Florida Auto Insurance Laws what’s the deal with the minimums?
Florida Auto Insurance Laws seem a little scary to me. Is it correct that Florida only requires 10,000 and 10,000 for minimum coverage?
I was in an accident in a state with 25,000 & 50,000 for the minimums and even though I was not at fault I ended up still owing 40,000 after the insurance paid the full policy. It was explained that if all you carry is the minimum coverage than that’s what you get…How can it be only 10,000 & 10,000 in Florida?
Hello Beth,
You are indeed correct about the minimum mandatory coverage in Florida being 10,000 (Personal Injury Protection) and 10,000 (Property Damage Liability). Each states legislature determine the auto insurance laws for that particular state. Every auto insurance policy carries a provision that increases the coverage on your policy to comply with the minimum of the state your driving in. As long as you have a valid auto insurance policy you can cross state lines and be in compliance with that states minimum requirement.
Besides the minimum mandatory requirement in Florida (No Fault Law) there is another law in Florida you should be aware of called the Financial Responsibility Law. This law states that a driver who carries 10,000 per person and 20,000 per accident of bodily injury liability, in addition to the minimum mandatory No Fault, is conducting themselves in a financially responsible manner. If your at fault in an accident, causing injuries, and are in compliance with the Floirda Financial Responsiblity law the state will take no adverse action against you, such as suspending your license until you pay the injured party. This in no way means that the injured party couldn’t sue you for more than the insurance you carry but the State of Florida will leave you alone.
From your own personal experience you can see that being in compliance with Florida’s No Fault and Financial Responsibilty Laws does not adequately protect you if you’re in a serious accident. Higher liabilty limits as well as uninsured motorist coverage should always be carefully considered when purchasing an auto insurance policy.