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Company Car Insurance Rules in Florida

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Posted on February 22, 2024

Millions of people drive every day as part of their jobs, including truck drivers, bus drivers, delivery drivers, rideshare drivers and police officers. If you get involved in a car accident while driving a company car, it can be difficult to understand who is liable, or responsible for paying for the crash. Businesses in Florida are required to have commercial auto insurance policies on company vehicles.

Florida’s Insurance Requirements

In Florida, all motor vehicle drivers are required to carry at least $10,000 in personal injury protection (PIP) insurance, $10,000 in bodily injury liability per person, $20,000 in bodily injury liability per accident and $10,000 in property damage liability insurance.

Florida is a no-fault state, meaning that after a car accident, a driver will seek coverage for medical bills and losses from his or her own insurance provider, regardless of fault. However, vehicles used for business purposes operate under a different set of insurance rules.

Commercial Vehicle Insurance

Any company in Florida that uses vehicles for its business must carry commercial vehicle insurance. This includes companies with a fleet of vehicles owned by the business, such as trucks or buses, as well as the business owner’s personal vehicle.

While the vehicle is being used by an employee within the course and scope of employment, the commercial insurance policy covers the vehicle, the driver and any passengers in an at-fault accident. The required amounts of commercial motor vehicle insurance under Florida Statutes § 627.7415 are:

  • $50,000 per occurrence for a commercial motor vehicle with a gross vehicle weight of 26,000 pounds or more, but less than 35,000 pounds.
  • $100,000 per occurrence for a commercial motor vehicle with a gross vehicle weight of 35,000 pounds or more, but less than 44,000 pounds.
  • $300,000 per occurrence for a commercial motor vehicle with a gross vehicle weight of 44,000 pounds or more.

The vehicle must have been used for business purposes at the time of the accident for this insurance to apply, such as running work errands, making deliveries, picking up supplies or driving to a work conference. It does not cover accidents that occur while commuting to and from work. In these cases, the driver’s personal auto insurance policy applies.

Who Pays for a Company Car Accident in Florida?

If you get involved in a motor vehicle accident in a company car, your financial coverage options will depend on the circumstances. If your injuries are serious enough to meet Florida’s tort exemption, allowing you to file outside of the no-fault insurance system, you may be able to bring a claim against the other driver for causing the crash.

The other driver’s personal auto insurance policy would provide primary coverage, then your company’s commercial vehicle insurance would pay for any remaining costs. If you only have the no-fault insurance option, you could file a claim against your employer’s commercial vehicle insurance policy as well as your own auto insurance policy for coverage.

Another option may be bringing a personal injury lawsuit against your employer for negligence, or the failure to use reasonable care. This may be an option if your employer was careless or reckless, such as by failing to properly inspect, repair and maintain the company’s fleet. Discuss your legal options after a company car accident with a lawyer by contacting Vanguard Attorneys for a free consultation.