Do I have Higher State Limits in another State?
If I have auto insurance in Florida and If I am involved in a car accident in another
state with higher minimum liability amounts, is there an “Out of State
Insurance” provision that would raise my limits to the state’s minimum
liability amounts that the accident happened in?
Unfortunately what is believed by most as the State minimum,
PIP and $10,000 or property liability DOES NOT meet the Florida Financial responsibility
Chapter 324, §324.011 F.S., Purpose of the Law, states: It is the intent of
this unit to recognize the existing privilege to own or operate a motor vehicle
on the public streets and highways of this state when such vehicles are used
with due consideration for others and their property, and to promote safety and provide financial security
requirements for such owners or operators whose responsibility is to recompense
others for injury to person or property caused by the operation of a motor
vehicle. Therefore, it is required herein that the operator of a motor vehicle
involved in an accident or convicted of certain traffic offenses meeting the
operative provisions of §324.051(2) shall respond for such damages and show
proof of financial ability to respond for damages in future accidents as a
requisite to his or her future exercise of such privileges.
Operation of the law is triggered
by an accident which involves: bodily injury; or property damage when a vehicle
is rendered inoperative; or certain serious traffic violations, such as driving
under the influence and committing a felony with a motor vehicle. If, at the
time of the occurrence, there is auto liability insurance in effect with limits
of not less than 10/20/10, the law’s requirements are satisfied.
Alternate ways that satisfy the law include being a qualified self-insurer or
posting a bond or cash that guarantees responsibility for the 10/20/10 limits.
The law continues :
The Personal Auto Policy, as well as other standard policies provides that limits
afforded will meet the minimum requirements of law in other states. Thus, for
example, a Florida insured with limits of 10/20/10
may be in a state that requires 25/50/10; the policy will be interpreted as
affording such limits under those conditions wherein it is required of the
According to our interpretation of this law if AND ONLY IF, you
carry 10/20/10 to meet the Florida Financial Responsibility
law then AND ONLY THEN CAN YOUR Florida policy be liberalized to meet
the Financial Responsibility law of another state.
If you carry PIP and PD or $10,000 ONLY then NO, you are out of luck!
As always – This opinion is based on a FLORIDA “Standard ” auto policy. A review of your complete policy is always necessary. Council with your own agent or attorney for more details for a specific claim or situation on your policy
Christopher Kazor, CIC