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What Are Florida’s Minimum Requirements for Commercial Auto Insurance Coverage?

Mar 21, 2023

Everybody who owns a car needs auto insurance, but corporate vehicles especially need it in order to avoid potential financial disasters. Furthermore, when using a commercial vehicle, certain legal standards must be followed for commercial vehicle insurance in the state of Florida. 

This blog is intended to help you grasp the concept behind commercial auto insurance in Florida so that you can avoid any legal penalties and keep your vehicles fully protected at all times. By the end of this segment, you will know everything there is about commercial auto insurance and can continue to focus on what matters to you, running a business! 

Florida State Minimum Coverage Requirements

Depending on the state your company resides in, a vehicle that is used for business must have commercial auto insurance, and to follow the law in the state, you must meet certain minimum coverage requirements. For example, in Florida, all cars, whether used for business or pleasure, must have at least a certain amount of liability insurance. 

Here’s what these limits are, according to Insureon.com:

  • $10,000 in insurance for injuries
  • $10,000 in liability for damage to property
  • $10,000 in personal injury protection (PIP)

To help you fully understand what is required in Florida, keep reading as we are going to explain in detail what each of these three types of insurance are and how they can help protect you, your employees, your company vehicle, and those around you.

Bodily Injury Liability Coverage

Each commercial auto insurance policy must include bodily injury liability coverage since it protects the occupants of other vehicles involved in an accident. This type of cover will protect you from financial loss when medical expenses arise for a passenger or 3rd party individual after an accident occurs, one which you were found at fault for. 

It’s crucial to keep in mind that the bodily injury liability policy does not cover the commercial vehicle’s driver and passengers; instead, it only applies to the other driver and passengers involved in the collision.

Property Damage Liability Coverage

Property damage liability coverage is designed to compensate the policyholder for any costs associated with repairing or replacing the property or other vehicles that are damaged as a result of an accident. Because of this insurance, any essential repairs or replacements will be covered. 

In the state of Florida, drivers of commercial vehicles are obliged to obtain a property damage liability insurance policy with a minimum of $10,000 in coverage.

It is essential to bear in mind that this coverage only applies to repairs necessary for damage to the property or vehicle of the other party. It does not cover any damages that could occur to either the business vehicle or the people traveling in it.

Personal Injury Protection (PIP) Coverage

The personal injury protection (PIP) component of a vehicle’s insurance policy, commonly referred to as “no-fault insurance,” reimburses policyholders for medical costs incurred due to a collision with another vehicle. PIP pays for the medical expenditures of wounded policyholders as well as passengers, even if some of the people involved in the accident do not have health insurance.

Since Florida is a no-fault state, coverage under the Personal Injury Protection (PIP) act is required by all Florida vehicle owners, including those commercial operating vehicles. The minimum amount of PIP coverage necessary is $10,000 per person. 

Additional Coverage Options

In addition to the basic coverage standards that must be met in Florida, owners of commercial vehicles may choose to examine extra coverage alternatives to provide themselves with a higher level of safety. The collision policy, the comprehensive coverage, and the uninsured/underinsured motorist coverage are all examples of supplementary coverage possibilities.

Here is a quick peek at what each of these means:

  • Collision: In the case of an accident involving a business vehicle, collision coverage will pay for any damages sustained by the car, regardless of who was to blame for the accident. 
  • Comprehensive: Comprehensive insurance protects the owner of a business vehicle against economic loss if the vehicle is damaged for reasons other than a collision, such as when it is stolen or vandalized. 
  • Under or Uninsured: Uninsured and underinsured motorist coverage pays for damages that are incurred because of an accident caused by a driver who either does not have insurance or does not have sufficient insurance to cover the costs of the accident.

Factors Affecting Commercial Auto Insurance Rates

When it comes to cost, the type of vehicle, the number of vehicles, the driver’s prior driving history, the location of the business, and the goods or services being transported are just a few of the variables that may have an impact on the price of business vehicle insurance.

The insurance company will also take into account the deductible amount and any other coverage options in addition to the necessary level of coverage, which will raise your overall premium rate and monthly cost.

The Importance of Commercial Auto Insurance

Any company that relies on automobiles in the course of its operations should have commercial auto insurance. In the case of an accident, the company runs the danger of suffering a financial loss if it does not have adequate insurance coverage. 

The business, the cars, and the individuals who use the vehicles are all protected by the coverage provided by commercial auto insurance. This is why business owners must consider the type of coverage required carefully and collaborate with a seasoned insurance agent to ensure that they have obtained the proper coverage at the appropriate levels.

The Cost of Commercial Auto Insurance

Small company owners must comprehend the variables that affect the price of their commercial vehicle insurance coverage. Although the average monthly cost of business vehicle insurance is $142, the actual cost can vary significantly based on many factors.

Location is one aspect that influences the price of commercial vehicle insurance. A greater rate will be observed in densely inhabited areas and ZIP codes with a high accident rate. Your premium can also be more expensive if your area of work requires you to travel across state boundaries instead of just locally.

The kind of vehicle used and its frequency of use are other factors. Coverage for a trucker working for hire will be more expensive than one for a local real estate agent who commutes to and from the office to see homes. Your policy’s cost will increase if you insure more vehicles or use your existing ones more regularly.

While calculating the policy rate, the driving history of everyone who drives for a business is also considered. Your commercial vehicle insurance coverage will cost higher the more accidents, claims, and driving infractions a driver has. In some jurisdictions, the price of commercial insurance also considers the credit score of your firm and the credit score of the primary business owner. 

Is Commercial Auto Insurance Worth It?

The simple answer is that company vehicle insurance is unquestionably a sensible investment. The kind of work you do, how much time you spend on the road, and how often you use automobiles all affect your likelihood of getting into an accident.

Businesses that don’t carry enough insurance run the risk of being held accountable for a variety of damages. These losses might include the recompense for injuries or fatalities, medical expenses, property damage, and legal fees.

These expenditures might have a major financial impact, and it’s even feasible that they could push the business into bankruptcy. Commercial car insurance helps businesses reduce their exposure to these kinds of risks by covering damages brought on by accidents, theft, or vandalism.

Penalties for NOT Holding the Minimum State Requirements

All business vehicles in Florida are required to have a specific amount of liability insurance under state law. If the minimum requirements are not met, the business may be subject to financial penalties, other sanctions, and perhaps the suspension of its business license.

Let’s say an accident occurs and the business is not adequately covered. In that situation, the business may be held liable for all losses that occur from the accident.

How Del Toro Insurance Can Help

Del Toro Insurance is devoted to offering Florida businesses top-notch services for commercial vehicle insurance. Our team of expert agents will collaborate with you to fully grasp your needs and help you choose the finest options for protection for your business. Since we work with many reputable insurance companies to offer competitive prices and tailored coverage, we can find a policy that fits your demands and budget.

We ensure you comply with all legal obligations and offer expert advice for various coverage options. You may also count on us to provide customized client care and support throughout the claims process, ensuring your business is protected when necessary.

Del Toro Insurance is committed to making the insurance process as simple and hassle-free as possible since we recognize the value of commercial vehicle insurance for companies. To learn how we can protect your company, contact us right now.

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