The Florida Financial Responsibility Law, Explained

The Florida financial responsibility law requires anyone who drives a vehicle to carry both personal injury protection and property damage liability.
Written by Bonnie Stinson
Edited by R.E. Fulton
financial responsibility law requires Florida residents who own or drive a motor vehicle more than 90 days to carry two types of
car insurance
: personal injury protection (PIP) and property damage liability.
  • Florida’s financial responsibility law requires all drivers to carry minimum amounts of auto insurance coverage. 
  • The two types of insurance required in Florida are personal injury protection and property damage liability. 

What is the Florida financial responsibility law?

The Florida
financial responsibility law
is part of the Florida Statutes, and it requires Florida drivers to carry a minimum amount of car insurance coverage:
  • $10,000 in personal injury protection (PIP) coverage
  • $10,000 in property damage liability protection
In a car accident, there are two major risks for damages: damage to a person’s property and damage to other motorists. The Florida financial responsibility law aims to ensure all drivers have minimum insurance protections against these two risks.
Note that PIP is available in
no-fault states
like Florida, whereas
bodily injury liability
coverage is required in
at-fault states
as well.
Florida has high accident rates: Compared to the rest of the United States, the state of Florida experiences higher than average accident rates. In 2022, for example, just under 400,000 crashes were reported in the state. About 41% of those resulted in bodily injury, and 3,281 of those were fatal, according to the
Florida Department of Highway Safety and Motor Vehicles
For drivers involved in those accidents, having both personal injury protection and property damage liability softened the financial blow.

Exceptions to Florida’s insurance requirements

The only way to meet Florida’s responsibility requirements without buying auto insurance is to qualify as a self-insurer
In order to be self-insured, you must have a net worth of at least $40,000. If you own multiple vehicles, you must have a net worth of $40,000 for the first vehicle and at least $20,000 for every additional vehicle. You may need to submit annual reports to the FLHSMV to prove that you still have enough money to meet your financial responsibility requirements. 
Members of the Armed Forces may also qualify for an exemption from the proof of financial responsibility law in Florida. 

What is personal injury protection?

Personal injury protection (PIP)
is required for Florida drivers in possession of a vehicle for over 90 days with a minimum limit of $10,000. For vehicles registered as taxis, the required limits are $125,000 per person and $250,000 per occurrence.
PIP covers 80% of costs for any significant injuries totaling more than $2,500 in damages, regardless of which driver was at fault. The types of damages covered include:
  • Medical expenses
  • Disability
  • Survivor’s loss
  • Funeral costs
  • Lost income
Personal injury protection pays out quickly without involving outside insurance companies, which is a great benefit to individuals needing to quickly pay for medical bills and related expenses after a serious accident.

What is property damage liability protection?

The minimum worth of
property damage liability
under the Florida financial responsibility law is $10,000, which is equal to that of PIP. For taxis, the minimum car insurance requirement is $50,000.
As with PIP, property damage liability coverage also applies regardless of who is at fault. It helps pay for the following types of damages to material property:
  • Vehicle damage
  • Damage to other structures, such as houses or sheds
  • Damage to other stationary objects, such as telephone poles or street signs
  • Damage to lawns or sidewalks
It is possible to carry a higher limit on a property damage liability insurance policy, which comes with a higher premium.

What are the consequences for not following Florida's financial responsibility law?

Paying out of pocket: If an accident has occurred, the driver could be responsible for paying all damages out of pocket. This can spell financial disaster for the person at fault, incurring risk of losing personal assets or even having to file bankruptcy.
Driving privileges revoked: If no accident occurred but noncompliance with the Florida no-fault financial responsibility law was discovered, the driver’s license plate, tags, and vehicle registration can be
for up to three years. Once the period of suspension is over, the driver must pay a $15 reinstatement fee and provide proof of insurance for both PIP and property damage liability coverage at the minimum levels.
Higher premiums: Your car insurance rates may skyrocket after a license suspension. You’ll have to
shop for car insurance online
and compare rates to find an affordable premium after your license is reinstated.
"I had limited time to find a new insurance plan in Florida, so I tried
. My experience was personalized and professional, and they found me a plan that fits my portfolio. You should give them a try.” —Valencia T. 
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