Is Rental Car Insurance Mandatory in Florida? [Updated 2023]

As a business consultant, I recently assisted a client in starting a car rental business in Tampa, Florida. One of the most common questions I received from my client was whether rental car insurance was mandatory in Florida. In this blog post, I will provide detailed information on this topic, based on my experience and research.

What is Rental Car Insurance?

Rental car insurance is an optional insurance coverage that can be purchased when renting a car. It provides additional protection to the driver and passengers in the event of an accident or theft. Rental car insurance typically covers liability, collision, and comprehensive damages.

Driving without car insurance in Florida can result in serious legal and financial consequences. Florida law requires drivers to carry a minimum of $10,000 in personal injury protection (PIP) coverage and $10,000 in property damage liability (PDL) coverage.

If you are caught driving without insurance in Florida in 2023, you may face fines, license suspension, and even jail time. In case of an accident, you may be held personally responsible for the damages and injuries caused.

While rental car insurance is not mandatory in Florida, it is recommended to consider purchasing additional insurance coverage to protect yourself and your rental car.

Here are some of the insurance options that you can consider:

Collision Damage Waiver (CDW)

Collision Damage Waiver (CDW) is an optional insurance coverage that protects you against the cost of repairing or replacing your rental car in case of an accident, theft, or vandalism. CDW coverage typically excludes damages caused by reckless driving or driving under the influence of drugs or alcohol.

Liability Insurance

Liability insurance provides coverage for damages and injuries caused to other people and their property in case of an accident. While rental car companies in Florida provide minimum liability coverage, it may not be sufficient to cover the damages in case of a serious accident.

Personal Accident Insurance (PAI)

Personal Accident Insurance (PAI) provides coverage for medical expenses and accidental death and dismemberment in case of an accident. PAI coverage typically covers the driver and passengers of the rental car.

Personal Effects Coverage (PEC)

Personal Effects Coverage (PEC) provides coverage for loss or theft of personal belongings in the rental car. PEC coverage typically includes items such as laptops, cameras, and clothing.

It is important to carefully review and compare the insurance options offered by the rental car company and other insurance providers to make an informed decision.

The average cost of rental car insurance in Florida is around $30 per day.  The cost of rental car insurance in Florida varies depending on several factors, including the type of coverage, rental car company, and location. According to a study by Wallethub, the average cost of rental car insurance in Florida is around $30 per day.

It is important to note that the cost of rental car insurance can add up quickly and significantly increase the total cost of renting a car. Therefore, it is recommended to carefully review and compare the insurance options and their costs before making a decision.

Here are some important rules and regulations to keep in mind when renting a car in Florida:

Age Requirements

Most rental car companies in Florida require drivers to be at least 21 years old to rent a car. Some companies may have a minimum age requirement of 18 years old, but they may charge higher fees or require additional insurance coverage.

Driver's License

You must have a valid driver's license to rent a car in Florida. If you are an international visitor, you must have a valid driver's license from your home country or an International Driving Permit (IDP).

Additional Driver

If you plan to share driving responsibilities with another person, you may need to add them as an additional driver on your rental car agreement. Some rental car companies may charge an additional fee for adding an extra driver.

Fuel Policy

Most rental car companies in Florida require you to return the rental car with a full tank of gas. If you do not return the car with a full tank, the rental car company may charge you for refueling the car at a higher rate.

If you are involved in an accident while driving a rental car in Florida, the liability for damages and injuries will depend on several factors, including the cause of the accident, the insurance coverage of the rental car company, and your own insurance coverage.

If the accident was caused by another driver, their insurance company may be responsible for covering the damages and injuries. If the accident was caused by your own fault, your insurance coverage or the rental car company's insurance coverage may be responsible for covering the damages and injuries.

It is important to review the insurance coverage and terms and conditions of your rental car agreement to understand your responsibilities and liabilities in case of an accident.

Yes, foreigners can rent a car in Florida as long as they have a valid driver's license from their home country or an International Driving Permit (IDP). Some rental car companies may require additional documentation, such as a passport and visa.

In summary, rental car insurance is not mandatory in Florida, but it is recommended to consider purchasing additional insurance coverage to protect yourself and your rental car. When renting a car in Florida, it is important to review and compare the insurance options, rules and regulations, and terms and conditions of the rental car agreement. By being well-informed and prepared, you can have a safe and enjoyable driving experience in Florida.