Insurance

Florida Car Lease Insurance Requirements: What You Need to Know

Florida Car Lease Insurance Requirements – If you are planning to lease a car in Florida, you may be wondering what kind of insurance you need to have. Florida has some of the lowest minimum auto insurance requirements in the country, but they may not be enough to satisfy your lease agreement.

In this article, we will explain what Florida car lease insurance requirements are, why they are different from the state minimums, and how to find the best coverage for your leased vehicle.

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Florida State Minimum Auto Insurance Requirements

Florida is a no-fault state, which means that if you are involved in a car accident, your own insurance company will pay for your medical expenses and lost wages, regardless of who was at fault. This is why Florida requires every driver to have at least $10,000 of personal injury protection (PIP) insurance. PIP covers you, your passengers, and your family members who live with you.

In addition to PIP, Florida also requires every driver to have at least $10,000 of property damage liability (PDL) insurance. PDL covers the damage you cause to someone else’s property in an accident, such as their car, fence, or building.

These are the only two types of auto insurance that are mandatory in Florida. However, they may not be enough to protect you from the financial consequences of a serious accident. For example, if you injure someone else in an accident and they sue you for their medical bills and pain and suffering, PIP and PDL will not cover those costs. You could be personally liable for thousands or even millions of dollars.

That is why Florida also has a financial responsibility law, which requires drivers who are involved in certain situations to have bodily injury liability (BIL) insurance. BIL covers the medical expenses and legal fees of the people you injure in an accident. The situations that trigger the financial responsibility law include:

  • Being convicted of driving under the influence (DUI)
  • Being involved in an accident that causes bodily injury or death
  • Having your license suspended or revoked for any reason
  • Being a taxi or limousine driver

If you fall into any of these categories, you must have at least $10,000 of BIL per person and $20,000 of BIL per accident. If you fail to do so, you could face penalties such as fines, license suspension, vehicle impoundment, and even jail time.

Florida Car Lease Insurance Requirements

If you lease a car in Florida, you will have to meet the state minimum auto insurance requirements of $10,000 of PIP and $10,000 of PDL. However, these may not be enough to satisfy your lease agreement. Most leasing companies will require you to have higher levels of coverage to protect their investment in the vehicle. These may include:

Higher limits of PDL and BIL

Leasing companies may require you to have at least $25,000 of PDL per accident $50,000 of BIL per person and $100,000 of BIL per accident. These limits will ensure that you can cover the damage and injuries you cause in a major accident.

Comprehensive and collision coverage

Leasing companies may also require you to have comprehensive collision coverage, which pays for the repair or replacement of your leased vehicle if it is damaged by something other than a collision, such as fire, theft, vandalism, or natural disasters (comprehensive), or if it is damaged by a collision with another vehicle or object (collision). These coverages usually have a deductible, which is the amount you have to pay out of pocket before the insurance kicks in.

Gap insurance

Gap insurance is another type of coverage that leasing companies may require. Gap insurance covers the difference between what you owe on your lease and what your car is worth if it is totaled or stolen. For example, if you owe $20,000 on your lease but your car is only worth $15,000 at the time of a total loss, gap insurance will pay the remaining $5,000. This way, you will not be stuck paying for a car that you no longer have.

The exact amount and type of coverage that leasing companies require may vary depending on the company and the vehicle. You should always check your lease agreement carefully and ask questions before signing it. You should also shop around for different quotes from different insurers to find the best deal for your leased car.

How to Find the Best Coverage for Your Leased Car

Finding the best coverage for your leased car can be challenging, especially if you are not familiar with auto insurance terms and options. Here are some tips to help you find the best coverage for your leased car:

Compare quotes from different insurers

The easiest way to find the best coverage for your leased car is to compare quotes from different insurers. You can use online tools like NerdWallet or MoneyGeek to compare quotes from multiple insurers in minutes. You can also contact insurers directly or work with an independent agent who can help you find the best coverage for your needs and budget.

Choose the right coverage levels

When comparing quotes, you should make sure that you are choosing the right coverage levels for your leased car. You should always meet the state minimum and lease agreement requirements, but you may also want to consider increasing your limits or adding optional coverages for extra protection.

For example, you may want to add uninsured/underinsured motorist coverage, which pays for your medical expenses and vehicle damage if you are hit by a driver who has no insurance or not enough insurance. You may also want to add rental car reimbursement, which pays for the cost of renting a car while your leased car is being repaired after a covered claim.

Choose the right deductible

Another factor that affects your auto insurance premium is your deductible. A deductible is the amount you have to pay out of pocket before your insurance pays for a claim. The higher your deductible, the lower your premium, and vice versa. However, you should not choose a deductible that is too high that you cannot afford to pay it in case of a claim. You should also check your lease agreement to see if there is a maximum deductible that you can choose.

Look for discounts

One of the best ways to save money on your auto insurance is to look for discounts that you may qualify for. Different insurers offer different discounts, but some of the common ones include:

    • Safe driver discount: If you have a clean driving record with no accidents or violations, you may get a discount on your premium.
    • Good student discount: If you are a student who maintains good grades, you may get a discount on your premium.
    • Multi-policy discount: If you bundle your auto insurance with other types of insurance, such as home or renters insurance, you may get a discount on your premium.
    • Multi-car discount: If you insure more than one car with the same insurer, you may get a discount on your premium.
    • Pay-in-full discount: If you pay your premium in full rather than in monthly installments, you may get a discount on your premium.
    • Auto-pay discount: If you set up automatic payments from your bank account or credit card, you may get a discount on your premium.

You should always ask your insurer about the discounts that they offer and how to qualify for them.

In conclusion, Leasing a car in Florida can be a great option for drivers who want to drive a new car without paying the full price. However, leasing a car also comes with certain insurance requirements that are different from the state minimums. You should always check your lease agreement carefully and compare quotes from different insurers to find the best coverage for your leased car. By doing so, you can enjoy driving your leased car with peace of mind and confidence.

Florida Car Lease Insurance Requirements: Frequently Asked Questions (F&Qs)

Florida Car Lease Insurance Requirements

How much is insurance on a leased car in Florida?

Florida drivers pay an annual average of $3,183 for full coverage and $1,128 for minimum coverage. These rates are significantly higher than the national averages.

However, it’s important to note that these are averages and the actual cost can vary based on factors such as the type of vehicle you drive, your driving record, credit rating, coverage limits, and more.

For a leased car, you might be required to have full coverage insurance which includes both comprehensive and collision insurance. This is often a requirement from the leasing company to protect their investment. Therefore, you might be looking at costs closer to the full coverage average.

Please note that all Florida drivers must maintain a policy that meets at least the state minimum requirements. These minimums include $10,000 in personal injury protection and $10,000 in property damage coverage.

What car insurance is required by law in Florida?

In Florida, drivers are required by law to have two types of auto insurance coverage:

  1. Personal Injury Protection (PIP): This coverage pays for your medical expenses or your passengers’ medical expenses after an accident, regardless of who is at fault. The minimum required limit is $10,000.
  2. Property Damage Liability (PDL): This coverage pays for damage you cause to someone else’s property in an accident. The minimum required limit is also $10,000.

NOTE: While these are the minimum requirements, many drivers choose to carry additional coverage such as bodily injury liability, collision, and comprehensive coverage to further protect themselves financially. For a leased car, the leasing company might require you to have full coverage insurance which includes both comprehensive and collision insurance.

Does Florida require insurance on rental cars?

In Florida, rental car insurance is not required by law. However, it is recommended to protect yourself in case of an accident or theft while renting a car. Rental car insurance can be purchased from the rental car company or your auto insurance provider.

The coverage options for rental cars in Florida include:

  • Loss Damage Waiver (LDW): This limits your responsibility for vehicle damage including theft protection.
  • Supplemental Liability Insurance (SLI): This covers you in the event of an accident with a third party while using the rental vehicle.
  • Personal Accident Insurance: This is a great way to protect yourself financially in case of an accident.
  • Roadside Assistance Protection: This gives you 24/7 breakdown assistance for a wide range of common events that can result in a car becoming immobile.
  • Emergency Sickness Protection: This covers you or your passengers if you get sick while on vacation, securing you against costly medical fees.

Please note that these protection packages are limited to your territorial restrictions which usually include the state you pick up your vehicle in and the surrounding states. It’s always a good idea to check with your rental company and your personal auto insurance provider to understand what coverage you already have and what additional coverage you might need.

What are the requirements for auto insurance in Florida in 2023?

In 2023, Florida auto insurance laws require every driver to have at least two types of auto insurance coverage:

  1. Personal Injury Protection (PIP): This coverage pays for your medical expenses or your passengers’ medical expenses after an accident, regardless of who is at fault. The minimum required limit is $10,000.
  2. Property Damage Liability (PDL): This coverage pays for damage you cause to someone else’s property in an accident. The minimum required limit is also $10,000.

These are the minimum requirements, but many drivers choose to carry additional coverage such as bodily injury liability, collision, and comprehensive coverage to further protect themselves financially1. For a leased car, the leasing company might require you to have full coverage insurance which includes both comprehensive and collision insurance.

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