The Four Things That Make Florida Auto Insurance Expensive
There are differences in Florida auto insurance law that a person that moves to Florida or is a resident of Florida needs to know to be compliant with the law and therefore covered by their insurance. These four differences usually mean that your auto insurance will cost more in Florida.
1) You must buy Florida Auto Insurance from a Florida Insurance Company
The auto insurance policy that you have is not necessarily valid in Florida even if your insurer is a nationally recognized company. You are required by law to purchase Florida auto insurance from a company that is licensed in the state of Florida.
Most major auto insurance companies are licensed to sell insurance in Florida but smaller companies or an insurance company that only does business in one state is not.
2) You must meet minimum coverage requirements
The minimum coverage requirements for Florida auto insurance are $10,000 each for property damage and personal injury. The limits are higher than many states and the higher limits will cost you more in premiums.
The high limits are not all bad. Higher limits are often a protection against litigation if a personal injury or damage to property that was caused by you exceeds $10,000. You must understand that any payments of claims from auto insurance companies come second to payments by health insurance or property insurance.
The minimum insurance for any vehicle used in business is $250,000 each for property damage and personal injury. Again, the higher levels of coverage protect you from additional costs if your vehicle is involved in an accident.
3) You must have Florida auto insurance
The law requires that you have auto insurance in Florida. You can lose your license, lose your tag, and pay fines for getting your license back if you do not have auto insurance.
4) How does the state know that you have auto insurance?
Florida maintains a database that is tied to all licensed Florida auto insurance companies. You get a card from the company that insures your car that states that you have insurance every time you renew your insurance.
Auto insurance companies in Florida are required to provide the state with your auto insurance information as part of their licensing to do business in Florida. The idea is that you are not as important to an insurer as the company or business is.
Florida requires annual vehicle inspections. The inspectors ask for proof of insurance and notify the state if you cannot produce proof of insurance.
You pay taxes for the inspection process. This additional cost is not directly associated with Florida auto insurance but your rates will increase if your vehicle does not meet all of the safety inspection standards. You have to pay for repairs as well.