Insurance Coverage
Understanding Florida Auto Insurance
Personal automobile insurance policies in Florida contain several different types of coverage. Every Florida driver should understand what the different types of auto insurance in Florida are, what they mean, and how they can impact you. This is a summary of the various types of auto insurance common in personal auto policies throughout Florida. For additional information, talk to your insurance agent or the experienced insurance attorneys at the Byrne Law Group.
PIP - Personal Injury Protection, No-Fault
PIP, otherwise known as Personal Injury Protection, is a type of insurance coverage mandated by Florida law. PIP is also known as “no-fault” insurance because it provides payment for the injured parties' own medical expenses and lost wages incurred as a result of an automobile accident, up to $10,000. Since PIP is considered “no-fault” payment is made regardless of who caused the accident. Most PIP policies pay approximately 80% of an injured person’s medical expenses, and typically about 60% of an injured person’s lost wages. And PIP coverage also contains a death benefit.
Medical Payments Coverage
PIP is required by Florida law. Medical payment coverage (sometimes known as “med pay coverage”) is a voluntary insurance coverage that some people may choose to purchase. Medical payment coverage can provide additional PIP benefits (beyond the $10,000 that PIP pays for) to make sure that medical expenses are paid in full up to the extent of the coverage afforded. Medical payments coverage can also provide coverage for certain injury situations that are not included under your basic PIP policy of insurance.
Liability Coverage
Liability coverage means that the insurance company will cover and defend the Insured (the person covered by the insurance policy) against any claims for legal liability which caused property damage or bodily injury. Florida law mandates bare minimum liability coverages, but many people elect higher insurance coverages, the most common being limits of $100,000 per claim, $300,000 aggregate. This covers claims made by other people based on the negligence of the insured driver. Insurance companies often provide lawyers if their insured drivers cause injury. The typical liability policy includes separately stated coverage amounts for both bodily injury liability and property damage liability.
UM - Uninsured Motorist Coverage
UM coverage, or uninsured motorist coverage, is arguably the most important voluntary coverage for drivers in Florida today. If another driver is at fault in an auto accident, but their liability coverage is, for example, only $20,000, you may be at risk if your expenses exceed that amount of money. UM coverage can act like a gap – you may choose to add UM coverage to your policy to make up for any shortfall in another driver’s coverages or if they are uninsured. All insurance companies in Florida offer UM coverage, and an insured must “opt out” – that is, choose to not accept UM coverage in writing. UM coverage is a very important part of ensuring you, as a driver, are protected and not left vulnerable because another driver has chosen a low insurance amount.
Additional Coverages
Drivers in Florida may choose certain additional types of insurance coverage, all of which are optional and voluntary. For example, some policies will cover physical damage – if you are involved in an accident and you are at fault, physical damage coverage will cover the cost to fix your vehicle, up to the market value of your vehicle. Most physical damage policies fall into two categories – an “all risk” policy, which covers any physical damage to your car regardless of what kind of damage it is (such as fire, flooding, trees falling on it, etc.) unless the damage is specifically excluded by the policy in writing. This “all risk” auto coverage is referred to as Comprehensive coverage, and is different than the other type, called Collision. As the name implies, Collision coverage provides insurance if your vehicle is involved in an accident caused by a collision with another vehicle or object. And certain other insurance options are often offered, such as the ability to increase PIP coverage, towing coverages, rental car, lost wages, etc.
For more information on insurance coverages, talk to an insurance agent licensed in Florida, or for general insurance questions consult for FREE with an experienced attorney at the Byrne Law Group by calling 813-413-6565 today or completing the form.