An Introduction to FAJUA
March 3, 2014
Everyone needs insurance in order to protect themselves from the unthinkable. When the worst happens, insurance is there to give us a second chance. But not everyone can afford insurance and often it’s because they’re considered “high risk.” By this we mean that their personal history leads many insurers to believe they would be a financial loss if they provided them with insurance. Fortunately, in Florida, these people are not out of luck. Keep reading to learn how FAJUA can give them the insurance they need.
What is FAJUA?
Put simply, FAJUA is the last hope for those people who are otherwise uninsurable for auto insurance. It stands for the Florida Automobile Joint Underwriting Association. This entity was created pursuant to sections 627.351 and 627.311 or the Florida Statutes, by the order of the Insurance Commissioner. It was made official back on February 9th, 1973.
Why Is It Necessary?
Many people wonder if the Florida Automobile Joint Underwriting Association is really necessary. After all, if people are such unreliable drivers that huge insurance companies won’t insure them, why should anyone? Are they even worth having on the road?
There are many arguments to this and it’s certainly still a contentious issue. One reason people would say the Florida Automobile Joint Underwriting Association is important is because people still need to get around, especially if they’re going to be full-fledged, productive members of society. Without a car, many people wouldn’t be able to get to work.
However, as we’ll cover next, insurance from the Florida Automobile Joint Underwriting Association is also very expensive making it more likely that people with bad records will shape up.
How Does the FAJUA Work?
Insurance through this association is only given to those who can prove they can’t get it anywhere else. Although this insurance is pricey, it’s not overly so. Thus, the association wants to discourage people from taking advantage of the system if they could simply buy insurance elsewhere.
In fact, trying to get insurance through this ruse is a very serious matter. Section 817.234 of Florida’s state statues recognizes such a crime as a third degree felony. That’s definitely not worth some cut-rate insurance.
When it’s established that someone qualifies, they will need to get insurance through a provider that is registered with the Florida Automobile Joint Underwriting Association. That’s because the association itself doesn’t actually provide the insurance. They simply subsidize another carrier. However, not all insurance companies in Florida partake in the program, so it’s essential that a potential policy holder speaks with the association first to know what their options are.
If you’re in need of insurance in Florida but can’t seem to find a willing provider, you might feel as though you’re lost without a hope. But that’s certainly not the case. The Florida Automobile Joint Underwriting Association was created to help you. Contact FAJUA today and they’ll begin the process of getting you the insurance you need. Whatever you do, don’t drive around without auto insurance because you think you’re without options.