The State of Florida now requires FR-44 insurance policies to be non-cancelable. This means that when an FR-44 policy is written is cannot be canceled. The State of Florida did this because they want to make sure that if they are going to issue you a drivers license, your insurance policy will not cancel. This forced insurance companies to start requiring that FR-44 policyholders pay in full. In most cases insurance carriers have six month policy terms. This means that you would be required to pay the first six months of your FR-44 insurance in full. When your first six months is up you will also get a renewal package in the mail that is required to be paid in full. This also means that many insurance companies will not let you make changes or endorsements to your FR-44 policy because a change may result in a “premium increase” and if not paid the policy could cancel. The best time to make changes to your FR-44 policy is upon renewal. This is a Florida State law and any company that is allowing a policyholder to make monthly payments on an FR-44 policy is not in compliance. If they are letting you make payments then the policy in more than likely not “non-cancelable” and you are not in compliance with your FR-44 requirement. We always urge our clients to be wary of insurance companies that are offering a payment plan for FR-44 insurance. It is always important to do your research before you purchase insurance and if they are offering you a payment plan in may be a scam. For most individuals it may be hard to come up with enough money to pay the policy in full but if you shop around it may be possible. The best course of action is to obtain a quote from multiple insurance companies and find a rate that you are able to pay. You may also be able to adjust your pip deductible to reduce the rate. If you do not have a loan on the vehicle you may be able to increase your comprehensive and collision deductibles or reject the coverage altogether. The State of Florida is only concerned with your liability of bodily injury and property damage to others, they are not concerned with damage to your vehicle. Please feel free to give our office a call if you have any questions.
