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The Florida No-Fault Law requires owners of motor vehicles with four or more wheels (excluding taxis and limousines) that have been in the state for at least 90 consecutive or non-consecutive days during the past 365 days to purchase a policy delivered or issued for delivery in this state. The minimum coverage is:

User Mjlee
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Final answer:

The question discusses the Florida No-Fault Law and car insurance rates, highlighting the factors that can affect insurance costs and how premiums collectively cover damages from accidents.

Step-by-step explanation:

The subject of your question is related to the Florida No-Fault Law and its implications for motor vehicle insurance coverage requirements. Before purchasing or leasing a vehicle, considering the insurance rates is a critical component that extends beyond the immediate transaction at the dealership. The cost of car insurance varies based on several factors, including the vehicle's safety rating, driving history, vehicle history, and the age of the driver.

Car insurance is typically mandated by state law and it serves as a financial safety net, protecting drivers from incurring large out-of-pocket expenses following an accident.

An example of how car insurance works can be understood through a hypothetical scenario: If we have 100 drivers and they each pay an annual premium of $1,860, the insurance company accumulates $186,000, which is used to cover the costs of accidents within that group. This example illustrates the collective pooling of risk, which forms the basis of how insurance premiums are calculated and claims covered.

User Mzimmerman
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The Florida No-Fault Law, commonly referred to as Personal Injury Protection (PIP) insurance, is designed to reduce the need for litigation after accidents by ensuring that certain coverage is in place for drivers. According to this law, owners of motor vehicles with four or more wheels (excluding taxis and limousines) that have been in Florida for at least 90 days (consecutive or non-consecutive) within the past 365 days must have a specific insurance policy. The minimum coverage required under this law typically includes:

1. Personal Injury Protection (PIP):

- This coverage pays for medical expenses, lost wages, and other related expenses irrespective of who caused the accident. It's often referred to as "No-Fault" coverage because it pays out claims regardless of fault.

- The minimum PIP coverage required in Florida is usually $10,000.

2. Property Damage Liability (PDL):

- This covers damage to someone else's property caused by your vehicle. This could include damage to other cars, buildings, fences, etc.

- The minimum PDL coverage in Florida is generally also set at $10,000.

User Michael Savchenko
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