WHAT CAR INSURANCE IS REQUIRED UNDER FLORIDA LAW?
In Florida, the minimum insurance required is property damage (“PD”) and No Fault Insurance (also known as “PIP” or personal injury protection). Both PD and No Fault insurance are typically sold in increments of $10,000, though it is possible to choose a deductible for your No Fault insurance. However, neither of these insurance options cover you if you cause physical injury to another motorist, cyclist or pedestrian, and if that scenario occurs your driver’s license could eventually be suspended if you did not have at least the minimum Bodily Injury coverage of $10,000.
Note: “PD” only covers damage caused to another person’s vehicle or other property. It does not cover anything related to injuries, but only to property. “No Fault” only covers you and those listed under your policy for your medical bills arising from an incident involving your vehicle. Therefore, if a person purchases only the minimum insurance required by the State of Florida—which is PD and No Fault—but that driver causes physical injury to another person, then neither PD nor No Fault cover those injuries to the other person.
To cover that situation where another person is injured, the driver would need to have Bodily Injury (known as “BI”) coverage. One of the benefits of having Bodily Injury coverage in Florida is that your insurance company has the obligation of defending you if you were involved in a traffic crash. This means an adjuster and eventually an attorney may be employed by your insurance company to defend you. Another benefit of having Bodily Injury coverage is your insurer covers you for accidents up to the limits of insurance coverage you have chosen. That is why it is important to plan ahead for: 1. how much coverage and also 2. what type of coverage you want before an accident occurs.
SUMMARY: WHAT CAR INSURANCE IS REQUIRED UNDER FLORIDA LAW?
Florida law requires a person to carry property damage (“PD”) insurance which covers you for damage to the property of others. Florida law also requires you to carry No Fault on yourself. Both PD and No Fault are typically sold at $10,000 increments. This is all that is required for a person in Florida to carry as long as the person is not in an automobile accident. If a person is involved in an auto crash it is then that the State of Florida contends you should have also had Bodily Injury (“BI”) insurance. BI coverage is insurance for injuries caused to another person. If a person caused injuries and had no BI they could have their driver’s license suspended.
ABBREVIATIONS FOR COVERAGE
PD—Covers the other person’s car or property for damage caused by you.
No Fault/PIP—Covers you for medical bills regardless of who was at fault.
BI—Covers the other person’s medical bills, wage loss, and injuries caused by you.
