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| Resource > Articles |
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| How to Buy Automobile Insurance in Florida |
| In this day and age, selecting automobile insurance coverage can be as complicated as buying a house. Although you normally have an attorney when buying a house, most consumers are left in the dark when buying car insurance. The following provides a basic outline of the coverages available and some answers for those in the process of purchasing automobile insurance. Basically, there are five (5) types of coverage which are commonly offered as part of automobile insurance policies in Florida. |
| 1. Bodily Injury Coverage: Bodily Injury, or BI coverage, is coverage to pay for physical injuries, lost wages, pain and suffering and disfigurement which may be sustained by another driver, passenger or pedestrian as a result of your negligence. For example, if you run a red light and injure the driver and one passenger in another vehicle, those persons would be able to file a lawsuit for damages which they suffered as a result of their injuries. BI coverage will provide coverage for their injuries up to the amount of the coverage purchased. Often times, coverage will be offered in limits such as $25,000/$50,000 or $50,000/$100,000 or $100,000/$300,000. The first of these two numbers is the amount of coverage provided for any ONE person’s claim. The second number is the total amount of coverage provided for ALL of the claims filed from that accident. For example, in the above accident, if both driver and passenger sue you and you have coverage of $50,000/$100,000, your insurance company would pay up to $50,000 for each of the person’s claims or a total coverage of $100,000. BI coverage is not required in Florida like PIP and Property Damage, but it is extremely important because in most cases you can only get Uninsured Motorists coverage for you and your family if you secure BI coverage. In other words, you can’t normally get Uninsured Motorists coverage unless you also have BI coverage. Although the circumstances of each person’s life dictates the coverage they should have, BI coverage of no less than $50,000/$100,000 is suggested for our clients. For injuries, BI coverage and Uninsured Motorists coverages are the most important insurance coverages on any automobile policy in Florida. |
| 2. Uninsured/Underinsured Motorists Coverage: UM/UIM coverage is insurance for you and your resident family members who are injured as a result of the negligence of another driver who does not have enough or any Bodily Injury insurance coverage. For example, you’re sitting at a red light and you get rear-ended by Mr. Smith. If Mr. Smith has either no BI insurance coverage or insufficient BI coverage for the physical injuries you have sustained, your UM/UIM coverage will step in and provide coverage for your bodily injuries. Since more than 30% of the policies written in Florida do not include any BI coverage, UM/UIM is possibly the most important aspect of coverage from you or your family injured in a crash.. UM/UIM provides coverage for you and your family members for injuries that may be suffered because of some other driver’s negligence, including death. The most tragic advise we ever have to provide a client who has either lost a loved one or suffered debilitating physical injury is that the at-fault driver has no BI coverage. Unfortunately, this is a problem that is corrected where clients purchased UM/UIM coverage. Like Bodily Injury coverage, the minimum UM/UIM coverage suggested for any client is $50,000/$100,000. Also, ignore insurance agents who claim you don’t need UM/UIM coverage because you have health insurance or because you have PIP. PIP pays only medical bills and lost wages and does not provide any payments for pain and suffering or other non-economic damages you may suffer. UM/UIM is vital coverage on any insurance policy as it is the ONLY insurance which will cover you for your pain and suffering, loss of the enjoyment of life or loss of companionship with your
spouse as a result of an injury suffered as a result of the negligence of some uninsured person. Understanding that far too many people in Florida have no BI coverage, UM/UIM coverage is vital in Florida. |
| 3. Personal Injury Protection (PIP) Coverage: PIP, as it is commonly referred to, works like health and disability insurance for a named insured or resident relative who is injured in an automobile accident. If you get into an automobile accident and require medical treatment or you are out of work for a period of time, your PIP coverage should pay 80% of your medical bills and 60% of lost wages. PIP coverage is normally limited to $10,000, and you are required to pay a 20% co-pay for some medical care. PIP coverage can be purchased above $10,000, and this extra coverage is recommended for high income earners so as to cover their lost wages in the event they are in a crash which forces them out of work. PIP coverage, like property damage coverage, is required on every insurance policy issued in Florida. |
| 4. Property Damage Coverage: Like it sounds, property damage coverage pays for property damage which you may cause to another driver or to a property owner whose property is damaged by your vehicle. For example, if you get in an accident which is your fault, and you strike a car and then a roadside sign, your property damage coverage would pay for the damage to the other vehicle and the roadside sign. Property damage coverage does NOT cover damage to your vehicle, which falls under comprehensive and collision coverage. Like PIP coverage, you are required to have property damage coverage in Florida in an amount no less than $10,000. When considering the amount of property damage coverage you need to consider what damage you might cause versus what assets you have for the other party to take if they sue. Although the circumstances of every person’s life and consideration of such policy limits is different, property damage coverage should be no less than $25,000.00. |
| 5. Comprehensive and Collision Coverage: ‘Comp and Collision’ as it is commonly referred to as, pays for damage to your vehicle in an accident irrespective of fault. For example, if you cause an accident and your vehicle is damaged, your Comp and Collision will pay for the damage to your vehicle up to the policy limits of such coverage. In addition, if you are struck by another at-fault driver and that driver has no or not enough property damage coverage which would cover your vehicle, your Comp and Collision coverage will step up and pay for the damage to your vehicle. Comp and Collision is often times a coverage required to be purchased if you borrow money to purchase your car or if your vehicle is leased. Another consideration is that the more your vehicle is worth, the more important Comp and Collision coverage would be. Every case is different and should be considered on an individual basis. |
| Understanding insurance coverage is not free and often times people can’t afford some coverages, we recommend the minimum coverages discussed above be secured for the protection of you and your family or friends who may be in your vehicle. Understand the advice provided herein is an outline of insurance coverages and the exact coverages which should be secured by any person depends entirely on the circumstances of his/her life. If there is more than one vehicle in the household, an economical way to secure insurance is to get a common policy with all of the vehicles on it. |
| When buying car insurance, secure quotes from at least three companies. Every insurance company is different and every policy premium, even for the same coverage, will be different. For this reason, you should compare your options with several companies and only after making that comparison make the decision that is best for you and your family. If you have any questions with regard to insurance coverage, insurance policies, personal injury or UM/UIM claims, please do not hesitate to call Payer Law Group at 1-(866) 648-1510. We have the answers. |
| Disclaimer |
| This publication and the information included in it are not intended to serve as a substitute for consultation with an attorney. Specific legal issues, concerns and conditions always require the advice of appropriate legal professionals. |
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