Find Cheap Auto Insurance Quotes in Florida
Drivers in Florida who are having trouble getting car insurance through a typical company may be able to find coverage through the Florida Automobile Joint Underwriting Association (FAJUA).
While coverage from FAJUA tends to be much more expensive than a regular policy, it may be the best option for inexperienced drivers and drivers with a history of violations or car accidents.
Florida law mandates that all motorists have car insurance. Despite this law, 20.4% of Florida drivers were uninsured in 2019. FAJUA was created to provide auto insurance to Floridians who have been unable to purchase insurance at a private company.
What is the Florida Automobile Joint Underwriting Association (FAJUA)?
In 1973 the Florida insurance commissioner created the Florida Automobile Joint Underwriting Association. FAJUA was specifically created to provide coverage to high-risk drivers. Commonly referred to as the "high-risk market" or "market of last resort," FAJUA is the final option for drivers who cannot find insurance elsewhere.
FAJUA functions like private and voluntary insurers, such as Geico or Allstate, and offers similar coverage. All insurers authorized to write automobile liability insurance or automobile physical damage insurance in Florida are required to be members of the Association. Each member contributes to the pool of funds that FAJUA policyholders receive their claim payments from. There are hundreds of FAJUA providers located all across Florida.
Being a high-risk driver comes at a high cost. FAJUA's rates are upwards of 200% more than customers would pay for similar plans at other companies. It is meant to be an intermediate source of insurance while the motorist builds a better driving history. Once they improve their record, they can get approved for through standard insurance companies.
Eligibility for FAJUA
FAJUA is available for all Florida residents who have a vehicle registered in the state. You do not need to provide any proof of inability to find coverage at voluntary insurance companies to be eligible for coverage by FAJUA.
Coverage is also available to nonresidents in the following instances:
- If you are a nonresident of Florida but own a private passenger vehicle registered in Florida
- If you are a nonresident who is a member of the United States military forces with an auto registered in another state and stationed in Florida
- If you are a nonresident, full-time college or university student attending school in Florida with an auto registered in another state
If you are an applicant currently insured by FAJUA, provided there was no lapse in coverage or insufficient payment of premiums, you will be entitled to renewal, at the same premium rates including any applicable discounts.
Insurance policies at FAJUA
FAJUA’s basic policy coverage is fairly similar to the coverage offered by larger private insurance companies. In accordance with the Florida Motor Vehicle No-Fault Law, every policy needs to include personal injury protection (PIP) coverage of at least $10,000 and property damage liability (PDL) of at least $10,000. Coverage is also available in combined single liability limits of up to $300,000, which means that for each accident, up to $300,000 would be available for personal injuries and property damage combined.
Additional coverages are available
Although Florida’s no-fault law does not require bodily injury (BI) liability coverage for Motorists in general, the Florida Financial Responsibility Law requires it after you have been involved in certain types of accidents or are guilty of certain traffic violations.
FAJUA does offer bodily injury protection. Even if you are not required to have BI coverage, it can provide financial protection.
Bodily injury liability coverage pays for the injuries to other drivers in the case of an accident where you are liable.
The minimum BI coverage you can find with FAJUA is $10,000/$20,000, and the maximum coverage is $100,000/300,000, which means that for each accident, FAJUA will pay up to $100,000 to cover the injuries of each person in the accident, with a maximum of $300,000 for everyone injured in the accident combined. As with the combined single limits of liability for PIP and PDL, the combined single limits of liability for BI and PDL cannot exceed $300,000.
Medical payments coverage
FAJUA offers medical expense coverage for drivers. If you’ve already committed to paying a deductible for your personal injury protection, medical payments coverage will not be offered by FAJUA. For all vehicles on the same policy, medical payments coverage is offered at limits of $500, $1,000 and $2,000.
Comprehensive and collision coverage
FAJUA offers comprehensive and collision coverage. These two must be written together. Policies for coverage are available at deductibles of $250, $500 or $1,000.
Premium payment plans
There are two options for paying your premium when FAJUA is your insurer. If your full annual premium is less than $1,300, you must pay it upon FAJUA’s acceptance of your application.
If your annual premium is at least $1,300, you are eligible for their installment payment plan. Drivers enrolled in the installment plan must put down a deposit of at least 30% of their total annual premium and will have the remaining balance billed to them in eight monthly statements. Service fees will also be charged in the installment plan: $10 with the deposit and an additional $3 with each monthly bill.
However, if a portion of your annual premium is being financed by a premium finance company, you're ineligible for the installment payment plan.
As stated earlier, in most cases FAJUA’s policies are very similar or identical to policies from private insurance companies, But if a FAJUA customer fails to pay their premium on time, their policy will be canceled.
How to get insurance with FAJUA
Applying for insurance with FAJUA is a fairly uncomplicated process. Because all insurers that are authorized to write auto insurance in Florida are required to be members of FAJUA, it’s easy to meet with an agent near your home.
To find an agent near you, consult FAJUA’s directory.
To get in touch with a FAJUA representative directly, call (850) 681-2003. A FAJUA provider will be able to give you a custom rate based on the coverages you want.
Alternate insurance plans
FAJUA is very costly. Even if you have not been able to find coverage from mainstream insurance companies, there may be others that can insure you at a better price than FAJUA. For example, The General offers cheap policies to high-risk drivers in Florida. Additionally, ensure you've checked high-risk policies through several national companies, such as Geico, Allstate, Nationwide, MetLife, Progressive and State Farm.