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Do I need UM and UIM Coverage in Florida?


UM and UIM coverage stand for uninsured motorist and underinsured motorist insurance. These are first-party coverages designed to compensate insureds for economic losses and non-economic losses resulting from certain types of auto accidents. As the names suggest, UM coverage kicks in when the at-fault party has no insurance, and UIM kicks in when the at-fault party doesn’t have enough coverage to pay your entire claim.

UM and UIM coverages are different than PIP, or Personal Injury Protection, which is mandatory in Florida. Auto insurers are required to offer these additional coverages, but you are not obligated to purchase them. You may be wondering whether they are really necessary. If you can afford them, you really should consider purchasing the coverages. Florida has one of the highest uninsured motorist rates in the country. In fact, data shows that at one point, over 25% of the drivers in the state don’t have liability coverage. That means that essentially, you have a one in four chance of getting hit by someone who doesn’t have insurance. Are those odds really worth chancing it?

Why You Should Purchase Uninsured/Underinsured Motorist Coverage

Florida is a no-fault insurance state. What this means is your own insurance company will cover your losses in the event of a minor accident. Your PIP will cover up to $10,000 of your medical costs and other related damages. However, if you are seriously injured in an accident and are seeking more than $10,000 in compensation, you will need to present a claim against the other driver’s insurance company.

Presenting a claim can still be a challenging task. Many people don’t purchase liability coverage, and those that do have it usually carry very low coverage limits. If you are seriously injured and they do not have enough coverage, that means you are potentially out of pocket for your injuries, loss of earnings, pain and suffering, and property damage.

How Much UM / UIM Coverage Should You Purchase?

In order to purchase UM/UIM coverage, you have to purchase liability coverage as well. There is no mandated amount that you should purchase. It really comes down to how much you can afford. Your UM/UIM limits cannot exceed your bodily injury liability coverage. For example, if you purchase $50,000 bodily injury liability, you’ll only be allowed to purchase a maximum of $50,000 UM.

Workers’ Compensation and UM/UIM Coverage

If there is a workers’ compensation claim active, the employee would not be eligible for UM/UIM coverage. The reason for this is because the workers’ compensation claim would be the one taking care of the loss that the employee sustained. UM/UIM would cover the damages that workers’ compensation doesn’t, like the pain and suffering.

Contact an Orlando Auto Accident Attorney Today

Pursuing a claim against the other driver can become complicated almost instantly, especially if he or she lacks sufficient coverage. This is where you need an Orlando auto accident attorney on your side. Our attorneys can help protect your rights and pursue a claim against the at fault driver. Contact Payer Law at 407-307-2979 to schedule an initial consultation.



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