I read online that I don’t have to carry auto insurance in Florida…is that true?

Believe it or not, that is a more complicated question than it appears. Most people would answer ‘of course you do’. In fact, every state in the U.S. requires some sort of financial backing for you to be able to legally operate a motor vehicle on public roadways. For almost all individuals, the way they secure that financial backing is via an insurance company who agrees to put up money in the event you are in an accident, in exchange for you paying monthly premiums. The better of a risk you are, the lower the monthly cost. Simple, right?

Well, this is really a trick question, because nowhere does the state tell you that you have to have an ‘insurance company’ back you up financially. You can actually elect to do it yourself - it’s called ‘self-insurance’ (large companies typically do this, electing to only carry insurance for claims over a certain dollar amount, to avoid catastrophic losses). Of course, the state makes you put up collateral equal to the minimum coverages that you are required to carry. That is a whole process in itself. In addition, you risk losing the entire amount if you are involved in an accident, so most people would rather not roll the dice and instead prefer to pay small amounts each month and transfer the risk to the insurance company.

The best way to protect yourself is to maintain a track record of continuous, uninterrupted insurance; Keep your driving record clean and up-to-date; Don’t allow other people to drive your car - even for quick trips. Anytime you lend your car, you are also lending your insurance (and your record) with it! Get established with a local agent - we’re happy to discuss your options with you and get you started on the path toward saving money!