Florida Insurance Questions Answered

Florida Car Insurance FAQ

The average Florida driver pays $1,742 a year for car insurance. This is significantly higher than the national average rate of $1,311. Shopping around for the best price has the potential to save you hundreds of dollars a year.

So what do you get for your $145 month? The peace of mind that comes from knowing that if you are responsible for an accident while driving your car, you will not face insurmountable financial losses.

Car insurance is a mixture of mandatory and optional coverage. In the state of Florida, all drivers are required to carry car insurance that meets or exceeds the following:

  • $10,000 in property damage liability insurance: This covers the cost to repair damage you may cause to others in a collision.
  • $10,000 in personal injury protection (PIP): This covers your own medical bills if you are injured in an accident, regardless of fault.

These minimum requirements are lower than in most states and may not be enough to cover you if you are responsible for a serious collision. That is why many motorists opt to purchase more coverage from among the following options:

  • Bodily injury liability insurance: This covers other people’s medical treatment and lost wages if you are responsible for a collision and the costs exceed what their PIP insurance will cover. Given the high cost of medical care, it is very likely that this insurance will come in handy.
  • Collision insurance: This covers collision-related damage to your own vehicle, regardless of fault.
  • Comprehensive insurance: This covers non-collision-related damage to your own vehicle, such as that caused by a falling object or a flood.
  • Uninsured motorist insurance: This covers your losses if you are in an accident with an uninsured, underinsured, or hit-and-run driver and your medical costs exceed what your PIP can cover.

Many insurance companies offer additional coverage options such as roadside assistance and rental car reimbursement. An independent insurance agent can review all your options with you.


It is illegal to drive an uninsured vehicle in Florida. However, a whopping 26.7% of motorists in this state are doing just that.  If you are caught driving without insurance in Florida, you can face the following penalties:

  • First offense:  The suspension of your license and registration for up to three years or until you provide proof of insurance, whichever is shorter. You will need to pay a $150 reinstatement fee to get your license and registration back.
  • Second offense: The suspension of your license and registration for up to three years or until you provide proof of insurance, whichever is shorter. You will need to pay a $150 reinstatement fee to get your license and registration back unless your violation was within three years of the previous violation. In that case, you would need to pay a $250 reinstatement fee.
  • Subsequent offenses: The suspension of your license and registration for up to three years or until you provide proof of insurance, whichever is shorter. You will need to pay a $150 reinstatement fee to get your license and registration back unless your violation was within three years of your first violation. In that case, you would need to pay a $500 reinstatement fee.


Florida is a “no-fault state,” meaning that the cost of medical treatment needed due to a collision will be covered by the injured party’s personal injury protection insurance.

However, PIP often does not have high enough coverage limits to cover all medical bills, particularly if surgery and physical therapy are needed. If this happens, the responsible party can be held liable.

When it comes to car insurance, there is no one company that is the best for all drivers. Each insurance company has its own method for assessing risk and calculating rates, so it pays to shop around for the policy that works best for you.

Independent insurance agents make comparison shopping easy. These agents have partnered with a variety of highly rated insurers and can obtain customized quotes from each of them. That way, you can be sure you are getting the coverage you need at a competitive price.

Florida Homeowners Insurance FAQ

The average cost of homeowners insurance in Florida is $1,993 a year. This is significantly higher than the national average of $1,311 a year.

In fact, Florida has the highest average rates in the county.  This is due in no small part to its long coast line, which leaves much of the state susceptible to hurricane and tropical storm damage.

Of course, not everyone in the state will be paying $166 a month for coverage. Your rates could be higher or lower according to a number of different factors such as:

  • The type of home you are insuring
  • The size and value of your home
  • Whether your house includes a basement
  • Your claims history and credit score
  • The amount of your deductible

Independent insurance agents can help you compare policies and rates from a variety of insurance companies so you can be sure that the policy you select is offered at a competitive price.

Homeowners insurance is designed to cover you against many of the risks you face as a property owner in Florida. You can get coverage for damage caused by such hazards as:

  • Hurricanes and tropical storms, which commonly affect properties in the state
  • Tornadoes, this state sees an average of 54.6 tornadoes a year
  • Hailstorms, which can damage roofs and siding
  • Fires, including wildfires and accidental fires
  • Property crimes, including burglary and vandalism
  • Personal liability lawsuits, if you or someone in your household, including your pets, is responsible for accidental injuries or property damage to others

While these hazards are all covered by most homeowners insurance policies, there are a few common risks that are not. Home insurance policies do NOT cover against:

  • Floods
  • Landslides
  • Sinkholes

Fortunately, a local independent insurance agent can help you obtain supplemental coverage at competitive rates so that your property is protected against these risks as well.

You will want to be certain that you have enough coverage to fully rebuild your home and replace your belongings in the event that your home suffers a total loss, such as might happen with a fire.

Your dwelling insurance will cover the structure of your home, while your contents insurance will cover your personal property. There are often limits on different categories of belongings, so if you have any large collections or particularly valuable property, you may need to purchase additional endorsements or riders in order to be fully covered.

An independent insurance agent can help you determine how much coverage is sufficient for you. Your agent can also help you review your coverage every few years to make adjustments if necessary.

Homeowners insurance is not required by law.  However, it is required by mortgage providers if you are still paying for your home, and by lenders if you apply for or hold a home equity loan or line of credit.

Whether you need to have a home insurance policy, the better question is should you? For most people, their home is the most expensive piece of property they own. Wouldn’t you want to be sure that your property is covered against the extreme weather events that are so common in Florida?

Homeowners insurance is expensive in Florida, so it’s a good idea to shop around for coverage. You will want to purchase a policy that combines solid coverage, reliable service, and a competitive price. Doing so is easy when you work with an independent insurance agent.

These agents have partnerships with a variety of highly rated insurance companies. This enables them to obtain customized quotes from each so they can help you obtain the best policy to meet your coverage and budgetary needs.

There are more than 1,500 independent agents in the state of Florida. Find an insurance agent near you to get started.

Florida Business Insurance FAQ

The cost of business insurance can vary significantly from one business to the next. This is because rates are calculated using a number of factors such as:

  • The type of company you are insuring
  • The crime rate and weather risks in the ZIP code where your company is located
  • The number of employees you have
  • Your company’s annual revenues
  • The value of your company’s assets
  • Your company’s liability risks
  • The coverage options you wish to include

The only way to find out how much a policy will cost you is to request customized quotes from a few different insurance companies. Independent insurance agents make comparison shopping easy.

Business insurance offers a wide range of coverage. A comprehensive policy will include:

Coverage against liability risks

Liability lawsuits can be extremely expensive, even if the courts ultimately rule in your favor. Commercial liability products are designed to pay for your court costs, legal fees, financial damages, and other related costs if your company is sued for a covered event.

There are a number of different liability insurance products available for you to choose from. You will want to be sure that all of your company’s liability exposures are covered.

Coverage against property loss

There are a number of ways that your business in Florida may sustain property loss or damage. These include hurricanes, windstorms, tornadoes, fires, floods, and property crimes.

By coupling commercial property insurance with supplemental policies like inland marine insurance, boiler & machinery insurance, and flood insurance, you can ensure that your business is suitably covered against all of its various risks.

Coverage against lost income due to forced closure

Sometimes, major disasters like hurricanes and wildfires can lead to a temporary, but prolonged, closure of businesses while repairs are made and utilities are restored. If your business must remain closed for more than a week, the revenue losses can be devastating.

Fortunately, if you add business interruption insurance to your policy, your business will be able to receive a continuation of income during the times it must remain closed due to a covered event.

Coverage for employee injuries

If your employees are injured on the job, workers’ compensation insurance can cover the associated costs, including medical treatment, lost wages, and death benefits. In Florida, this insurance is required for construction companies and all other companies if they have at least four employees.

Business insurance in and of itself is not required in Florida, but some parts of it may be for certain business. 

  • Commercial vehicle insurance is required by law for any business-owned vehicles.
  • Workers’ compensation insurance is required by law for any business that has at least four employees as well as for all construction firms, regardless of the number of employees.
  • General liability insurance may be required of contractors before they are hired do any jobs.

Additionally, if you are applying for a business loan or line of credit, lenders are likely to require proof of liability and property insurance.

Regardless of whether business insurance is required, it can have significant money-saving benefits if your business is impacted by a disaster. In Florida, insurance companies pay about $20 billion in business insurance claims each year.

Building a comprehensive business insurance policy can be complex, particularly if you are unfamiliar with the ins and outs of commercial insurance. Fortunately, independent insurance agents are ready to help.

These agents can help you identify all your business’s various exposures and can recommend the right policies to cover against each of them. They can also shop around to find you great coverage at a competitive rate.

There are more than 1,500 independent insurance agents in the state of Florida. Set up a one-on-one consultation with an agent near you to discover the many ways they can save you time and money.

Florida Workers’ Compensation Insurance FAQ

The cost for workers’ compensation coverage will vary from one company to the next. This is because it is based on the number of employees you have, the types of jobs they do, your overall payroll, and your company’s safety record. 

How is workers' comp calculated in Florida?

The National Council on Compensation Insurance (NCCI) assigns a risk classification code to every occupation. The codes are used to determine workers’ compensation rates, based on the loss experience of employers within each code. In this state, rates for each class code are overseen by the Florida Department of Insurance according to recommendations by the NCCI.

In the example below, you can see that electricians in Florida are assigned the classification code 5190.

Example: Electrician = 5190

The classification code 5190 is assigned a base rate of $4.32 per every $100 of employee payroll.

Therefore, for an electrician who earns $50,000 a year, the cost to cover that worker with workers’ compensation insurance is:

Base rate ($4.32) x Annual salary ($50,000) / 100 = $2,160

Estimated workers’ compensation premium: $2,160

More dangerous jobs, like construction, will be assigned higher base rates, while less dangers jobs, like clerical work, will be assigned lower rates.

What about experience modifiers and discounts?

Once you have established a workers’ compensation claims history, your company may be assigned an experience modification factor, which can increase or decrease your workers’ compensation premium for a given year according to whether your company’s worker injuries are higher or lower than other companies in your industry.

Additionally, insurance companies have the option to offer policy discounts, incentives, and credits to companies at their own discretion. This means that shopping around for the best price for coverage has the potential to save your company a significant amount of money each year.

Workers’ compensation is designed to cover the costs associated with workplace injuries and occupational illnesses. In Florida, it will cover the following:

  • Medical treatments: Injured employees can seek medical care from authorized physicians who will guide the treatment plan. All medical costs will be covered, including doctor’s visits, hospitalization, associated prescriptions, physical therapy, prostheses, and follow-up care. Employees are not to pay anything out of pocket.
  • Mileage reimbursement:  Workers’ compensation will reimburse injured employees for miles driven to and from medical appointments and the pharmacy.
  • Disability pay: This provides employees with compensation if a work-related injury requires them to take more than one week off work to recuperate. If the recovery takes more than 21 days, workers’ compensation will also cover the first week of lost pay. There are different types of disability:
    • Temporary total disability (TDD): This is when an employee cannot work for a given amount of time. In this case, your employee can receive weekly payments of two-thirds of their average weekly pay until they can return to work. In the case of some injuries, Florida workers’ compensation will pay 80% of their average pay for up to six months.
    • Temporary partial disability (TPD): This is when an employee may return to work but with restrictions and limitations. If the employee is earning less than 80% of their previously earned wages while working under these restrictions, workers’ compensation can help to cover a portion of the difference in pay.
    • Impairment income benefits (IIB): This is paid when an employee has reached their maximum medical improvement but is permanently impaired. The amount of the payment to the employee will be determined according to their impairment rating.
    • Permanent total disability (PTD): This is when an employee’s injuries have left them unable to ever work again. In this case, workers’ compensation will pay out disability benefits for the remainder of their life.
  • Death benefits: In the event that a work-related injury results in an employee’s death within five years of continuous disability, the worker’s spouse and dependents are eligible for up to $150,000 in death benefits.  This includes:
    • Up to $7,500 in funeral and burial costs
    • Compensation to the employee’s spouse and dependents
    • Educational benefits for the employee’s surviving spouse

Talk to a local insurance agent to learn more.

With few exceptions, all construction companies as well as all other businesses that have at least four employees in Florida are required to purchase workers’ compensation for their employees. You may not deduct the cost of this insurance from your employees’ wages.

If an employee is injured on the job, they should report the injury to their supervisor within 30 days of the accident so that the workers’ compensation claim can be started. As the employer, you will then need to contact your insurance company as soon as possible, but no more than one week later than the day you are made aware of the injury.

With the exception of emergency treatment for life-threatening injuries, an injured worker may then seek medical attention from an authorized provider only. If the claim is approved, workers’ compensation will cover all necessary medical bills and associated costs.

The authorized physician will determine when the employee is cleared to return to work.

Workers’ compensation claims are sometimes denied. This may happen for a number of reasons, such as if the claim was not submitted in a timely manner or if the insurance company has reason to believe that:

  • The injury was intentionally self-inflicted
  • The injured employee was under the influence of drugs or alcohol at the time of the accident
  • The injury did not actually occur while the employee was on the job
  • The injured worker was not an official employee of the company at time of the accident

If you or an employee believes that a claim was unjustly denied, you should first attempt to contact the insurance company directly to try to resolve the problem. If that fails, you will then need to file a formal appeal.

To file an appeal, you will need to submit a Petition for Benefits form to the Clerk of the Office of the Judges of Compensation Claims (OJCC) within two years of the date of denial.

A mediation hearing will be set up and a mediator will try to help you and your insurance company settle the dispute. If you are still unhappy with the mediator's recommendations, your case will be assigned to a workers’ compensation judge. At this point, you may want to seek legal representation.

At the hearing, you and the insurance company will be able to present evidence and witness testimony. The judge will then render a verdict within 30 days. If you are unhappy with the judge’s decision, you have the right to appeal the decision to Florida’s First District Court of Appeals.

When it comes to workers’ compensation, some insurance companies are better suited than others to cover businesses that operate in certain industries. Independent insurance agents can work with a number of insurance partners, so your agent can shop around to find you a suitable company that offers coverage at a competitive price.

There are more than 1,500 independent insurance agents located in Florida. Find an agent near you to begin your search for the best workers’ compensation insurance policy for your business.