you may receive as a result of a traffic collision. This is coverage you must absolutely purchase because the basic PIP coverage doesn’t cover collision damage. 

• Comprehensive coverage

In Florida, collisions are the least of your worries. Since the basic coverage doesn’t address any damage caused by acts of nature, any unexpected event can lead to an astounding amount of financial harm. In the Sunshine State, comprehensive coverage includes protection from hail, floods, hurricanes, and lightning damage. In addition, this coverage also protects you from auto theft and different types of accidents that don’t fall into the category of vehicle collisions. 

Your insurance company may also offer additional coverages such as medical coverage (a policy that strictly pays for hospital stays, treatment, and other expenses in case of a serious accident) and roadside assistance. 

• Uninsured/underinsured motorist coverage

Lastly, this insurance can help protect you if the other driver has limited coverage or has low coverage amounts. If you’re involved in an accident and this is the case, this coverage will kick in and essentially cover the losses that are the duty of the liable driver. Many Florida motorists carry the minimum amounts of coverage which is why this policy is so important as it can help protect you from financial problems if you’re involved in an accident with such a driver. 

Seek help from the Law Offices of RITE

Now that you’re familiar with what type of insurance is required by law, you should explore other coverage options. They may seem like a redundant cost, however, they can help you if the worst happens.

If you were already involved in an accident and you had minimum insurance your policy is unable to account for all the expenses incurred in the accident, you should reach out to Law Offices of RITE.

We’re one of the best car accident attorneys in Florida, and signing up with us allows you to focus on your recovery while we handle the legal side of things and help you recover the full amount of damages. 

Call (904) 500-RITE (7483) or send an email to info@rite4justice.com and sign up for a free case evaluation.

Note: 

The information in this blog post is for reference only and not legal advice. As such, you should not make legal decisions based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.