Personal Injury Protection (PIP) Insurance: Your Foundation

When it comes to insuring a car in Florida, Personal Injury Protection (PIP) insurance is where you need to start. This coverage is mandatory and provides medical expenses and lost wage benefits for you, your family members, and your passengers, regardless of who was at fault. In an effort to prevent delays in medical care for those injured in car accidents, Florida law requires that each driver’s own insurance pay for medical expenses for themselves and their passengers from PIP insurance first, regardless of who is found to be at fault for the accident. It's like having your own medical safety net, ensuring you get the care you need without worrying about immediate costs.

The No-Fault law requires that Florida drivers carry $10,000 in PIP insurance coverage. This generally pays for 80% of medical expenses related to the accident, up to a total of $10,000. It can also pay for up to 60% of lost wages up to $10,000 (though the total coverage, whether paid for medical expenses or lost wages, or some combination of the two, is $10,000). There is also a $5000 death benefit for a fatality. 

Of course, if you’re familiar with the constantly rising cost of healthcare, you know that $10,000 may not go very far in the event of a serious injury. PIP is the legal minimum you have to carry to drive, but that doesn’t mean you should stop there.

Property Damage Liability (PDL) Insurance: Your Responsibility Cushion

Another requirement for drivers in Florida is Property Damage Liability (PDL) insurance. This is insurance that pays for damage you do to someone else’s property in an accident. As with PIP, you’re required to carry at least $10,000 in PDL insurance to be legally covered in the state of Florida. 

If you’ve ever bumped into someone else’s car, even very minimally, you may have immediately experienced a guilty feeling. Your car is important to you, so you know other people’s cars are important to them, and you’ll want to make it right. PDL insurance covers damage to the other driver’s vehicle, loss of items inside the vehicle at the time of the accident, and the costs of alternate transportation while the vehicle is repaired.

PDL functions as a cushion against hefty property damage claims that you may be responsible for, hopefully ensuring you don't have to dip into your savings to pay for someone else's car repairs. However, in a serious accident, the $10,000 minimum still may not be enough to completely protect you.

Bodily Injury Liability (BIL) Insurance: Your Liability Shield

Now you know how claims against you for damage to another person’s property are covered, but what if the other driver or a passenger in their car is injured and you’re responsible? While Florida doesn't make it mandatory, having Bodily Injury Liability (BIL) insurance is a smart move. 

Remember, despite the fact that the other driver should also have PIP insurance to cover their medical bills, $10,000 doesn’t go very far in healthcare, and anything that’s not covered could be your responsibility if you’re at fault. BIL insurance steps in to protect you from personal injury claims and helps with legal defense costs and settlements. It’s like having a guardian angel by your side, safeguarding your personal assets.

Uninsured/Underinsured Motorist (UM/UIM) Coverage: Your Safety Net

What happens when someone hits you, but they don’t have insurance to cover their responsibility for the damages? If they don’t have insurance or don’t have enough insurance, it may be possible to pursue a personal injury claim against them – but what if they don’t have that kind of money? A judgment that’s in collections doesn’t help you pay for repairs or medical bills.

It’s a real worry in Florida. According to the Insurance Information Institute, over 20% of Florida drivers were uninsured in 2019, ranking them 6th in the list of the 10 states with the highest percentage of uninsured motorists. That’s where Uninsured/Underinsured Motorist (UM/UIM) coverage comes in. You don’t have to carry it, but in a case like this, it can be a real lifesaver, covering your expenses if the at-fault driver is uninsured or underinsured. You won't have to bear the burden of someone else's negligence.

UM can be stacked or non-stacked. Stacked UM insurance is for when you have more than one car. UM policies on each car can be stacked so in the event of an accident in one vehicle, all the coverage for your household’s vehicle will be available. With non-stacked coverage, you only have access to the policy covering the insured vehicle.

Collision Coverage: Your Vehicle’s Accident Insurance

You’re required to carry coverage that fixes the other driver’s vehicle if you’re at fault, and their insurance – or your UM/UIM insurance – should cover your vehicle if they’re at fault. But how is your vehicle covered if you’re the one at fault?

It’s not mandatory, but Collision Coverage is the insurance that can keep you from draining your bank account when you caused the accident. It happens sometimes – no one is perfect. With Collision Coverage, when oops moments happen, you’ll have your insurance to fall back on for car repairs.

Comprehensive Coverage: Your Protection Beyond Collisions

Car accidents seem like enough to think about by themselves. But life's unpredictable, and so are the mishaps that can befall your car even when you’re not behind the wheel. 

Comprehensive Coverage goes beyond collisions, shielding your beloved vehicle from non-collision-related incidents like theft, vandalism, natural disasters, and animal encounters. If you want to stay prepared for any kind of unexpected damage, this coverage is for you.

Conclusion

As a Florida driver, you have several auto insurance coverage options to choose from to protect yourself and your loved ones after a car accident. Understanding the basics of Personal Injury Protection (PIP), Property Damage Liability (PDL), Bodily Injury Liability (BIL), Uninsured/Underinsured Motorist (UM/UIM), Collision, and Comprehensive coverage empowers you to make informed decisions.

Remember, auto insurance is a complex topic, and it's essential to have the right coverage for your specific needs. If you have any questions or concerns about your auto insurance, don't hesitate to consult with a qualified personal injury attorney.

Sources

• https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists

"The information provided herein is simply a brief overview of the Florida law on this particular matter. It should not be relied upon for legal purposes, as the facts and circumstances to any specific legal matter may vary substantially from the limited explanation and application of often complicated legal rules and principles that may be addressed herein, or applicable in your particular legal matter. You should only rely upon legal advice provided to you by a licensed attorney who has had an opportunity to fully evaluate your particular legal matter".