Florida Leased Car Insurance Requirements: What the Law Says vs. What Your Lease Says
Florida law asks the same thing of a leased car as any other registered car: $10,000 of personal injury protection (PIP) and $10,000 of property damage liability (PDL). That's it. No bodily injury liability, no collision, no comprehensive.
Your lease asks for a lot more, and there's a reason buried in Chapter 324. Under s. 324.021(9)(b)1, a leasing company that writes a lease of one year or longer, and requires the lessee to carry at least $100,000/$300,000 of bodily injury liability and $50,000 of property damage liability (or $500,000 combined), is not treated as the car's owner for financial responsibility purposes while that insurance is in force. So the higher limits in your lease aren't the state's minimum. They're the leasing company's shield. Add a federal law, the Graves Amendment, and the lessor's position gets stronger still. Yours doesn't.
Source: FLHSMV, Florida insurance requirements; s. 627.733; s. 324.022; s. 324.021(9)(b) (accessed Nov. 14, 2026).
What Florida law requires on a leased car
FLHSMV's rule doesn't care who holds the title. Any vehicle with a current Florida registration must be insured with PIP and PDL when it's registered, at a minimum of $10,000 each (FLHSMV). The owner or registrant has to keep that security in force "continuously throughout the registration or licensing period" (s. 627.733(1)(a)), and s. 324.022 sets the $10,000 property damage requirement for every owner or operator.
A leased car has two parties who could be called the owner: the leasing company on the title, and you, the person driving it every day. Florida's No-Fault Law answers that directly. If a car is the subject of "a security agreement or lease with an option to purchase" and the lessee has the right to possession, the lessee "shall be deemed the owner" for the No-Fault Law (s. 627.732). Chapter 324 has a similar definition for leases "with the right of purchase" and immediate possession (s. 324.021(9)(a)). Check your lease for a purchase option; if it has one, the statutes put the PIP and financial responsibility duties on you.
What the $10,000 of PIP does: it pays 80% of medically necessary care and 60% of lost income, up to $10,000 combined, plus a $5,000 death benefit, for you, your household and passengers regardless of fault (s. 627.736(1)). The PIP 14-day rule explains why the first two weeks after a crash matter. Skip PIP and the penalty is steep: an owner without the required security at the time of an accident has "no immunity from tort liability" and is personally liable for the PIP benefits too (s. 627.733(4)).
PIP is still the law. Both 2026 repeal bills, SB 522 and HB 769, died in committee on March 13, 2026. When I checked the 2027 bill list on November 14, 2026, I didn't find a new auto insurance bill yet; the 2027 session convenes March 2, 2027.
| Coverage | Florida law, any registered car | Lease of 1 year+ that triggers s. 324.021(9)(b)1 |
|---|---|---|
| Personal injury protection (PIP) | $10K | $10K (state law still applies) |
| Property damage liability | $10K | $50K, or $500K combined with BI |
| Bodily injury liability, per person | Not required to register | $100K |
| Bodily injury liability, per crash | Not required to register | $300K |
| If the lessor buys the policy instead | n/a | At least $1 million combined BI + PD |
| Collision / comprehensive | Not required | Not in the statute; set by the lease contract |
Source: FLHSMV; s. 324.022; s. 627.736; s. 324.021(9)(b)1 (accessed Nov. 14, 2026).
The lessor rule in s. 324.021(9)(b)
Section 324.021(9)(b) opens with "Notwithstanding any other provision of the Florida Statutes or existing case law," then limits how far a lessor or lender can be held liable as the car's owner. It does that three different ways, depending on the arrangement.
Leases of one year or longer, (b)1. The lessor "shall not be deemed the owner" for determining financial responsibility for the car's operation or the driver's acts, if the lease requires the lessee to obtain insurance acceptable to the lessor with at least 100/300/50 limits or $500,000 combined. The protection holds "so long as the insurance meeting these requirements is in effect." The insurance can come from either side; if the lessor buys it, the combined limit has to be at least $1 million, and it can be a blanket policy.
Rentals and leases under one year, (b)2. Here the lessor is treated as the owner, but its liability is capped at $100,000 per person, $300,000 per incident for bodily injury and $50,000 for property damage. If the renter or driver is uninsured or carries less than $500,000 combined, the lessor can owe up to an additional $500,000 in economic damages only, reduced by whatever is actually recovered from the driver and the driver's insurance. The Florida rental car insurance post covers that side.
People lending a car, (b)3. A natural person who lends a car to a permissive user gets the same caps as (b)2, including the extra $500,000 economic-damages layer when the borrower is uninsured or under $500,000 combined.
Two things stand out. First, (b)1 doesn't order you to buy 100/300/50. It rewards the lessor for writing that requirement into the lease. Second, the lessor's protection in (b)1 depends on your insurance staying in force. That's why lease contracts care so much about notice of cancellation, which I'll come back to.
(b)2 and (b)3 leave the owner's liability for its own negligence untouched (s. 324.021(9)(b)2–3), and the caps don't apply to a business using vehicles for commercial activity, other than a rental company that rents or leases to the general public (s. 324.021(9)(c)1).
Source: FLHSMV insurance requirements; s. 324.021(7) and (9)(b)1, Florida Statutes (2026); accessed Nov. 14, 2026
Show the numbers
| BI per injured person | |
|---|---|
| Registration | $0 |
| SR-22 | $10K |
| 1-yr+ lease | $100K |
The Graves Amendment
Federal law adds a second layer. Under 49 U.S.C. 30106, known as the Graves Amendment, an owner that rents or leases a vehicle "shall not be liable under the law of any State," by reason of being the owner, for harm arising from the vehicle's use during the rental or lease, if two conditions are met: the owner "is engaged in the trade or business of renting or leasing motor vehicles," and "there is no negligence or criminal wrongdoing on the part of the owner" (49 U.S.C. 30106(a)).
There's a carve-out. The federal law doesn't override state laws "imposing financial responsibility or insurance standards on the owner" for registering and operating a vehicle, or laws making leasing businesses liable for failing to meet state financial responsibility or insurance requirements (30106(b)). How that carve-out lines up with Florida's s. 324.021(9)(b) in a particular lawsuit is a question for an attorney, not an insurance blog.
My read: between the Graves Amendment and Florida's (b)1 rule, the person most exposed when a leased car causes serious injuries is the driver. Which policy pays first is set by s. 627.7263. By default, the lessor's liability insurance and PIP are primary up to the state minimums, unless the lease says otherwise "in at least 10-point type" on its face, using statutory language that makes the lessee's coverage primary. Look for that sentence in your lease. If it's there, your policy is first in line.
Who pays when a leased car causes a crash
This table is a simplified map of the statutes above, not a prediction of how any claim or lawsuit will come out. Facts, policy wording and the courts decide real cases.
| Scenario | Lessee (you) | Leasing company |
|---|---|---|
| You cause a crash; 1-year+ lease requiring 100/300/50; your policy is in force | Your liability policy typically answers first when the lease makes it primary (s. 627.7263); you're personally exposed above its limits | Not deemed the owner for financial responsibility, s. 324.021(9)(b)1; Graves shields a leasing business without negligence or wrongdoing |
| Same crash, but your policy lapsed or limits were cut below the lease amounts | If it lapsed, no insurer defends you, and without PIP you lose tort immunity, s. 627.733(4); under typical lease terms, either one can be a default | (b)1 applies only while the required insurance is in effect; Graves still applies if its conditions are met |
| The leasing company itself was negligent or committed a crime | Your own fault, if any, is still yours | Graves doesn't protect negligence or criminal wrongdoing, 49 U.S.C. 30106(a)(2) |
| Short-term rental or lease under 1 year | Your policy and the rental agreement decide who pays first, s. 627.7263 | Deemed owner up to 100/300/50, plus up to $500K economic damages if you carry under $500K combined, s. 324.021(9)(b)2 |
| You lend the leased car to a friend who crashes | Your policy's permissive-driver wording matters; if you're deemed the owner, (b)3 caps a natural person's liability as lender | Same analysis as row 1 or 2, depending on whether the required insurance was in force |
Source: s. 324.021(9); s. 627.733; s. 627.7263; 49 U.S.C. 30106 (accessed Nov. 14, 2026).
If you have a house, savings or wages someone could go after, 100/300 can run out fast in a bad crash. Some lessees add an umbrella policy on top. The bodily injury liability post walks through what happens when an injury claim goes past your limits.
What lease contracts typically require
None of what follows is Florida law. These are terms commonly written into lease agreements, and yours may differ. Federal Regulation M makes the lessor tell you: a consumer lease has to identify the insurance in connection with the lease, including "the types and amounts of coverage required of the lessee" if you buy it yourself, or the coverage and cost if it's provided through the lessor (12 CFR 1013.4(o)). Florida's DFS gives the same advice in plainer words: "carefully review the lease agreement to identify any additional requirements that are part of the contract between you and the lessor" (DFS Automobile Insurance Toolkit).
Items that commonly show up in a lease's insurance section:
- Liability limits at or above the s. 324.021(9)(b)1 amounts, 100/300/50 or a $500,000 combined single limit.
- Collision and comprehensive for the whole lease. Collision pays to repair your car after it hits something; comprehensive covers fire, theft, windstorm, vandalism, flood, falling objects and hitting an animal (DFS). In Florida, flood and windstorm make comprehensive a big deal.
- A maximum deductible on those two coverages.
- The lessor named on your policy, typically as additional insured on the liability side and loss payee on the physical damage side, so it gets paid on a total loss and gets notice if the policy changes or cancels.
DFS describes the same mechanics for financed cars: most loan agreements require comprehensive and collision and list the lender as loss payee, which "guarantees that the lender will receive notification anytime the policy is changed or is pending termination." Lenders can limit your deductible, but "they cannot require you to purchase insurance from them or a particular insurance company or agent" (DFS Toolkit). DFS also warns that when a borrower doesn't keep the required coverage, the lender buys force-placed insurance, you have "no protection or rights for recovery" under it, and it typically doesn't satisfy Florida's Financial Responsibility Law. Leases have their own default clauses; read yours for what the lessor can do if your coverage lapses.
Florida's lease disclosure law, Chapter 521, applies to consumer leases longer than 4 months. It requires a bold block on the lease that says "THIS IS A LEASE AGREEMENT. THIS IS NOT A PURCHASE AGREEMENT," and it lists "insurance charges" and "charges for guaranteed auto protection or GAP coverage" among things that can be rolled into the capitalized cost (ss. 521.003-521.004). If GAP is in your cap cost, you're already paying for it over the lease.
Total loss and gap coverage
A car is a total loss in Florida when the insurer pays the owner to replace it with one of like kind and quality, or pays after a theft (s. 319.30(3)(a)). The total loss threshold post covers how that decision gets made. On a leased car, the leasing company is typically the loss payee, so the check goes to it, and your lease's early-termination terms decide what happens next.
The problem is the number. DFS: an insurer "is only responsible for paying the Actual Cash Value (ACV) of your vehicle at the time of loss," and ACV is "the cost to replace less depreciation." Newer cars can owe more than ACV, and DFS suggests asking your lender about a "GAP" policy that would pay off the loan if the car is totaled; the Toolkit's advice is written for financed cars (DFS Toolkit). Florida's claims law says a cash ACV settlement is based on the cost of a comparable vehicle, including sales tax if applicable, and any depreciation deduction has to be itemized in dollars (s. 626.9743(5)-(6)).
Gap coverage, whether sold as an insurance endorsement or as a waiver built into the lease, generally covers the difference between the ACV payment and what you owe under the lease. What it leaves out varies by product. Some exclude your deductible, and the DFS description assumes the account is paid current. Read the actual terms before you assume you're covered.
| Hypothetical leased-car total loss | No gap | Gap excludes deductible | Gap includes deductible |
|---|---|---|---|
| Lessor's early-termination payoff | $34,000 | $34,000 | $34,000 |
| Insurer's actual cash value | $29,500 | $29,500 | $29,500 |
| Minus collision deductible | −$1,000 | −$1,000 | −$1,000 |
| Insurance paid to lessor | $28,500 | $28,500 | $28,500 |
| Shortfall after insurance | $5,500 | $5,500 | $5,500 |
| Paid by gap | $0 | $4,500 | $5,500 |
| Left for you to pay | $5,500 | $1,000 | $0 |
Source: DFS Automobile Insurance Toolkit (ACV and GAP); s. 626.9743; hypothetical figures; calculation by Maru Insurance (accessed Nov. 14, 2026).
Walk through it. Say the lessor's payoff on the day of the crash is $34,000. The insurer values the car at $29,500 and subtracts your $1,000 deductible, so $28,500 goes to the lessor. That leaves $5,500. With no gap coverage, that balance can land on you under the lease's terms. A gap product that covers ACV-to-payoff but not the deductible pays $4,500 and leaves you $1,000. Real payoffs also depend on early-termination terms, taxes and fees in your particular lease.
What to check on the lease and the declarations page
Put the lease's insurance section next to your declarations page and go line by line. It takes ten minutes and it's the only way to know you match.
| Check | Where to look | Why it matters |
|---|---|---|
| PIP $10,000 and PDL $10,000 on the leased car | Declarations page | Florida's legal minimum; required continuously while registered |
| BI limits match or beat the lease (the (b)1 floor is 100/300) | Lease insurance section vs. declarations page | Lessor's s. 324.021(9)(b)1 protection depends on it; so does your lease compliance |
| Property damage at least what the lease says (the (b)1 floor is $50,000) | Same | Ties to the same (b)1 amounts |
| Collision and comprehensive both listed | Declarations page, physical damage section | Leases typically require both; they pay on a total loss |
| Deductibles at or under the lease cap | Lease vs. declarations page | Over the cap can be a lease default |
| Leasing company named as additional insured and loss payee | Declarations page or endorsements | Lessor gets paid and gets notice of changes |
| Is the lessee's insurance primary? | Lease, 10-point type statement | Without it, s. 627.7263 makes the lessor's coverage primary |
| Gap: included in the lease, on your policy, or neither? | Lease cap cost itemization; endorsements | Decides who covers the shortfall on a total loss |
| Purchase option in the lease | Lease | Affects whether you're deemed the owner under ss. 324.021(9)(a), 627.732 |
Source: s. 324.021(9); s. 627.7263; s. 627.732; 12 CFR 1013.4(o); DFS Automobile Insurance Toolkit (accessed Nov. 14, 2026).
A few more practical points. If you change insurers mid-lease, send the lessor proof of the new policy before the old one ends. Don't drop coverage on a leased car you've parked; Florida wants PIP and PDL as long as it's registered. And when the lease ends, keep the policy until the car is turned in and the paperwork is done. The Florida car insurance requirements guide has the full list of state minimums and what happens if they lapse.
Our Florida auto insurance page explains the coverages, and if you'd like a second pair of eyes on your lease's insurance section against your declarations page, get in touch.
FAQ
What insurance is required on a leased car in Florida?
Florida law requires the same as any registered car: $10,000 of PIP and $10,000 of property damage liability. Lease contracts typically require much more, such as 100/300/50 liability, collision and comprehensive.
Why do leasing companies require 100/300/50 in Florida?
Under s. 324.021(9)(b)1, a lessor whose lease of one year or longer requires at least $100,000/$300,000 bodily injury and $50,000 property damage liability (or $500,000 combined) is not deemed the owner for financial responsibility purposes while that insurance is in effect.
Is gap insurance required on a leased car in Florida?
Florida law doesn't require it. Some leases include gap coverage in the capitalized cost, and some leases or lessors require it. Check your lease and your policy endorsements.
Can a leasing company be sued if a lessee causes a crash in Florida?
The Graves Amendment, 49 U.S.C. 30106, generally shields a leasing business from liability just for owning the car, unless the company was negligent or committed criminal wrongdoing. Florida's s. 324.021(9)(b) also limits lessor liability. Specific lawsuits are a question for an attorney.
This is general information about Florida and federal law. Your policy wording, your lease agreement and the law control. Confirm your own situation with a licensed agent or the Florida Office of Insurance Regulation, and for questions about liability in a lawsuit, talk to an attorney.
Sources
- FLHSMV: Florida insurance requirements
- Florida DFS: Personal automobile insurance overview
- Florida DFS: Automobile Insurance Toolkit (PDF)
- s. 319.30, Florida Statutes: total loss definition
- s. 324.021, Florida Statutes: definitions, owner/lessor liability
- s. 324.022, Florida Statutes: property damage liability
- s. 626.9743, Florida Statutes: auto claim settlement
- s. 627.7263, Florida Statutes: rental and leasing insurance primary
- s. 627.732, Florida Statutes: No-Fault Law definitions
- s. 627.733, Florida Statutes: required PIP security
- s. 627.736, Florida Statutes: PIP benefits
- Chapter 521, Florida Statutes: Motor Vehicle Lease Disclosure
- 49 U.S.C. 30106 (Graves Amendment), U.S. Government Publishing Office
- 12 CFR 1013.4 (Regulation M), eCFR
- Florida Senate: SB 522 (2026)
- Florida Senate: HB 769 (2026)
- Florida Senate: 2027 bill list
This article is for general educational purposes only and is not legal, tax or insurance advice. Coverage depends on the actual policy, its terms, conditions and exclusions, and state law. Maru Insurance · WA License (WAOIC) #1365574 · FL License #G363233 · NPN 22261820.