If you are a resident of the state of Florida and own a car, it is mandatory for you to buy car insurance. Your car should be insured by a company licensed by the Florida Department of Insurance. If you fail to maintain proper insurance for your car, you are likely to have your driving license suspended. You can even lose your car registration for a period up to 3 years. In addition, you can be fined from $150 to $500.

Before you buy yourself a car insurance policy in Florida, you must know the minimum requirements of the state law. The state of Florida follows a No- Fault policy which means that regardless of who is guilty of causing the accident, you insurance company has to pay for the damages. The laws under No- Fault policy vary from state to state.

As per the state law, Florida car insurance owners are required to have the minimum coverage given below:

1. Property Damage Liability (PDL) Coverage with a minimum limit of $10,000: Compensates for the damage to property cause by policyholder or their family members.

2. Personal Injury Protection (PIP) Coverage with a minimum limit of $10,000: Pays to cover costs of an injury irrespective of whose fault it is. It also compensates for the bodily injury of the uninsured passengers of the vehicle. If the liability cover falls short of covering the economic damages, you can sue the other party for permanent injury or death.

3. Bodily Injury Liability (BIL): If you have been convicted of a traffic offence previously, you may be required to buy this coverage. This coverage pays for permanent injury or death when the accident is caused due to insurer's negligence. It also covers the fees for legal representation in the event of a lawsuit.

You have the option of buying Uninsured/ Underinsured Motorist bodily injury liability to pay for damages caused by an uninsured/underinsured driver. Under the state law, it is not mandatory to buy this insurance. You can also buy Collision or Comprehensive coverage but insurance companies are not bound by law to offer them.

Residents of Florida pay very high car insurance premiums. The average car insurance rate for Florida residents in the year 2009 was $1,667. You can shop for cheap car insurance policy once you are familiar with the state laws regarding car insurance. You should also consider your budget and needs before buying a car insurance policy.