Automobile Insurance In Florida,
Automobile Insurance Toolkit Table of Contents
In Florida, vehicle owners may be required to
purchase two types of auto insurance.
The first type of auto insurance is outlined in the
Florida Motor Vehicle No-Fault Law (s. 627.736, Florida
Statutes). It requires every person who registers a
vehicle in Florida to provide proof they have personal
injury protection (PIP) and property damage liability
(PD), with minimum limits of $10,000 each. PIP covers
injuries you and certain others may incur in an auto
accident, regardless of fault. PD covers your liability
if you damage property belonging to someone else
in an auto accident. Examples might include another
person’s vehicle, a telephone pole or a building.
Individuals who are in the State of Florida with their
vehicle for more than 90 days in the last 365 days
must carry these minimum limits of coverage. It is
important to note that the 90 days do not need to be
consecutive in order for the law to apply. Questions
about titling or registering your vehicle or further
clarification on how Florida’s auto insurance laws apply
to you should be directed to the Florida Department
of Highway Safety and Motor Vehicles. You may visit
them online at www.flhsmv.gov or call (850) 617-2000.
The second type of auto insurance is outlined in the
Florida Financial Responsibility Law. It requires drivers
who have caused accidents involving bodily injury/death
or received certain citations, to purchase bodily injury
liability (BI) coverage with minimum limits of $10,000
per person and $20,000 per accident, referred to as
split limits. You may purchase a policy that covers both
types of insurance required with a single limit of at
least $30,000. Drivers convicted of driving under the
influence must purchase BI coverage in the amount of
$100,000/$300,000 and $50,000 in PD liability.
The reason for the Florida Financial Responsibility
Law is to require owners or operators of motor
vehicles to be financially responsible for damages
and/or injuries they may cause to others in an auto
accident. The failure to be financially responsible
may result in the loss of driving privileges in Florida.
Although there are other ways to prove financial
responsibility that are acceptable to the Florida
Department of Highway Safety and Motor Vehicles,
our publication deals strictly with insurance.
01
Coverages & Minimum
Requirements
Table of Contents Automobile Insurance Toolkit | 5
Coverage Descriptions
Bodily Injury Liability (BI)
This coverage protects you for injuries or death to
someone else that you are legally liable for resulting
from a motor vehicle accident. As the owner of a
vehicle, anytime an accident occurs involving your
insured vehicle (whether or not you are driving), the
possibility exists that you may be held financially
responsible for any damages. This coverage not
only covers the actual loss incurred, it can also
provide coverage for your defense if you are sued.
When referring to BI limits of liability, the first number
represents the maximum amount of coverage you have
for each individual injured in a given accident and the
second number is the maximum amount of coverage
available to all injured persons in that accident.
Let’s look at an example.
You cause an accident and there are two people
in the other vehicle. You chose to carry BI
limits of $10,000 per person and $20,000 per
occurrence. Person “A” sustained $25,000 dollars
in injuries and Person “B” sustained $15,000
in injuries. How will your policy respond?
EXAMPLE Person “A” Person “B”
Total Injuries: $25,000 $15,000
Their PIP Coverage: $10,000 $10,000
Your Responsibility: $15,000 $5,000
Payment from Insurer: $10,000 $5,000
Making a decision about the amount of coverage you should carry is a personal decision based on many factors.
Discussing your coverage needs with a qualified insurance agent can help you better understand your options. It is
important to remember that if an accident occurs, and the injuries sustained by another party are beyond the limits
of your insurance policy and the injured party has a permanent injury, scarring, disfigurement or is killed, they or
their beneficiary may pursue recovery from you through the court system.
Property Damage Liability (PD)
PD liability pays for damage to another person’s
property caused by you or someone else operating
your insured vehicle. Most often this coverage will
be used to repair the other automobile(s) involved in
an accident with your insured vehicle. It can also be
used to pay for damage to street signs, mailboxes,
buildings or other property owned by another party.
Uninsured/Underinsured Motorist (UM)
This coverage is optional but provides very important
benefits to you and certain others who sustain injuries
from an auto accident caused by an uninsured or
underinsured motorist. The coverage allows you to
collect amounts from your own insurance carrier that
you would have been able to collect from the at-fault
party if they had insurance or sufficient insurance
limits. It can provide additional medical expenses, lost
wages, pain and suffering and other expenses that
might arise when an injury occurs. Once coverage
has been triggered, benefits will be paid directly
to the injured person, normally in a lump sum.
You may wonder why you need to purchase UM
coverage if you have PIP and health insurance since in
most cases, after your PIP coverage is exhausted, your
health insurance may pay some of your medical bills.
Most health insurance policies include deductibles and
copayments which are out of pocket expenses for you.
Health insurance normally does not provide coverage
for expenses you may incur if you or a covered family
member must stay in a convalescent center. In some
cases when an injury is severe, permanent, or requires
a longer recovery time, it can be important for your
quality of life and financial health to have coverage
that will continue to pay for lost wages. Replacement
services may be required like lawn maintenance
or housekeeping. Due to your injuries, your home
may require modifications like a wheelchair ramp
or your vehicle may require special equipment.
When purchasing UM, you must make two decisions.
You must decide the limits you need and whether
or not you want stacked or non-stacked coverage.
All insurance companies are required to provide
stacked UM with the same limits as your Bodily
Injury coverage. Some insurance companies offer the
option to purchase lower limits and/or non-stacked
6 | Automobile Insurance Toolkit Table of Contents
coverage. Stacked UM coverage means that the limit
will increase by the number of vehicles you own,
regardless of whether or not the vehicles are insured
on the same policy. In other words, if you have stacked
UM limits of 50/100 and own three vehicles, your
actual coverage is multiplied times three or 150/300.
If you elect non-stacked UM at 50/100, that is the
maximum coverage available in an accident regardless
of how many vehicles you own. Another important
coverage difference between the stacked and nonstacked
form is how the policy will respond if you
are injured by an uninsured/underinsured motorist
in a vehicle you own, but do not have insured. In
that case, only the stacked form would respond.
Personal Injury Protection (PIP)
You will often hear Florida referred to as a “No-Fault
State.” This means that any time you are injured in
an auto accident you will file your injury claim with
your own insurance company, regardless of who is
at-fault. However, once an injured person pierces
the tort threshold, they may seek recovery for costs
not duplicated by PIP from the at-fault party.
Section 627.737, Florida Statutes, states the threshold
has been pierced when an injury from a car accident
results in significant and permanent loss of important
bodily function, permanent injury, significant or
permanent scarring, disfigurement or death. Section
626.9541, Florida Statutes, protects consumers from
an increase in their premium for filing a PIP claim
in a not-at-fault accident. Section 627.736, Florida
Statutes, details who is covered under your PIP but
there are many variables which ultimately determine
how your policy will respond in a claim situation.
The following describes situations
when coverage applies:
1. Injuries to named insured:
a. If the accident occurs in Florida, while
occupying any defined motor vehicle or if
struck by a defined motor vehicle while not
occupying any self-propelled vehicle.
b. If the accident occurs outside of Florida,
while occupying the insured motor
vehicle or a vehicle owned by a resident
relative, if it is insured for PIP.
2. Injuries to resident relatives of named insured:
a. Covered the same as the named insured.
For accidents outside of Florida, the
named insured’s benefits apply to the
relative only when the relative is occupying
the named insured’s motor vehicle.
3. Persons other than named insured and relatives:
a. If the person is not an owner of a motor
vehicle or entitled to benefits from another
owner’s insurance company and if the accident
occurs in Florida, the owner’s benefits are
payable to such persons (1) while occupying
the named insured’s motor vehicle or (2) if the
person is a Florida resident, if struck by the
insured’s motor vehicle while a pedestrian.
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