FAQ About Automobile Insurance
Many of our clients are quite surprised to learn that their automobile insurance policies do not provide the "full coverage" that they thought existed. Unfortunately, only after an accident or loss do they appreciate what the various coverage's mean and how they apply under Florida law.
What is Bodily Injury (BI) Coverage?
This coverage will pay for personal injury or death to you when the other driver or owner is involved in an accident with your vehicle in which the other driver is found to be at fault. However, the other at fault insurance will only pay up to the limits of liability provided in its policy (as shown on the “declarations page”.) For example, if the BI limits are $25,000/$50,000 the insurance company would only pay for damages up to $25,000.00 per injured person or a total of $50,000.00 for any number of persons injured in the accident. If the damages exceed the limits of liability, the other at fault driver or owner is personally responsible for those excess damages.
What Personal Injury (PIP) Coverage?
If you suffer injuries in an accident, this coverage with your insurance company will protect you whether or not you cause the accident, up to the limits of your policy and only for specific economic losses. Under most policies, this coverage will pay 80% of reasonable and necessary medical expenses, and 60% of lost wages. However, once the limits of coverage have been reached (i.e. $10,000.00), you are responsible for paying your own medical expenses.
What is Med Pay (Med Pay) Coverage?
This supplemental coverage with your insurance company will pay for the medical expenses not covered under PIP. Since PIP generally covers only 80% of your medical expenses, this coverage could be used to cover the remaining 20%, subject to the limits of liability. Once that limit has been reached, this coverage will no longer pay any medical expenses that you may have.
What is Uninsured/Underinsured Motorist Protection (UM)?
This coverage provides coverage to protect you and your family. It provides for payment of remaining medical expenses and lost wages that you may have, payment for bodily injury, pain and suffering, loss of enjoyment of life, disability, and other non-economic damages that have been incurred as a result of the negligence of another person who lacks bodily injury liability coverage or fails to carry enough coverage to pay for your losses.
What is Property Damage (PD)?
This coverage pays for certain automobile damage which the other at fault driver causes to your vehicle.
What is Comprehensive (Comp) ?
This coverage with your insurance company pays for losses from incidents other than a collision, such as a fire, theft, flooding, vandalism, or storm damage. Many insurance policies have deductibles for this coverage, meaning you will be responsible for the initial cost of the loss up to the amount of the deductible you have chosen.
What is Collision?
This coverage with your insurance company pays for repair or replacement of your vehicle if it is involved in an accident. It will pay regardless of who causes the accident. It does not cover injuries to people or damage to property other than your vehicle. Generally, you will have a deductible for this coverage, requiring you to personally pay for the initial expenses, subject to the amount of deductible you have chosen.
What is the minimum amount of insurance required by the State of Florida?
Any person who has a car in Florida for more than 90 days during the preceding 365 days, resides in Florida, is employed in Florida or has children in school in Florida must purchase Personal Injury Protection ($10,000) and Property Damage Liability coverage ($10,000).
In addition, a person has to prove financial responsibility due to traffic violations/points or failure to pay for damages they caused in a previous accident, Florida law requires Bodily Injury Liability coverage ($10,000 Bodily Injury one person, $20,000 Bodily Injury one accident.), or $30,000 combined Bodily Injury).
Why do I have to have PIP if I already have health insurance?
Florida law requires every owner of a motor vehicle required to be registered in Florida have PIP to protect themselves in the event of injuries sustained in an automobile accident. This coverage is primary over any health insurance.
Is insurance required on motorcycles?
There is no statutory requirement to purchase any insurance on motorcycles, except when a driver has to prove financial responsibility due to traffic violations/points or failure to pay for damages they caused in a previous accident.
