Do you believe that having full coverage for your Florida auto insurance makes you safe?
Every day after a car accident, I see folks at my office who have the same thought. They learn the hard way that “full coverage” didn’t really cover them at all after they are involved in an accident.
Please ask yourself: What does full coverage mean? This is a question that I have also asked myself. I don’t know, is my response, and I’m a seasoned accident lawyer who has seen it all! In actuality, there is no definition of “full coverage” in Florida. Although insurance firms use this phrase to make you feel good, it doesn’t guarantee that you are safe.
The purpose of this article is to educate you about the realities of Florida auto insurance. I want to protect you and your family, so you don’t end up paying for an error that wasn’t even your fault.
What Does “Full Coverage” Mean to an Ordinary Floridian?
“Full coverage” sounds like a magic shield around your car to most people. When you hear the phrase, you most likely think:
- The insurance pays if I hit someone.
- The insurance covers me if I’m hit.
- The insurance covers the cost if my automobile is stolen or smashed by a fallen tree.
- The insurance compensates if I wind up in the hospital.
The majority of people in Florida believe that having “full coverage” indicates that they have complied with the law and have sufficient funds to cover unforeseen circumstances while driving. However, “full coverage” is essentially just whatever your insurance provider decided to offer you that day because the law doesn’t define it.
If I Am Missing Potential Coverages, Why Is It Called “Full Coverage”?
This is the major “gotcha.” As long as you have the two items that are mandated by Florida law (PIP and Property Damage), it can be considered to be full coverage.
You can, however, have “full coverage” and still be lacking a number of crucial safeguards. Approximately one in five drivers in Florida do not have any insurance at all. Up to 40% of drivers in my office do not have uninsured motorist or bodily injury coverage. Your “full coverage” won’t cover your medical expenses or missed work time if one of them strikes you and you don’t have UM. It’s similar to wearing a “full suit of armor” without the helmet!
How Can You Determine the Coverage of Your Auto Insurance?
Don’t rely just on the information in the small ID card in your glove box. You must examine your Declarations Page (also known as a “Dec Page”) in order to see the truth.
- Step 1: Check your most recent email from the insurance company or log into your insurance app.
- Step 2: Locate the page where your name, your vehicle, and a series of numbers with dollar signs ($) are listed.
- Step 3: Look at the “Limits” column. This is the precise amount that the insurance provider will pay in the event that something goes wrong.
What Do the Different Types of Auto Insurance Mean?
Let’s simplify insurance like a grocery list because it can be confusing. What you will see on that Dec page is as follows:
- PIP (Personal Injury Protection): Florida is a “No-Fault” state. This implies that regardless of who caused the collision, your own insurance will cover the first $10,000 of your medical expenses.
- Property Damage (PD): This covers the cost of the other person’s vehicle in the event that you strike it. It doesn’t repair your own vehicle.
- Bodily Injury (BI): If you injure someone, this covers their medical expenses. Surprisingly, most drivers are not required by Florida law to have this, but you need it to guard against legal action.
- Uninsured/Underinsured Motorist (UM): This is the MVP. If someone hits you and they have no insurance (or not enough), this pays for your medical bills and agony and suffering.
- Collision: This covers the cost of fixing your own vehicle in the event of an accident.
- Comprehensive: This covers “acts of God” such as hitting an animal or experiencing a hurricane or fire.
- Rental: This ensures that following an accident, you will be given a rental car.
Which Coverage Type Do I Require?
In order to be fully protected in Florida, you need more than the “legal minimum.” You ought to have:
- PIP (Required)
- Property Damage (Required)
- Bodily Injury (To shield you from legal action if you injure another person)
- Uninsured Motorist (to safeguard yourself in the event that you are struck and hurt in a collision)
How Much Should I Purchase of Each Coverage Item?
Although everyone has a different budget, I would suggest the following to my own friends and family:
- Bodily Injury: At least $25,000 per person / $50,000 per accident. If you have a house or a good job, you need this so you don’t lose everything in a lawsuit.
- Uninsured Motorist: Match your Bodily Injury limits ($25k/$50k). This is for YOU. Don’t value the other guy’s life more than your own!
- Property Damage: At least $25,000. Think about how much a new truck costs these days. $10,000 isn’t enough to fix a bumper anymore.
How Can I Determine Whether My Insurance Coverage Is Too High or Too Low?
Having too much insurance is quite uncommon. However, I’ve observed it with physicians and those who fear losing their personal belongings. Too few insurance is the case with the vast majority of Floridians.
Here’s a basic rule of thumb. Your insurance is insufficient if:
- The only minimums available to you are $10,000 for property damage and PIP.
- You don’t possess Bodily Injury AND Uninsured Motorist coverage.
- An auto accident would leave you in financial ruin.
Why You Should Care About This
The insurance company is not on your side if you are involved in an automobile accident. Their goal is to pay you as little as possible. Having the proper coverage gives me, your lawyer, the resources I need to defend you.
I don’t want you to be the person sobbing while sitting in my office because you have “full coverage” but not the necessary coverage to keep yourself safe. You can check your Dec Page or raise questions over the phone with your insurance provider. Give me a call if it’s unclear. Instead of informing you that there is no money available following a crash, I would prefer to assist you in fixing your policy right away.
Stay safe out there, Florida!
