Unfortunately, Florida has one of the highest rates of uninsured motorists. According to the Insurance Information Institute, 20.6 percent of Florida motorists in one recent year did not have auto insurance. Furthermore, Florida only mandates drivers to carry property damage liability insurance, but not bodily injury liability coverage. As a result, many drivers who cause accidents in Florida qualify as uninsured or underinsured motorists. Fortunately, drivers can protect themselves by purchasing uninsured/underinsured (UM/UIM) coverage. But does Florida law require drivers to have UM/UIM coverage, and should you get it even if the law doesn’t require you to?
Florida’s UM/UIM Laws
Florida does not mandate drivers to purchase UM/UIM coverage. However, state law requires insurers to offer it to vehicle owners when they buy a policy. Car owners can decline UM/UIM coverage in writing and reduce their monthly premiums.
In contrast, Florida requires drivers to have at least $10,000 in personal injury protection coverage and $10,000 in property damage liability coverage. Personal injury protection coverage provides partial reimbursement of medical expenses and lost wages for car accident injuries, regardless of fault for the crash. Property damage liability coverage compensates other parties for property damage caused by the insured driver in an accident.
What UM/UIM Insurance Covers
UM/UIM insurance coverage triggers when an at-fault driver does not have mandated liability coverage or when their liability coverage cannot pay for all the expenses that an accident victim can recover from the driver. UM coverage also applies in hit-and-run accidents, as insurers treat unidentified hit-and-run drivers like uninsured drivers. UM/UIM insurance can provide compensation for losses such as:
- Medical expenses that exceed PIP limits
- Unreimbursed lost wages
- Lost future earning capacity
- Unreimbursed property damage repair costs or reimbursement for the value of a totaled vehicle
- Pain and suffering (if an accident victim’s injuries exceed the verbal threshold)
Why You Need UM/UIM Coverage in Florida
Drivers can protect themselves from the financial consequences of a car accident, even ones they do not cause, by purchasing UM/UIM coverage. Many drivers in Florida do not have the liability insurance required by state law. Furthermore, drivers who do have insurance only carry the minimum required coverage. Furthermore, basic PIP policies only provide $10,000 for medical expenses and lost wages (although car owners can purchase higher PIP limits). As a result, UM/UIM can provide an additional source of compensation when an at-fault driver has no insurance or inadequate coverage and lacks the financial resources to pay a court judgment.
The Cost-Benefit Analysis
Vehicle owners should weigh the benefits and costs of UM/UIM coverage when purchasing auto insurance policies. With many insurance providers, the additional premium for UM/UIM coverage can seem negligible compared to the potential out-of-pocket expenses a driver might incur from an accident caused by an uninsured or underinsured motorist. However, insurers may require policyholders to purchase bodily injury liability coverage with identical limits before they can purchase UM/UIM coverage. UM/UIM coverage can also provide injured parties with an alternative to costly and time-consuming litigation against an at-fault uninsured or underinsured motorist. Finally, UM/UIM insurance can offer peace of mind knowing you’ve protected yourself from other drivers who may not exercise the same level of caution as you.
Contact a Car Accident Attorney Today
When you’ve gotten hurt in a car crash caused by a motorist who does not have liability insurance or whose coverage doesn’t compensate you for all your losses, UM/UIM coverage can provide you with a critical legal option. Contact Hutch Firm today for a free, no-obligation consultation with a car accident lawyer to learn more about the benefits of having UM/UIM coverage and how it can help you maximize your financial recovery if you suffer injuries and property damage in a car accident in Florida caused by another driver.