Whether you just got into a crash or have decided to create an emergency household financial plan, looking into the details of your insurance coverage can be a smart move. Quite a few drivers make the mistake of buying the lowest amount of coverage that they can in the state where they live.
Every state has its own requirements for liability coverage. Some states even have no-fault insurance systems where each driver’s policy covers their own losses. Florida’s insurance is primarily liability coverage, but it does offer some no-fault medical coverage as well. What are the mandatory insurance requirements for drivers with vehicles registered in Florida?
Florida law requires both property damage and injury coverage
There are many types of coverage for motor vehicles, and Florida law mandates two kinds. Specifically, you must have at least $10,000 of Personal Injury Protection (PIP), as well as $10,000 of Property Damage Liability (PDL) coverage. PDL coverage will pay for the damage a driver causes to other people’s property and is fault-based coverage.
That PIP coverage is particularly valuable because it protects you regardless of the circumstances. It is a form of no-fault coverage that applies to the person who holds the policy and the occupants of their vehicle. You can count on the PIP coverage you pay for to cover 80% of your provable medical expenses.
The problem with minimizing insurance coverage on a vehicle
Insurance is an expense you have to cover regardless of what happens on the road. Most people see it as a frustrating expense rather than a form of protection because they have never needed their coverage.
If you cause a car crash, your policy will protect you from the other person suing you and laying claim to your wages or personal property. If you get hurt in a crash, you aren’t dependent on someone else’s coverage for your medical care. You can also purchase extra coverage that will protect you from drivers who don’t carry insurance or situations where insurance won’t cover all of your expenses.
For many drivers, it is a better practice for their financial future overall to carry more than the minimum amount of insurance so that they have fewer liability risks and more medical coverage. Understanding the insurance requirements in Florida will make it easier for people to assert their rights after a serious car crash.