Florida Insurance Explained
Automobile Insurance is complicated enough. The worst thing you can do is to have to figure out if you have the right types and amounts of coverage after you've been in an accident.
We have found that many people just don't buy the right auto insurance to protect themselves and their family if they have an accident. Unfortunately, once they find out that they don't have enough insurance, it's usually too late.
In an effort to help you get the right coverage before it's too late, we are providing you with the following explanations of some of the insurance coverage available to you in Florida.
First of all, the coverages available to fix cars and the damages they cause to other cars or property are called Property Damage Coverages. These are as follows:
A. Property Damage Liability: (also called P.D.) will pay if your car damages someone else's car or other property (such as mailbox or home). You are required by Florida Law to purchase coverage of at least $10,000.00, although you can get higher limits. This coverage will not pay for any damage to your own car.
B. Collision: will pay to repair or replace your own car if you are in an accident, no matter who is at fault in causing the accident. This coverage is usually sold in an amount to cover up to the "actual cash value" (ACV) of your car, minus any deductible you select. This is not a required coverage, although the bank may require you to get it if your car is financed.
C. Comprehensive: will pay to repair or replace your own car if it suffers a casualty loss other than in an accident or collision. For example, if your car were damaged in a fire or hail storm, or if it were vandalized or stolen, this coverage would be used to repair or replace your car. This coverage is usually sold in an amount to cover up to the "actual cash value" (ACV) of your car, minus any deductible you select. This is not a required coverage, though the bank may require you to get it if your car is financed.
The second set of automobile related insurance coverages are the ones which pay for injuries, medical expenses, wages and other damages which people suffer as the result of auto accidents. They are the Injury Liability/Wage Coverages. They are as follows:
A. Personal Injury Protection (also called PIP or "No-Fault") will pay 80% of your medical bills and 60% of your lost wages, up to your coverage limit, for injuries and lost wages suffered in a motor vehicle accident (no matter who was at fault in causing the accident). This coverage is mandatory in the State of Florida, and you must have at least $10,000.00 limits, although you may purchase a deductible up to $1,000.00. This coverage will also pay 100% for any domestic services you cannot perform as a result of injuries you incur in an automobile accident (such as paying for a housekeeper or for someone to mow your lawn while you are injured). If you own a car, or reside with a relative who owns a car, you may be entitled to PIP benefits even if you are injured while you are riding a bicycle, or as a pedestrian. This coverage may also provide benefits if you are injured while performing maintenance or repairs to an automobile.
B. Medical Payments (also called Med Pay) will pay for medical bills up to the limits of your coverage. While you have PIP coverage remaining this coverage typically supplements your PIP and pays the other 20% that your PIP does not pay for medical expenses. If your PIP benefits exhaust, this coverage will typically pay 100% of your medical bills until your medical payments coverage exhausts. This is an optional coverage and is not required by law.
C. Bodily Injury (also called BI) provides coverage for payment of medical bills, pain and suffering, surgery, injuries and death which you, or someone else driving your car, cause to another person in an accident. Although, this coverage is not required by Florida Law, it is very important coverage because it protects or limits your assets from being taken in a law suit, and it allows you to purchase the most important coverage available; uninsured motorist coverage.
D. Uninsured Motorist Coverage (also called UM or UIM) provides protection to you and your family for medical expenses, lost wages, pain and suffering which may be caused in an auto accident by another driver who is uninsured or who does not have enough car insurance to adequately compensate the injured party. This optional coverage is the most important coverage that you can buy to protect you and your family. However, you cannot purchase this coverage unless you have purchased bodily injury coverage and you may not purchase a higher limit of uninsured motorist coverage from that of your limit for bodily injury coverage. But, you can stack your uninsured motorist coverage, which actually multiplies your coverage amount by the number of cars that you insure under the same policy.
As you can see, automobile insurance coverage in Florida is very complex. At David P. Folkenflik, P.A., we offer a free review of your automobile insurance, with no obligation, so that you can see whether or not you are adequately covered. This will allow you to feel comfortable that in the unfortunate event of an automobile accident or injury you and your loved ones will have adequate coverage for care and compensation.
At David P. Folkenflik, P.A., we are an Accident & Injury Law Firm that helps people who have been injured by the negligence of another person. If you would like more information about the services we provide, call today for a free consultation.