Florida auto insurance — PIP, PDL and no-fault rules explained for Canadians

Florida's no-fault system

Florida operates under a no-fault auto insurance system (Florida Statute §627.736). This means that after an accident, each party's own insurance pays for their own medical bills, up to the PIP limit — regardless of who caused the accident.

The intent: reduce minor injury lawsuits. The result: minimum PIP of $10,000 is almost always insufficient for real accidents, and the system has historically suffered from fraud.

PIP — Personal Injury Protection

• Minimum required: $10,000.
• What it covers: 80% of reasonable medical expenses + 60% of lost wages, up to the $10,000 limit.
• $2,500 sublimit for non-emergency care: if the injury is not a "medical emergency," PIP only covers $2,500 of the $10,000 limit.
• Who is covered: you, household members, and passengers in your vehicle, regardless of fault.
• Deductible: you can choose a $0–$1,000 PIP deductible (higher deductible = lower premium).
• $10,000 is very little: a single emergency room visit in Florida easily exceeds $5,000–$10,000. Most financial advisors recommend higher PIP limits or supplementary health insurance.

PDL — Property Damage Liability

• Minimum required: $10,000.
• What it covers: damage you cause to someone else's vehicle or property (fence, building, etc.).
• $10,000 is also very low: a minor fender-bender with a new car can easily exceed $10,000. Consider $50,000–$100,000.

Bodily Injury liability — not mandatory in Florida

Florida is one of the few US states that does NOT require Bodily Injury (BI) liability — which pays for injuries you cause to others. This is why Florida has one of the highest rates of uninsured/minimally insured drivers in the US.

Strongly recommended to add BI: $100,000 per person / $300,000 per accident is a common minimum recommendation. If you seriously injure someone without BI coverage, you are personally liable beyond your PDL limit.

Uninsured/Underinsured Motorist (UM/UIM) coverage

With ~26% of Florida drivers uninsured or underinsured, UM/UIM coverage is essential. It covers your injuries and damages caused by a driver who has no insurance or inadequate coverage.

• Florida insurers must offer UM/UIM coverage equal to your BI limits.
• You may reject UM/UIM in writing — but this is generally not advisable.

Snowbirds with Canadian-plated vehicles

If you are a Canadian on B-2 status driving your Canadian-plated vehicle in Florida:

• Your Canadian auto insurance extends to the US for temporary visits (typically 6 months). This coverage usually includes liability that meets or exceeds Florida's minimums.
• Verify specifically with your insurer that: (a) coverage applies in Florida, (b) minimum limits meet $10,000 PIP + $10,000 PDL, and (c) the coverage period matches your stay.
• Request a written confirmation or endorsement letter from your Canadian insurer before departure.
• You do NOT need to purchase a separate Florida policy for your Canadian-plated car during a tourist visit.

For Florida-registered vehicles

If you are a Florida resident registering a vehicle, you must purchase Florida insurance. Recommended coverage levels:

• PIP: $10,000 (required minimum; consider higher if your health insurance has gaps).
• PDL: $50,000–$100,000.
• BI: $100,000/$300,000.
• UM/UIM: at least equal to your BI limits.
• Collision and Comprehensive: if the vehicle has significant value.

Average Florida auto insurance: $1,800–$3,600/year for full coverage, depending on county (Miami-Dade is among the most expensive in the US), driving history, and vehicle.