What do I need to know about Florida Automobile Insurance?

When asked what type of automobile coverage they have, many people simply answer "full coverage", but full coverage means different things to different people. In this explanation, we will address what full coverage actually is and why some people who believe they have "full coverage" actually leave themselves exposed.

Florida law requires every owner or registrant of an automobile in the state possess automobile insurance. However, the only automobile insurance required by Florida law are property damage liability in the amount of at least $10,000.00 and personal injury protection (PIP) coverage. Many people mistakenly believe that if they meet the requirements under Florida law, they have full coverage. As the descriptions of the various categories of automobile insurance below indicate, the Florida requirements constituate a very bare minimum and rarely adequately protect those involved in automobile accidents. The statutory minimum alone does not constitute full coverage. Essential coverages, including bodily injury coverage, uninsured motorist coverage and collision, are not required by Florida law.

Categories of automobile insurance coverage can be described as follows:

1. Property damage liability, which pays for repairs to the other party's vehicle if an automobile accident is your fault.

2. Personal injury protection (PIP), which is the Florida no-fault insurance. Under the law, no matter who is at fault, your own automobile insurance must pay the first $10,000.00 in losses. Therefore, your own automobile insurance pays 80 percent of all reasonable and necessary medical expenses and 60 percent of lost wages and household expenses, such as cleaning and lawn work, you could perform except injuries sustained in the automobile accident, up to $10,000.00.

3. Collision, paying for repairs to your vehicle unless another party is at fault for the accident and that party's insurance will pay for the repairs.

4. Bodily injury coverage, providing payment to persons other than yourself for their personal injuries if you are at fault in an automobile accident.