Insurance Center

Auto insurance is a must in every state in the U.S.; what differs between states is the minimum requirements. Florida has two main insurance laws: the Financial Responsibility Law and the No-Fault Law.

Financial Responsibility Law

All Florida vehicle owners must prove that they have coverage to pay for any injuries or vehicle damage they cause in a vehicle crash. The Financial Responsibility Law covers damage to other people or vehicles, not your own. The law states that you must have the minimum policies in these circumstances:

• A crash that you caused, involving injuries

• Driver license suspension for too many points

• DUI citation and subsequent license revocation

• License revocation for habitual traffic offenders

The Minimum Requirements

If one of the above situations applies to you, you will be required to show proof of the following minimum coverage:

• $10,000 Bodily Injury Liability (BIL) for one person

• $20,000 BIL to two or more people

• $10,000 Property Damage Liability (PDL)

If you don't have the minimum coverage when required, you could lose your license and tags/registration for up to three years. You'll receive a notice in the mail with a date of suspension. If you didn't already have coverage, you can purchase it before the suspension date. Your insurance company should then certify it to the DHSMV by filing an SR-22 form. If you wait until after your license is suspended, there will be a $150 reinstatement fee.

No-Fault Law

You're required to have insurance coverage on any motor vehicle that has been in the state for 90 days out of the year (the 90 days don't have to be consecutive). You won't be able to register your car or obtain a license plate without proof of insurance from a company licensed in Florida.

As long as you have your insurance, the policy provider will notify the Department of Motor Vehicles (DMV) of all action on your account, including renewals, failures to renew, and cancellations either by you or the policy provider.

If your policy is cancelled, you'll be notified by the DMV to provide proof of another policy. If you fail to provide that within the time allotted, your license will be suspended for up to three years or until you show proof of coverage, whichever is first.

The No-Fault Law is for coverage relating to your own vehicle and yourself, if you sustain injuries in an accident. The minimum requirements are:

• $10,000 Personal Injury Protection (PIP)

• $10,000 Property Damage Liability (PDL)

Failure to Carry No-Fault Insurance―Don't Do It

The state is serious about drivers carrying the minimum required amounts for accidents and crashes, and failure to comply can result in big trouble. Besides the three-year suspension, you'll have to pay $150 to reinstate your license at the end of the suspension period. For a second lapse in three years, you'll pay $250, and for a third you'll pay a whopping $500.

Losing your license for failure to have the proper insurance can have lasting negative effects. You won't even be able to apply for a hardship license for work purposes only―Florida doesn't have one.

Have more questions about Florida insurance laws? Contact DMV Customer Service at (850) 922-9000 or check out this insurance-related FAQ for answers related to your specific situation.