Miami Drivers: Can an Insurance Company Suspend Your License?
December 5, 2025 | Sagi Shaked | Car Accidents
If you drive in Miami, you already know how important it is to maintain active auto insurance. However, what happens if your insurance lapses or you’re involved in a car accident and your coverage is disputed?
Many Florida drivers wonder whether an insurance company has the power to suspend their license. The short answer is no, an insurance company itself cannot directly suspend your driver’s license.
However, its actions can lead to a suspension if certain reports are sent to the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). Learning about how this works can help you avoid serious penalties.
Who Can Suspend Your License in Florida?
Only the FLHSMV has the legal authority to suspend a driver’s license in Florida. Still, the agency often relies on information provided by insurance companies to make that decision.
Common situations that can lead to suspension include:
- Letting your car insurance policy lapse
- Failing to maintain the state’s minimum required coverage
- Being involved in a crash while uninsured
- Not paying damages or judgments from an accident
When any of these occur, your insurance company must report the lapse to the state. Once that report is filed, the FLHSMV can issue a notice of suspension unless you provide proof of insurance or payment within a short period of time.
Minimum Auto Insurance Requirements in Florida
Florida law requires all vehicle owners to maintain the following coverage at all times:
- Personal Injury Protection (PIP): Minimum of $10,000
- Property Damage Liability (PDL): Minimum of $10,000
You must carry this coverage continuously, even if you don’t drive your car every day. If your policy is canceled or expires and you don’t replace it immediately, your license could be suspended.
Once that happens, you’ll generally have to pay a reinstatement fee and show proof of new coverage before you can legally drive again.
What Happens After an Uninsured Accident
If you’re involved in an accident and don’t have valid insurance, the other driver or their insurance company can pursue compensation from you directly. If you can’t pay for the damages, the injured party can obtain a civil judgment against you in court.
If you fail to satisfy that judgment, the FLHSMV may suspend your license until you pay the full amount or set up an installment plan. This process is separate from criminal penalties and is handled through Florida’s Financial Responsibility Law.
Can an Insurance Company Trigger a Suspension by Mistake?
Yes, it’s not impossible. Insurance companies are legally required to report cancellations or lapses, but errors do occur. For example, a missed payment, an automatic renewal issue, or an administrative error could cause your coverage to appear canceled when it’s not.
If you receive a suspension notice you believe is wrong, contact your insurance company and the FLHSMV immediately. You may need to provide proof of continuous coverage (such as a policy declaration page) to clear up the matter before your license is officially suspended.
Contact a Miami Car Accident Lawyer for Legal Help
While an insurance company can’t directly suspend your license, its actions can lead to one if your coverage lapses or if a dispute arises after a crash. You should act quickly in these circumstances to avoid fines and the loss of your driving privileges.
A qualified personal injury lawyer may be able to explain your legal options and advise you on your best course of action, depending on the facts of your case. Schedule a free consultation today to learn how to protect your license under Florida law.
If you’ve been injured in an accident in Miami or Aventura, FL, and need legal help, contact our personal injury lawyers at Shaked Law Personal Injury Lawyers to schedule a free consultation.
Shaked Law Personal Injury Lawyers
20900 NE 30th Ave Suite 715 Aventura, FL 33180
(305) 937-0191
Open 24 hours
