Florida Auto Insurance Requirements: Coverages & Costs (2024)

Like many states, Florida sometimes requires residents (and non-residents) to maintain auto insurance coverage on vehicles registered in Florida. Failure to comply with state-mandated insurance requirements can result in suspension of driver’s license and registration and costly fines. 

In this article, we’ll explain everything you need to know about auto insurance in Florida, including costs and insurance laws. Let’s dive in.

Key takeaways

• Florida requires all drivers to carry property damage liability and personal injury protection coverages.
• Florida is a no-fault insurance state. 
• Driving without insurance in Florida can result in suspension of driver’s license, vehicle registration, and fines.
• Geico provides the lowest minimum coverage auto insurance rates in Florida.
• There are no exceptions to Florida’s mandatory minimum insurance regulations. 

What is the Minimum Car Insurance Required in Florida?

Not only are Florida drivers required to carry auto insurance, but specific coverages must also be included in the policy, and those coverages must meet minimum coverage limit requirements. The minimum car insurance required in Florida includes:

• Property Damage Liability (PDL) with minimum limits of $10,000
• Personal Injury Protection (PIP) with minimum coverage of $10,000
• Bodily Injury Liability (for vehicles registered as taxis): $125,000 per person, $250,000 per occurrence, and $50,000 PDL minimum coverage. 

It’s important to note that complying with state minimums does not release you from liability for occurrences that exceed those limits, whether in a no-fault or at-fault state. Talk with your insurance agent about the coverage limits that are best for you to protect your assets from a liability claim. 

Property Damage Liability Insurance Required in Florida

Property damage liability provides coverage when you are liable for damage to another vehicle or other property resulting from a collision with your car. Property damage liability claims can be costly. Whether a claim results in the total loss of a luxury vehicle or damage to a fence, bridge, or nearby business, the financial risk from property damage liability can be significant. 

Property damage liability is a standard coverage option for Florida auto insurance companies. However, the limits available for this coverage can vary greatly, starting with the $10,000 required by the state. However, a $30,000 claim with $10,000 in coverage leaves you with personal financial responsibility for the other $20,000. Understanding the importance of property damage liability coverage limits can prevent substantial financial loss. 

Because liability coverage is so crucial, it is often the most costly part of an auto insurance premium. On average, Florida drivers pay $858 annually for auto liability coverage. The average premium for a full-coverage policy is $1,257. 

PIP Insurance Required in Florida

Personal Injury Protection (PIP) is one of the two Florida-mandated auto insurance coverages. Personal Injury Protection is the bodily injury equivalent of Property Damage Liability coverage. PIP covers 80% of necessary and reasonable medical expenses, up to the coverage limit ($10,000 required minimum) for an injury resulting from an auto insurance claim, regardless of who was at fault. 

Once again, maintaining the required minimum requirements for PIP coverage does not mean you are not responsible for medical expenses exceeding the $10,000 coverage limit if you choose to go with the state minimum limit. It also does not ensure you won’t be sued for medical bills exceeding $10,000 if considered at fault in an auto accident, even in a “no-fault” insurance state such as Florida. “No-fault” simply means that certain coverages pay out on an insured’s policy, regardless of who is at fault. It does not release the responsible party from the possibility of litigation. 

The average cost of PIP coverage for Florida drivers is $188 per year. The specific cost for a particular driver is determined by many things, including the insurer they select, individual demographics, vehicle, use of vehicle, driving history, individual discounts, and much more. 

Driving Without Insurance in Florida

Driving without insurance is never a good idea. The risk of legal liability, damage to your property, and damage to the property of others is simply too great. However, driving without insurance in Florida will result in additional concerns, such as whether or not you have a claim. 

Penalties for driving without insurance in Florida include the following:

• Suspension of driver’s license
• Suspension of vehicle registration
• $500 reinstatement fee
• Repeated offenses could result in up to three years of suspension of the driver’s license and vehicle registration. 

There are a few important things to consider to prevent penalties for driving without insurance in Florida. You must obtain Florida auto insurance before driving a newly purchased vehicle or attempting to register your car with the Department of Highway Safety and Motor Vehicles (FLHSMV). You must relinquish your registration before canceling your auto insurance. There are no exceptions for financial hardship, insurance company cancellation, inoperable vehicles, or other extenuating circumstances.

Other Florida Car Insurance Laws

Florida insurance laws apply to residents and non-residents who work in Florida or enroll children in a Florida public school. According to Florida law, new residents and non-residents who work or have students in school in Florida have ten days to obtain Florida insurance and vehicle registration.

An insurance company that is licensed to sell car insurance in Florida must issue proof of auto insurance coverage. If you move to Florida, do not cancel your insurance or registration in the other state until you have obtained these items in your new state. The same applies when moving from Florida to another state. 

If your insurance company is licensed to sell in Florida, you may be able to stay with the same company when moving to Florida. This can make the process easier. At any rate, a move is a good time to compare insurance rates. 

It is possible to self-insure in Florida, but qualifications are very specific, and eligibility is rare. Self-insuring is not an insurance policy, and not everyone is eligible. To self-insure, you must meet the financial net worth requirements outlined in Florida Statute Section 324.171, submit an application and documentation, and receive a certificate of self-insurance. 

Additional Coverage to Consider in Florida

Although Florida requires property damage liability and personal injury protection coverages, many other optional coverages are available and may even be required by other entities, such as a lender. 

Additional auto insurance coverage to consider in Florida include:

Average Florida Car Insurance Costs

The cost of auto insurance in Florida can vary depending on the insurer and driver's information. However, below, you can find annual Florida car insurance costs for several major insurance companies to compare to the average Florida car insurance costs for minimum coverage of $1,055 per year and full coverage average cost of $3,451.

What Affects Car Insurance Costs in Florida?

Many factors, from population size to insurance legislation, affect the cost of car insurance in each state. 

Here are a few ways car insurance rates in Florida are impacted.

• Dense Population: More people mean more cars on the road and more opportunity for claims.
• Heavy Traffic: Urban areas have a lot of people, and road congestion can create additional claim activity. 
• High Number of Uninsured Drivers: Uninsured drivers burden uninsured and underinsured coverages more. 
• State-Mandated Coverages: Required insurance coverages leave less premium flexibility for insureds.
• Number of Insurers: Due to many of the above factors, particularly vulnerability to large weather-related catastrophes, fewer insurers may choose to offer coverage in Florida.
• Driver History and Demographics: Rates for each individual may be impacted by all of the above in addition to their personal risk factors. 

Policyholders cannot control many of the above factors affecting their insurance, but the best thing they can do is compare multiple insurers to make sure they are getting the best rate available from Florida insurers.

FAQ: Florida Car Insurance Requirements

How can I save money on car insurance in Florida?

Car insurance rates can vary significantly from company to company and person to person. That’s why comparing auto insurance quotes with multiple insurers is crucial. As you compare quotes, remember the following tips to help you save money on your car insurance. 

Here are some additional ways to save money on car insurance in Florida.

• Keep a clean driving record. Speeding tickets, at-fault accidents, reckless driving, and DUIs can negatively impact your premiums. 
• Ask about discounts. Insurance companies offer various discount opportunities to help reduce your overall premium. 
• Bundle your policies. Insuring your home and car together can help you save money. 
• Pay in full. Discounts for paying in full rather than monthly can be substantial.
• Take advantage of loyalty discounts. The longer you stay with one insurance company, the better the opportunity for long-term customer discounts. 
• Review your coverages. Ensuring you understand your coverages and whether they are more or less than you need is crucial to preventing inadequate or uncovered claims. It can also save you money on your premiums. Consider raising your deductibles where you can. 

Don’t wait for an insurance company to discuss ways to lower your insurance. Be proactive and ask about any additional premium reduction opportunities, even if you don’t currently qualify for them, so that you can work towards future eligibility. Check rates frequently. What might be the least expensive insurance company now could change completely in a year. 

Don’t forget your current insurance company when comparing insurance quotes and types. Ask if you aren’t taking full advantage of anything that has recently changed. You are your own best advocate for the best auto insurance rates for you and your family. 

Does Florida require full-coverage car insurance?

The state of Florida does not require proof of insurance for full-coverage automobile insurance, which comprises some combination of liability and medical payments coverage, comprehensive coverage, and collision coverage. For most drivers, Florida only requires property damage liability and personal injury protection coverage. 

Other entities, such as a vehicle lender, may require comprehensive and collision coverages. In addition, just because coverage isn’t required doesn’t mean it's not a good financial decision. Even a vehicle that is paid off or has never had a loan can have significant value and be difficult to replace without proper coverage in case of an accident, theft, or other claim. 

Do you have to have car insurance in Florida?

In Florida, the only way to avoid being required to carry a minimum amount of car insurance is to relinquish your vehicle registration or self-insure. If you turn in your car tag/registration, you cannot legally drive your vehicle. In order to self-insure, very specific financial parameters must be met, and a certificate must be issued from the state.

In short, all drivers with current registrations must at least have Florida auto insurance that provides coverage for property damage liability and personal injury protection. 

Is bodily injury required in Florida?

In lieu of bodily injury liability coverage, Florida requires its drivers to carry personal injury protection (PIP), similar to bodily injury coverage, except that bodily injury liability only applies in at-fault accidents for the other party. In contrast, PIP coverage applies regardless of fault.

Article written by Shawnette Good. 

Shawnette is an insurance professional with 30 years of industry experience helping consumers understand complex insurance topics. Outside of writing, Shawnette enjoys long nature walks and volunteering in her community.