Florida Car Insurance Guide

Florida attracts newcomers of all ages simply because it stays true to its nickname, The Sunshine State.

Young singles, families, and even retirees who want to escape the blistering cold the winter brings all relocate to the highly desired Sun Belt location of the southeast. This is why Florida is one of the top destinations for people who are seeking change.

If you’re new to Florida, don’t expect the insurance laws to be the same as they were in your old state. Insurance laws vary from state to state, and Florida has some unique insurance laws.

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Drivers who don’t know where to start might be best off referring to a guide before they register their cars in the state. Here’s a useful Florida car insurance guide that contains the information that you need to buy adequate coverage at a low price.

Auto Insurance Laws and Requirements in Florida

 

Anyone who owns a car has the responsibility to maintain it.

Vehicle owners in Florida also have the responsibility to keep insurance on any car that’s registered in their name. Any legislation about financial responsibility and motor vehicles is called the state’s Financial Responsibility Law.

– What is Florida’s financial responsibility law?

Financial Responsibility Laws are critical. They state what vehicle owners are required to do to demonstrate that they are financially responsible enough to pay for damages that could be incurred when in an auto accident.

Some states have mandatory insurance laws and others offer alternative options to satisfy the law.

In Florida, your only option when you register a vehicle through the Department of Highway Safety and Motor Vehicles is to buy mandatory insurance.

Since Florida is a no-fault state, the mandatory coverage that you’re carrying must comply with the state’s no-fault rules. Carrying insurance from a provider in another state will not satisfy the law.

– What is a no-fault state?

If you’ve never heard of a no-fault insurance system that’s probably because it’s not that popular. Most states have a fault-based tort system in place for handling auto-related injury claims.

In Florida, however, the fault is not used to determine who is responsible for paying for injury damages.

In no-fault states like Florida, everyone must carry insurance coverage to pay for their medical bills. Instead of filing a claim against an outside insurer, you’ll file a claim for reasonable and necessary medical treatment through your own agent.

The idea is that the state can reduce the burden on the court systems by allowing insurers to handle their own claims instead of requiring victims to file lawsuits.

– What are the minimum coverage requirements?

To maintain a Florida license plate, you need to buy the required no-fault coverage. No-fault coverage pays for you and your passenger’s medical bills and related expenses like disability income.

You also need to purchase coverage that will cover property damage that you cause while your vehicle is being operated. Here are the limits that are mandatory in FL:

• Personal Injury Protection (PIP) – $10,000 for all reasonable medical expenses
• Property Damage Liability (PD) – $10,000 to pay for damaged property owned by others when you’re in an at-fault accident

– Process for New Drivers to Get Licensed

You have to be able to prove that you have the skills and the knowledge to be granted a license in Florida. If you’re officially a resident in the Sunshine State, you need to follow the state’s licensing procedure, or you’ll face some delays.

Here are the steps that you’ll be expected to take:

• Fill out an application for your Driver License
• Provide proof that you have passed the Traffic Law & Substance Abuse Education Course
• Provide proof of residency and proof of your identity
• Pass the written traffic laws test
• Pass your practical behind-the-wheel driving test
• Pass the vision test
• Pay $48 to have the license issued

– Process for Drivers New to Florida

If you’re new to the state and you want to transfer your current license to Florida, you have to follow a similar process. There’s a chance that you might be able to skip the practical driving test if you’ve been licensed for several years.

Make sure you provide your application and submit the following:

• Identification
• Proof of date of birth
• Proof of residence
• Proof of social security number

Additional Coverages and Expanded Car Insurance Options

If you get minimal coverage, you’ll be in compliance with the law. That’s all you need to do to avoid penalties assessed by the motor vehicle department and the by the courts. While minimum coverage can save you from being fined, it’s not always enough.

While people only have a limited right to sue you after being injured in an accident, there are still circumstances when they can, in fact, create a lawsuit against another driver.

If you have minimum coverage, your insurer doesn’t have to defend you in court. You should also consider buying damage coverage for your vehicle. Here are some options you might want to add to your personal policy:

• Comprehensive – Pays for damage to your vehicle while it’s parked
• Collision – Pays for damage to your vehicle while it’s being driven
• Bodily Injury Liability – Pays for medical bills incurred by others if you’re at fault in an accident in another state
• GAP – Pays for the difference between the loan balance and the car’s value after it’s totaled
• Rental car – Pays for a rental car while the car is being repaired

Shopping for an Insurance Policy in Florida

It’s important to take the time to shop for the right type of Florida car insurance policy.

Getting the best rate does matter but you should focus first on buying adequate coverage. If you don’t buy the right amount of coverage, you’re leaving yourself vulnerable to loss. Here are things to consider:

– Basic Insurance vs. Comprehensive Coverage

If you buy basic insurance, you’ll only have a limited amount of coverage to pay for your medical bills and damage to other property.

You can increase the $10,000 limit, which will offer you more protection but not any protection for your vehicle. If you need protection for your car or it’s financed, you need a comprehensive policy with physical damage coverage.

– Review Several Quotes Often

You may have found a decent policy in a rush, but having insurance doesn’t mean that you don’t need to shop around in the future.

It’s important that you shop the marketplace in Florida at least once every six months. When you’re getting quotes, you should compare a minimum of four policies from different carriers.

Shopping for an Insurance Company in Florida

Shopping for an insurance company is just as important as shopping for the right plan. Coverage that you buy is only as good as the carrier that’s providing it. Doing research to avoid the providers with bad reputations is pertinent.

Here are some tips for finding reputable insurers:

– Check Each Company’s Financial Rating

A company that’s financially stable is better able to pay for claims quickly. Fortunately for all consumers, there are consumer rating agencies that grade companies based on their financial statement information.

A good grade means that the carrier is creditworthy and financially strong.

Here are some of the agencies that you can trust to give you financial information and customer satisfaction information:

• A.M. Best
• Fitch Ratings
• Moody’s Investor Services
• Standard & Poor’s
• J.D. Power & Associates
• Consumer Reports

– Do you need an insurance agent?

In the past, having an insurance agent was the best way to get service. Now that consumers can call toll-free numbers, download apps, or visit websites, there’s not as much of a need for an agent. If you prefer personalized service, having an agent can still benefit you.

Get The Best Discounts

There are plenty of ways to save money on your insurance in Florida. One way would be to buy basic insurance, but the better way is to look for good auto insurance discounts. Some of the best discounts available include:

• Annual mileage
• Vehicle usage
• Pay in full
• Customer loyalty
• EFT payment
• Educational attainment
• Multi-car
• Multi-line

What Car Insurance Companies Look For

Your rates are influenced by risk. When you’re statistically more likely to file a claim in Florida, you pay higher premiums. There are a lot of different factors the insurer will look at to place you into a category. Some factors that could affect risk include:

• Location
• Car make and model
• Driving history
• Age and gender
• Driving experience
• Occupation

The ideal driver is called a preferred risk. That means that they are experienced drivers who are free of accidents and tickets and who have good credit.

While not all companies want to cover the ideal driver, a majority do because the rate of claims filed is much lower in this market segment.

If you’re ready to find the perfect Florida car insurance policy, it’s time to shop the market. Now that you know about the insurance regulations and the optional expanded coverage that you can select, it’s easy to go online and get instant rates quotes.

Enter your zip code below to discover what you would pay for coverage in Florida today!