How Florida Auto insurance works

Florida is 'tort state', which means that it makes sure that the person who has been wronged in any way gets compensated adequately. It therefore makes it legally compulsory for automobile owners to have the means to pay up should he be involved in an accident where someone is injured or there is damage to the other party's car or property.

As such, the Florida auto insurance regulators have laid down rules pertaining to minimum liability coverage which an automobile owner has to adhere to. This rule is applicable to anybody who has been the owner of a car in Florida for more than 90 days in the last one year, resides in Florida, is employed in there or has children in school in Florida. The law mandates that the car owner has to have a Property damage cover of at least $10,000. Apart from this he has to have a personal injury protection cover of no less than $10,000. All other covers are optional. However it would be wise to have medical payment, collision and comprehensive cover added to the policy.

Even if the vehicle has moved from some other state and has been insured in that state, the same rule will follow. The policy holder will have to hire a Florida agent to transfer the insurance from other state to Florida when the vehicle is registered in Florida. Failure to do so may lead to the persons driving privilege being suspended by the Department of Highway Safety and Motor Vehicles. The department can also suspend vehicle's tag and registration till proof of registration in Florida is submitted. The ordeal does not end here. The defaulter may have to pay a license reinstatement fee between $150 and $500 along with the proof.

In Florida, the driver's age, his marital status and his past driving record can influence the amount that he has to shell as premium. For instance, a flawless driving record devoid of any tickets can knock off some precious dollars from the insurance premium. If the driver's age is above 50, again this goes in his favor of being a safe driver and hence his premium amount comes down.

Florida auto insurance also gives the car owner the option of lowering his premium amount by increasing his deductible and keeping it in the range of $500 to $1,000. But remember that this puts the risk of safe driving on the car owners' shoulders.

Auto insurance companies in Florida recommend that if your car's book value is less than $3,000 it would be wise to drop collision and comprehensive coverage altogether as it is an expensive part of your car insurance. But again there is the risk of you losing everything or having to pay for the damages completely out of your pocket if the car is stolen or gets damaged in an accident. One has to weigh the pros and cons of this coverage on a cheap car. In an expensive car collision and comprehensive coverage is absolutely essential.

Car insurance discounts vary from one state to another. Remember to ask about any available Florida car insurance discounts.

By Jill Quinn


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