There has been a massive shift in car insurance in Florida that most people do not realize. It has changed for the worse. It is more expensive than ever and that has changed how people are buying insurance.
As Florida car accident lawyers, we see these changes in insurance every day. We see that people who used to carry both bodily injury (BI) and Uninsured Motorist (UM) coverage, now carry less or have cut them altogether.
The reality is that many of our car accident clients find themselves not being able to afford both BI and UM. The same goes for the people who cause accidents. This means that in approximately 25-33% of all our accident cases, there is no insurance to go after! These are scary numbers. The purpose of this article is to explain how insurance works in Florida and why you need to check your policy.
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The Statistics of Uninsured Motorist (UM) Insurance in Florida
Florida has one of the highest rates of uninsured drivers in the country. Recent studies show that 1 in 5 Florida drivers lack proper insurance coverage. We believe that this number is getting even higher. The reason why we see a greater number of uninsured drivers is because they are higher risk and more likely to be the cause of auto accidents.
This is a serious problem for Florida drivers. If you’re involved in an accident with an uninsured driver, you could be stuck with damages without any way to get compensation- unless you protect yourself.
That’s why Uninsured Motorist (UM) insurance is so important. This coverage kicks in when the at fault driver doesn’t have insurance or doesn’t have enough insurance to cover your injuries.
In Florida, Only PIP and Property Damage is Required-But That Doesn’t Mean It is a Good Idea
In Florida, you are only legally required to carry Personal Injury Protection (PIP) and property damage of $10,000. That’s it. Many people can only afford these minimums in order to insure their vehicle and keep driving. But, that does not mean that carrying only PIP and Property damage is a good idea. In fact, it is a huge risk if you get into a car accident.
Full Coverage Doesn’t Mean What You Think
It’s important to note that having full coverage car insurance in Florida doesn’t necessarily mean you are fully protected from all potential risks on the road. All “Full Coverage” really means is that you carry the Florida minimums of PIP and property damage. If someone tells you that you have “Full Coverage” it really means nothing. You MUST check your policy and see if you carry BI and UM.
I Have Full Coverage But Don’t Know If I Have UM
We hear our clients tell us that they have full coverage, so they assume that they have every coverage offered. Normally, when our clients tell us that they don’t know if they carry UM insurance, it is because they were told they have Full Coverage and think they have it. They don’t realize that UM is an “Add On” and you must ask for it. Most likely, if you don’t know if you have UM, you probably don’t have it.
You Have to Carry BI in Order to Get UM
In order to buy UM coverage, the insurance companies require you to carry the same or greater amount of BI. It is not a bad thing to carry BI because it protects you- just understand that you will have to buy both BI and UM coverages.
Understanding Uninsured Motorist (UM) Insurance in Florida
Uninsured Motorist (UM) insurance kicks in when you’re hit by a driver who either lacks BI insurance or doesn’t carry enough BI insurance to pay for all your damages. This is why UM can mean both Uninsured Motorist or Underinsured Motorist coverage. Some people refer to underinsured motorist as UIM. There is no difference between the two in Florida. In other words, you don’t have to buy two types of UM coverages.
How UM Coverage Works
UM coverage in Florida mirrors your bodily injury liability limits. If you select $100,000 per person and $300,000 per accident in bodily liability coverage, your UM protection matches these amounts. This coverage extends beyond being in your vehicle – it protects you while walking, cycling, or riding in someone else’s car.
What UM Insurance Covers
Here’s what UM insurance covers:
- Medical expenses
- Lost wages
- Pain and suffering
- Long-term disability costs
- Death benefits
The Difference Between UM and UIM
You don’t have to buy UM and UIM. They are the same thing, but they kick it at different times. The key difference between UM and UIM lies in the coverage trigger:
- UM activates when the at-fault driver has no insurance
- UIM kicks in when the at-fault driver has insurance, just not enough to cover your damages
Stacking UM Coverage
Florida law lets you stack UM coverage across multiple vehicles, multiplying your protection. This option proves valuable when dealing with severe injuries that exceed basic coverage limits. We recommend this. Our lawyers all stack their coverage because it is cheaper and allows for more protection. You can ask your insurance agent about options.
The High Risk of Uninsured and Underinsured Drivers in Florida
Florida has one of the highest rates of uninsured drivers in the country. According to recent studies by the Insurance Research Council, approximately 20% of Florida drivers do not have proper insurance coverage. This means that 1 in 5 drivers on the road are putting others at risk.
The national average for uninsured drivers is around 12%, which means Florida’s rate is nearly double the U.S. average. These statistics are concerning for responsible drivers in the Sunshine State.
The Financial Impact of an Accident with an Uninsured Driver
The financial consequences of being involved in an accident with an uninsured driver can be devastating. Here are some potential costs you may face:
- Medical bills that can reach hundreds of thousands of dollars
- Lost wages during your recovery period
- Costs for repairing or replacing your vehicle
- Long-term expenses for rehabilitation
- Property damage expenses
The Importance of Protecting Yourself Against Uninsured Motorists
A collision with an uninsured or underinsured driver can leave you with major out-of-pocket costs. Many only realize too late that the at-fault driver’s minimal or nonexistent coverage leads to mounting bills and financial strain.
As experienced Florida car accident attorneys, we’ve seen victims face serious financial burdens after accidents with uninsured drivers. This underscores why protecting yourself against uninsured motorists is not just optional, but essential in Florida.
Florida’s No-Fault Insurance System and Its Limitations
Florida has a no-fault insurance system in place, which means that drivers are required to have Personal Injury Protection (PIP) coverage. This coverage must be at least $10,000. The purpose of this system is to make the process of filing claims after a car accident easier and more efficient. Instead of having to prove who was at fault for the accident, injured parties can simply go through their own insurance company for compensation.
What Does PIP Coverage Include?
PIP coverage includes several benefits for policyholders:
- 80% of medical expenses
- 60% of lost wages
- $5,000 in death benefits
- Essential services like housekeeping
Limitations of PIP Coverage
While PIP coverage can be helpful in many situations, it does have its limitations. These limitations become particularly evident when serious injuries occur.
Coverage Cap
One major limitation is the coverage cap of $10,000. In many cases, this amount may not be enough to fully cover the costs associated with medical treatment and rehabilitation for severe injuries. As a result, accident victims may find themselves facing significant out-of-pocket expenses.
Exclusion of Non-Economic Damages
Another drawback of PIP coverage is that it does not provide compensation for non-economic damages such as pain and suffering.
How UM Insurance Protects You Beyond PIP Coverage
UM insurance steps in when PIP coverage is paid out, providing essential financial protection for Florida drivers. Your medical bills from an accident can quickly exceed PIP’s $10,000 limit, leaving you responsible for thousands in expenses. If you have been to a hospital in Florida, you know how expensive the bill is and how easily the $10,000 of PIP gets used up.
Here’s what UM insurance covers beyond PIP:
- Medical Expenses: All additional healthcare costs after PIP is exhausted
- Lost Income: Up to 100% of your lost wages, unlike PIP’s 60% limit
- Long-term Care: Rehabilitation, nursing care, and ongoing treatments
- Pain and Suffering: Compensation for physical and emotional trauma
- Quality of Life Impact: Loss of enjoyment, disability adjustments
A real-world example: Our client faced $50,000 in medical bills after a hit-and-run accident. Their PIP coverage paid the first $10,000, but UM insurance paid $100,000 and covered the remaining bills, leaving money for our client.
UM coverage becomes your safety net when medical costs exceed PIP limits. It’s the difference between managing your recovery and facing crushing medical debt after a serious accident.
Legal Requirements and Availability of UM Insurance in Florida
Florida law requires insurance companies to offer Uninsured Motorist (UM) coverage when drivers purchase Bodily Injury insurance. Drivers can reject this coverage in writing. We recommend that you do not.
UM insurance can be expensive, but it is worth it. This investment provides protection against financial losses.
UM coverage limits typically match your BL limits. For example, if you carry $100,000 per person/$300,000 per accident in BL coverage, your UM protection can offer the same limits.
Key benefits of UM coverage include:
- Protection for you and your family members
- Coverage when driving or as a passenger
- Benefits that follow you outside your vehicle
- Stackable coverage options for multiple vehicles
Many Florida drivers don’t realize their insurance company must offer UM coverage. This requirement protects drivers from the high number of uninsured motorists on Florida roads.
How Much UM? Contact Us If You Have a Question About What You Need
Not everyone needs or can afford high BI and UM limits. If you can, we recommend that you carry at least 100/300 in both. But, if you are already struggling to pay your car insurance bills, we recommend that you carry BI of 10/20 and UM of 10/20. That at least will afford some minimal protection in case of an accident. You would be surprised what we can do with $10,000 of coverage!
If An Insurance Company Tells You That You Don’t Need UM Because You Have Health Insurance, They Are Lying!
Over the past few years, we have heard that the insurance companies are telling people not to carry UM in order to lower their insurance costs. They are telling their customers that if they have health insurance, they don’t need UM. In fact, one of our lawyer’s parents received an email from a State Farm agent saying this exact thing. It is a lie. Health insurance is very different than UM. Health insurance pays for medical bills. You have to pay co-pays and deductibles. It does not put any money in your pocket. UM puts money in your pocket because not only does it pay for medical bills, it also covers damages like pain and suffering and everything else that you have lost. Don’t be fooled!
Why Insurance Companies Don’t Want you to Carry UM
The Florida car insurance market is trying to push people away from carrying BI and UM insurance. Why? Because they have figured out that they make more money charging people for the bare minimum than having to pay out on BI and UM claims. It is simple math. But, it hurts the people of Florida and makes getting into an accident a gamble about whether anyone has BI or UM to cover damages. It is a terrible system and needs to be changed.
If You Have Been in an Accident, You Know the Importance of Getting UM Coverage
If you have been in a car accident before, you likely know the importance of having UM coverage. We recommend that after your accident you check your policy and buy UM insurance. You would be amazed by the number of our clients who are in subsequent accidents. If you are unlucky and get into another accident, please have UM to protect yourself.
Contact Us for a Free Consultation
Our Florida car accident attorneys have helped many drivers in Florida get the compensation they deserve through UM insurance claims. Our car accident lawyers understand Florida’s insurance laws and work hard to protect our clients’ rights.
Don’t let insurance companies downplay your claim. We offer:
- Free initial consultations to assess your case
- 24/7 availability for urgent legal assistance
- No fees unless we win your case
- Proven track record of successful UM claims
Your rights are important to us. Contact our Florida car accident lawyers today to schedule your free consultation. Let us take care of the legal side while you focus on getting better.
