What Is Florida Self Car Insurance?
Brian O Sutter
Insurance Laws
Self-car insurance is not disallowed in Florida, however, those who want to self-insure their vehicles need to file for approval first and meet certain requirements. People who want to self-insure are those who deem it safer and better than availing insurance policies from outside providers. What does it mean if you are self-insured? Here are the things you know before deciding to apply for one.
What Is Self Insurance?
When you are self-insured, it means that you intend to pay for all financial costs involving a car accident. This involves damages and medical treatments.
Normally, Florida requires a minimum of $10,000 for Property Damage Liability and Personal Injury Protection as these policies protect car accident victims from delayed medical treatments and expensive payment where property damage is concerned. If you are planning to be self-insured, you have to keep these coverage costs in mind because these are how much you may potentially need to spend when an accident happens.
How Can You Be Self-Insured?
With the possible costs in mind, Florida does not allow just anyone to be self-insured. Certain requirements need to be fulfilled to prove that you are capable of covering all expenses when a car accident happens. Expenses include both your and the other party’s damages.
If you want to be self-insured in Florida, you have to meet the minimum unencumbered net worth of $40,000 to qualify. This would assure the state that you can be responsible for any expenses that need to get paid following a car accident. In addition, you have to maintain that balance. If you think you fit the bill, then the paperwork comes next.
To certify your qualifications, you need to have your financial statements notarized, stating that you meet the minimum amount requirement, which is basically the combined limit of Florida’s mandated insurance policies. You should also prepare your driver information and vehicle details as part of the registration.
Do You Need To Be Self-Insured?
Besides avoiding fees from insurance companies, there are also times when self-insurance is the best option. If you are one of these, you may consider being self-insured:
• You Have Independent Wealth - If meeting the minimum required cost for self-insurance is not difficult for you and there is nothing to compromise your financial stability, you are free to apply for self-insurance. It can save you from monthly dues and negotiations as you will only be dealing with yourself and making your own decisions.
• Vehicle Companies - Companies who are in the automobile industry might be better off being self-insured. It is an exercise of prudence and is also a strategic way of dealing with risks as insurance from other providers may be more costly than being self-insured with the number of vehicles that you need to register.
Self-insurance is not something you can do on a whim. Deciding to be self-insured is a huge responsibility and remember that it does not completely erase other risks that can come with car accidents. Ask advice from an auto accident lawyer to help you make the best decisions.