Florida Auto Insurance FAQ’s

1.  WHAT IS PIP INSURANCE?

PIP – Personal Injury Protection pays 80% of medical expenses and 60% of lost wages up to $10,000, incurred as a result of an auto accident. PIP benefits are paid by your insurance company regardless fault. PIP Insurance is also called Florida No Fault Insurance. PIP applies to you and your family members. It also applies to any other person occupying your vehicle or struck, as a pedestrian, by your vehicle. The state of Florida requires every vehicle with four or more wheels maintain Florida Auto Insurance coverage.

2.  WHAT IS PIP REFORM?

The new PIP legislation, passed during the 2012 legislative session requires anyone in an automobile accident to obtain treatment within fourteen days. The $10,000 PIP medical benefits are available only if a physician, osteopathic physician, dentist, or a supervised physician’s assistant or advanced registered nurse practitioner determines that the insured has an “emergency medical condition.” People with serious injuries are eligible for the higher limit, while those with less severe injuries will receive only up to $2,500.

3.  WHAT IS FLORIDA MANDATED MINIMUM?

The Florida Motor Vehicle No-Fault Law requires all owner/registrants of a motor vehicle with four wheels or more to carry a minimum of $10,000 of Personal Injury Protection (PIP) and $10,000 of property damage liability if you own a motor vehicle in Florida. Florida law requires you to maintain PIP/PDL insurance continuously throughout the licensing and registration period.

4.  WHAT IS THE DIFFERENCE BETWEEN UNINSURED & UNDERINSURED?

Uninsured motorist coverage protects you if you’re in an accident with an at-fault driver who doesn’t carry liability insurance. Underinsured motorist coverage steps in when you’re in an accident with an at-fault driver whose liability limits are too low to cover the damage or medical expenses. The at-fault driver’s insurance will typically pay for all damages up to their policy limits, and then your underinsured motorist coverage will cover the excess amount up to the limits you select.

5.  DO I HAVE WINDSHIELD GLASS COVERAGE?

If you live in Florida, you live in what’s called a “Zero Deductible State.” That means that your insurance company is required by law to allow you to purchase a windshield replacement using your insurance with no deductible —as long as you have comprehensive insurance on your vehicle.

6.  WILL MY RATES GO UP IF I FILE A CLAIM?

The answer is maybe. It depends on the insurance company. One accident may not cause your rates to increase, however if you have multiple accidents your insurer may increase your premiums or not renew your policy.  An accident forgiveness program typically allows good drivers to have one accident without suffering a rate increase. Some insurance companies allow multiple accidents. Check with your insurance company or agent.

7.  WHAT IS THE MEANING OF STACKED & UNSTACKED INSURANCE?

Stacked insurance essentially increases your uninsured motorist (UM) and underinsured motorist (UIM) coverage limits in relation to how many cars you insure.  By stacking insurance, you can take advantage of increased underinsured and uninsured motorist bodily injury coverage for all cars under your policy. Stacked coverage can only apply if there is more than one car covered. Unstacked insurance coverage treats each vehicle’s coverage separately, no matter how many cars you insure. This will save you money in premiums, as stacking carries a heavier fee.

8.  WHAT SHOULD MY COVERAGES BE?

If you’re like many people, you might be in an economic pinch these days. Your inclination might be to get the minimum insurance coverage required by law in your state. The trouble with minimum coverage is that it might not fully protect you or your assets if you’re in an accident. It’s a better idea to carry more than the minimum coverage unless you are driving an older car with little value and have no assets to protect

9.  IF I LEASE WHAT ARE TYPICAL LEASE COVERAGES?

Most car lease companies require you to maintain auto insurance coverage as follows (it’s specified right in the small print of your lease contract):

  • Liability coverage: $100,000 per person / $300,000 per occurrence
  • Property liability coverage: $50,000
  • Comprehensive and collision for actual value with no more than $500 deductible

10.  I LIVE OUTSIDE FLORIDA 6 MONTHS OUT OF THE YEAR AND KEEP MY VEHICLE IN STORAGE AND NOT USED. DO I HAVE TO KEEP IT INSURED?

Yes, according to the Florida Department of Highway Safety and Motor Vehicles.  Any vehicle holding a valid Florida license plate and registration must be covered by a Florida insurance policy throughout the entire registration period. You can however suspend certain coverage’s on your vehicle while you are away.

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