Insurance in Florida: A Guide to Auto & Home Coverage
Why You Can Trust EverQuote
EverQuote powers millions of shopper requests every month, teaming up with industry-leading insurance specialists to address real-world challenges faced by people every day. We partner with the largest insurance providers in the nation, and our content is carefully crafted by experts and reviewed by licensed insurance agents for accuracy and relevance.
Understanding insurance in Florida is essential in securing your assets, health, and overall well-being. The Sunshine State has diverse insurance options to protect residents’ homes, vehicles, businesses, personal health, and family finances. Below, we’ll help you fully grasp insurance in Florida so you can make informed decisions to protect yourself and your family.
Types of Insurance Coverage Available in Florida
Florida has a wide range of insurance coverage available for its residents. Common insurance in FL includes:
- Automobile insurance
- Home insurance
Let’s explore each type of insurance in more depth and what coverage looks like in Florida.
Auto Insurance in Florida
Florida insurance laws require all vehicles registered to drive on its roads to have auto insurance. As a no-fault state, Florida’s auto insurance laws require vehicle owners to carry at least two types of coverage:
- Personal injury protection (PIP) coverage: This auto insurance helps pay any medical expenses you incur from an accident, regardless of who the at-fault driver was. You must carry at least $10,000 in PIP coverage.
- Property damage liability (PDL): This auto insurance helps pay for damages you or someone you allowed to drive your vehicle caused to another person’s property. You must carry at least $10,000 in PDL.
By having these minimum coverages, you protect yourself from potential lawsuits and protect others in the event you cause an accident that requires you to pay out. If you fail to maintain at least state minimum car insurance coverage, the state can suspend your license and car registration for up to three years. You'll also need to pay up to a $500 reinstatement fee once the state lifts the suspension. Making matters worse, Florida has no provisions for a temporary hardship driver's license if yours is suspended due to an insurance violation.
A range of factors can impact auto insurance rates in Florida, including your driving history, age, claim history, vehicle year, make and model, and location.
You’re also welcome to add various optional Florida car insurance coverage, such as:
- Collision coverage: This covers the damages to your vehicle when it collides with an object or another car, regardless of who caused the accident.
- Comprehensive coverage: This covers damage to your vehicle caused by something other than a collision, such as vandalism, theft, flooding, and fire.
- Uninsured motorist coverage: This protects you if the at-fault driver lacks sufficient auto insurance to pay for damages or if you’re the victim of a hit-and-run situation.
These coverages are optional but are great to have to ensure you're covered in all cases. If your vehicle is leased or financed, the lender may require some or all of these optional coverages to protect its asset while you're still paying on the loan. Failure to maintain this minimum may result in the lender placing its own coverage on the vehicle and adding the premium to your monthly car payment.
Home Insurance in Florida
Home insurance is critical in Florida because of the state’s hurricane and flood risk. A standard Florida homeowners insurance policy covers damages from fire, theft, and certain natural disasters. You can consider additional coverage options, such as sinkhole or flood insurance, to protect your investment better.
Because Florida is so susceptible to hurricanes, some insurers now have separate deductibles for hurricane damage. The deductible varies by home value and policy, so always check this and make sure it’s an amount you’re comfortable with.
Average Cost of Insurance in Florida
Insurance rates can vary significantly based on various factors. However, we can get state average annual premiums for certain insurance coverage to set expectations.
- Average auto insurance premiums: $1,605 annually for minimum coverage and $3,795 annually for full coverage
- Average homeowners insurance premiums: $8,770 annually
Factors Affecting Insurance Rates in Florida
Various factors play a role in Florida's insurance rates. For example, hurricanes, which bring destructive wind forces and the potential for flooding, can increase home, business, and auto insurance premiums. Also, Florida's proximity to the sea level compounds the flood risk.
Florida has also seen consistent population increases of 1.11% in 2021, 1.9% in 2022, and 1.64% in 2023, resulting in more crowding. This can lead to additional issues with theft, vandalism, and car accidents, impacting home, business, and auto insurance rates.
Finally, Florida's high percentage of retirees can impact the average premiums for health and life insurance. Plus, with more elderly drivers on the road, the risk of auto accidents could impact auto insurance rates.
Useful Florida Insurance Resources
Finding additional information on Florida’s insurance rules, regulations, and news is essential in helping you choose the right policies. These are great resources:
If you’re looking for cheap car insurance in Florida, EverQuote can help. We allow you to compare auto insurance premiums across multiple car insurance companies in Florida completely free to find the best fit.
FAQs
Wading through insurance in FL often leads to an array of questions. Let’s review some frequently asked questions to clear up any lingering issues.