Florida Auto Insurance Laws
Auto Insurance Laws and Trends in FL
Florida is one of the states that have implemented the no-fault system of insurance. While bodily injury and property damage insurance is required, motorists are not mandated to purchase personal injury protection, collision, comprehensive, or under/uninsured motorist coverage. Under the no-fault insurance system, both parties are responsible for injuries, regardless of who caused the accident. The responsible party will have to pay property damage expenses.
Auto insurance policy holders are also not required to list all licensed drivers in the household. However, if an unlisted driver is involved in a motor vehicle accident, the insurance company has the right to deny a claim. Therefore, it is in every policy holder's best interest to list all drivers who have access to their vehicles.
If residents fail to show proof of liability insurance, they face suspension of their driving privileges up to a period of 3 years. In order to have these privileges re-instated, a fee of $150 to $1500 and proof of insurance must be provided.
Auto insurance premiums for Florida
Florida is the 5th most expensive state for auto insurance, averaging approximately $1,069 per year. This rate is relatively steady, decreasing only 0.5% from the previous year. The reason for such high premiums is the large population and the large number of claims – especially windstorm and hail claims.
Trends for auto insurance in Florida
There is a large number of seniors and retirees who decide to make Florida their place of residence. Following are the 2008 crash statistics involving seniors (ages 65 +):
Total Crashes |
243,342 |
Total Fatalities |
2947 |
Crashes Involving Seniors |
28,505 |
Fatalities Involving Seniors |
435 |
These numbers are fairly low, considering that the number of licensed drivers over the age of 65 totalled 2,821,842.