I Have Full Coverage Auto Insurance – Not So Fast
I Have Full Coverage Auto Insurance – Not So Fast
According to the National Safety Council (NSC) the average comprehensive cost of a fatal car accident is $4.1 million dollars, the cost of an incapacitating car accident injury is $208,500 and a non-incapacitating car accident injury will cost $53,200. These numbers include medical expenses, lost wages and property damage
Now, take a look at your auto insurance policy. How does your auto insurance policy compare to the costs above? Will your auto insurance policy cover these expenses? If it does, consider yourself one of the few.
Our lawyers have seen far too many seriously injured car accident victims, who are facing very large medical bills, are unable to return to work and have a totaled vehicle. Despite believing that they have “full coverage” auto insurance, they only have the Florida required minimum in coverage. Making matters worse, many times the driver that caused the damage is either uninsured or has the same bare minimum insurance policy. This scenario can easily leave innocent victims destitute and without the medical care required to return their lives to an acceptable standard of living.
Not every driver in Florida has insurance or enough insurance to protect you should they harm you or damage your property. Not every driver that may seriously harm you in an auto accident has the assets to be worthy of filing a lawsuit. That’s the cold and hard reality of auto accident related injury claims in Florida.
Our law firm is not in the business of generating revenue for insurance companies. At the same time, it is imperative for every driver to understand the nuances of Florida auto insurance so as to better protect themselves and their families.
The remainder of this article will describe each of the primary auto insurance options available in Florida and how each can help protect you. If it helps, print them out and take them to your auto insurance agent for discussion purposes. As always, if you have questions you can contact me directly.
What Auto Insurance is Required by Florida Law?
Under most circumstances, Florida only requires drivers to carry $10,000 in Personal Injury Protection (PIP) and $10,000 in Property Damage Liability (PDL).
Personal Injury Protection (PIP) – Required
| What PIP Pays For | What PIP Doesn’t Pay For | ||
|---|---|---|---|
| 80% of your medical expenses* 60% of your lost wages* $5,000 death benefit |
Your car repairs or car replacement Injuries you may cause to someone else Property damage you may cause to someone else |
||
| * – Regardless of who is at-fault AND up to your PIP policy limits | |||
Notes: This is your first line of protection for medical treatment expenses and lost wages related to an auto accident.
Medical Payments (MEDPAY) Insurance – Optional
| What MEDPAY Pays For | What MEDPAY Doesn’t Pay For | ||
|---|---|---|---|
| 100% of your medical expenses* | Your lost wages Your car repairs or car replacement Injuries you may cause to someone else Property damage you may cause to someone else |
||
| * – Regardless of who was at-fault AND up to your MEDPAY policy limits * – You may be required to reimburse MEDPAY expenses |
|||
Property Damage Liability (PDL) – Required
| What PDL Pays For | What PDL Doesn’t Pay For | ||
|---|---|---|---|
| Property damage you may cause to someone else, such as a building, car, telephone pole, etc…* |
Your car repairs or car replacement Your medical bills or lost wages Injuries you may cause to someone else |
||
| * – If you’re at-fault or sometimes even partially at-fault AND up to your PDL policy limits | |||
Collision Insurance – Optional by Law and Usually Required by Banks or Lenders
| What Collision Pays For | What Collision Doesn’t Pay For | ||
|---|---|---|---|
| Your auto accident related car repair or car replacement* |
Your medical bills or lost wages Injuries you may cause to someone else Property damage you may cause to someone else |
||
| * – Regardless of who was at-fault AND up to your Collision policy limits | |||
Comprehensive Coverage – Optional by Law and Usually Required by Banks or Lenders
| What Comprehensive Pays For | What Comprehensive Doesn’t Pay For | ||
|---|---|---|---|
| Your car repair or car replacement from theft, vandalism, fire, wind, rain, flooding, falling objects* |
Your injuries or lost wages Your auto accident related car repairs or replacement Injuries you may cause to someone else Property damage you may cause to someone else |
||
| * – Not auto accident related AND up to your Comprehensive policy limits | |||
Bodily Injury Liability (BI) Coverage – Usually Optional. Required after DUI Conviction
| What BI Pays For | What BI Doesn’t Pay For | ||
|---|---|---|---|
| Injuries you may cause to someone else* Your legal defense if you are sued by the other party. |
Your medical bills or lost wages Your car repairs or car replacement Property damage you may cause to someone else |
||
| * – If you’re at-fault or sometimes even partially at-fault AND up to your BI policy limits | |||
Uninsured / Underinsured Motorist (UM) Coverage – Optional
***UM COVERAGE – OUR OPINION – THE MOST IMPORTANT INSURANCE YOU CAN PURCHASE***
| What UM Pays For | What UM Doesn’t Pay For | ||
|---|---|---|---|
| Your medical expenses* Funeral expenses* Your lost wages* Your pain and suffering* |
Your injuries or lost wages if you’re at-fault Your car repairs or car replacement Injuries you may cause to someone else Property damage you may cause to someone else |
||
| * – If you’re not at-fault or sometimes even only partially at fault AND up to your UM policy limits | |||
Notes: Given the number of uninsured or underinsured motorists in Florida, UM coverage can offer critical protection to you and your family. My recommendation is to buy as much UM coverage as you can reasonably afford.
Stacking your UM coverage will also increase the limits of your UM policy, in addition to other benefits it offers. In fact, under most policies, stacking UM coverage will cover you even if you are a motorcyclist, bicyclist, runner or pedestrian when another vehicle causes injury to you. We highly recommend stacking your UM coverage even if you only have one vehicle especially if you are often on the road as a pedestrian, runner, bicyclist or motorcyclist.
What’s the bottom line? Talk to your agent, understand the various insurance coverages available to you and purchase as much of that insurance as you can reasonably afford.