Orlando Auto Insurance
If you live in Orlando or you are in the process of relocating to Orlando from another state, it is important to know the auto insurance requirements in Florida so that you can comply with state laws.
All residents of Orlando who are licensed to operate a motor vehicle and own a vehicle registered in Florida must carry continuous coverage to avoid hefty fines and strict penalties.
While insurance is required in Orlando, you are not required to purchase your coverage from a specific provider.
There are several different licensed insurance companies in the state of Florida who offer coverage to residents of Orlando. Consumers who want to find the most competitive auto insurance rates should take the time to shop around so that they can buy their coverage from a reputable company offering the most competitive rates.
Read on, and learn more about the insurance industry in Orlando so that you can be an informed consumer. And be sure to always compare rates using the FREE search tool above! Simply enter your ZIP code to start.
What Are the Minimum Auto Insurance Requirements in Orlando?
Auto insurance requirements are applicable to all residents in the state so if you live in Orlando, you will need to carry the minimum auto requirements in Florida to satisfy the financial responsibility laws in the state.
Because Florida is a no-fault state, where insurers will pay for the medical bills and rehabilitation expenses of their own policyholders, you must carry Personal Injury Protection in addition to liability cover to cover a personal automobile. Here is a breakdown of the coverage requirements and limits:
Personal Injury Protection
Personal Injury Protection, also referred to No Fault coverage, will cover the named insured, children and household members for their injuries sustained in covered accidents. Based on the No Fault Law, all insurers must offer at least basic no fault cover. This includes the following benefits:
- $10,000 in Personal Injury Protection (PIP) to cover medical expenses
- $10,000 in Property Damage Liability
Bodily Injury Liability
While you are not required to purchase Bodily Injury coverage automatically when you register a vehicle, your driving history can affect whether or not you need to add this coverage to your policy.
In Orlando, drivers who have been involved in at-fault accidents and convicted of serious offenses may be ordered to carry Bodily Injury Liability of at least $10,000 per person and $20,000 per accident.
You also can voluntarily purchase this coverage (up to $100,000 per person and $300,000 per accident) if you would like additional protection for your assets if you are sued in a civil court for damages that you cause.
What Happens If You Do Not Have Insurance in Orlando?
If you are caught driving uninsured, you can face severe punishments that will affect your criminal record and cost you money. Driving without insurance in Orlando is charged under Florida Statute 322.03. It is a misdemeanor that is punishable with a $500 fine or up to 6 months in jail for your first offense.
The Department of Motor Vehicles also has the right to take action and suspend both your vehicle registration and your driver license if you are convicted of driving with no insurance. You will be required to pay additional reinstatement fees, in addition to your fine, if this happens before you can legally operate your vehicle.
If you would like to avoid these penalties, it is imperative that you carry auto insurance at all times.
Be aware of the fact that you do not have to get into a crash or be pulled over to be penalized for no insurance. All auto insurance coverage provided by licensed insurers in Orlando is electronically reported to the Department of Highway Safety and Motor Vehicles.
If your policy goes inactive and this is reported to the DHSMV, you will be penalized. It costs much more to pay fines and reinstatement fees than it does to pay your monthly premiums.
Are Additional Forms of Coverage Available in Orlando?
When you buy Florida coverage from a company licensed to do business with residents in Orlando, you will have the option to purchase additional cover in addition to the basic coverage requirements.
Not only can you raise the PIP limits and liability limits, you can also buy coverage that will pay when you are hit by a party with no insurance or when your vehicle is damaged. Here is a breakdown of the optional forms of cover available to you in Orlando:
Physical Damage Coverage
Basic insurance will not pay for repairs to your vehicle if it is damaged due to a covered loss. If your vehicle is financed or valued high enough to justify the expense for full coverage, you will need to carry comprehensive and collision. Comprehensive pays for damage caused by fire, theft, vandalism, wind and losses other than collision.
Collision will pay for damaged that is sustained in a moving accident. The company will pay up to the fair market value of your vehicle based on values in Orlando for repairs or replacement minus your deductible.
Uninsured Motorist
While it is not required in Florida, it is wise to purchase uninsured motorist cover if you live in a tourist area like Orlando where the incidence of uninsured drivers is high. Based on reports published by the Insurance Research Council, Florida has the second highest rate of uninsured drivers with 23.8 percent of residents failing to carry insurance.
By purchasing this optional protection, you have peace of mind in knowing that your are covered when someone causes injury or damage and does not comply with the insurance laws.
Medical Payments
Not all of your passengers are covered under no-fault coverage. If you have friends in the vehicle who do not live in the household and they are injured, medical payments will offer a limit of coverage for their medical bills.
Rental Reimbursement Coverage
If you have a collision claim and you need a replacement vehicle as transportation, rental reimbursement will cover a daily rental charge to rent a vehicle similar to yours from an agency in Orlando. If you have an extra vehicle, this coverage is not necessary.
Towing and Labor
If you do not have roadside assistance from another provider, some insurers offer towing and labor coverage for an added premium per vehicle. It will cover towing when you vehicle is disabled, lockout assistance, gas deliver and more.
How Are Your Rates Determined in Orlando?
All insurance companies that sell car insurance in Orlando are required to file their rates with the Florida Office of Insurance Regulation. Because this is a regulated industry, the Office will have their Property and Casualty Product Review Unit review contracts and rate filings to ensure that these filings are in compliance with standards and not discriminatory in any way.
As a consumer protection entity, the unit acts to reject rates that are inadequate, discriminatory or excessive. Because this is still a competitive market, there is room for insurers to compete by charging rates that appeal to specific niche markets.
This is why it is so important to compare the rates through several providers that do business in Orlando so that you can find a company who is priced to compete with drivers in your group classification. Here are some of the factors that can increase or decrease your premiums, aside from your driving record, when buying Orlando coverage:
Age, Gender and Driving Experience
Insurance is based on risk, and young drivers tend to be more of a risk behind the wheel. Males have higher incidence of accidents as well.
Combined, young males tend to be the riskiest drivers on the roadways. While other factors can affect base rates, the base rates for youthful operators tend to be higher than average premiums in Orlando.
Vehicle
If you have a sports car, an SUV, or a vehicle with a poor safety record, you will pay higher rates than vehicles that bode well in accidents.
Usage and Mileage
If you are retired and living in Orlando, you will be classified as a pleasure driver. Commuters and business users pay higher rates than individuals who drive strictly for pleasure. Low mileage drivers also pay lower rates because these is less exposure to accidents and claims present.
Zip Code for Parking
There are state rate filings, but there are also rates specific to zip code. When you live in Orlando, where there is a high resident population and a high rate of claims, you will pay higher territory rates than someone who lives in a less populated area with less vandalism and theft crimes reported. This is very important to keep in mind.
If you would like to save money on your car insurance without spending a significant amount of time pricing insurance, use a rate comparison tool online and enter your information. Retrieve Orlando insurance quotes and save today using the FREE comparison tool below!