Florida Auto Insurance Laws and Regulations

The Sunshine state requires its motorists to have two types of coverage while the vehicle has a valid tag or registration. The first of which is $10,000 for personal injury protection (PIP). This covers the insured in the event that they suffer bodily injury as a result of a traffic accident. Secondly is $10,000 for property damage liability. This covers the damages done to another party’s property caused by the policyholder. These limits are the minimum but are relatively low compared to the costs of medical care and vehicle repair or replacement.

For instance, if one were to be hospitalized after an accident they can easily use up the $10,000 limit on their policy and would be help accountable for the remaining balance. This can also apply if they cause a collision and were to strike and damage or "total" a luxury or high end vehicle. It may be wise to consider raising the limits in order to protect from financial hardship later on down the road. The extra couple of bucks a month will prove to be worth it in the event of one of these unfortunate events.

There is also a coverage which should be considered called Bodily Injury Liability (BIL). This compensates for serious and permanent injuries or deaths to others when be held liable for an automobile accident. The insurer will pay for injuries up to the policy limit chosen. In the event that you are sued, this can also provide legal representation. This covers the injuries caused by the policyholder as well as relatives which reside with them even if they were driving a borrowed vehicle. If you lent out your automobile, it may even cover the person who was lent the vehicle. This is a very beneficial type of coverage to have.

The above mentioned policies do not cover the vehicles of the insured. For this Florida auto insurance companies offer what is called comprehensive and collision. This will compensate the policyholder for damage sustained to their automobile minus the amount of the deductible chosen at the time of the policy is purchased. This should be considered if financing a vehicle and for the most part the financial institute will make it part of the loan condition that this is in effect at all times. It may not be beneficial to choose this for older cars or those with low value because the cost of premium and deductible may be high than the compensation that on will receive if involved in a collision.

The bottom line is that car insurance is the law. Which type of coverage that should be chosen is up to every individual’s unique situation. Before making a purchase be sure to take the time to analyze your particular needs and choose the protection that will best fit your budget as well as your needs.