Auto Insurance Coverage In Florida: What's Included In Full?

In Florida, full coverage auto insurance is a bit of a misnomer as it does not provide complete liability protection. Instead, it is the bare minimum protection required by Florida law to obtain a driver's license. Full coverage includes a minimum of $10,000 Personal Injury Protection (PIP) and $10,000 Property Damage Liability (PDL). This type of insurance covers damage to or theft of your vehicle, your legal responsibility to others for bodily injury or property damage, and the cost of treating injuries, rehabilitation, and sometimes lost wages and funeral expenses.

Personal Injury Protection (PIP)

In Florida, PIP covers 80% of medical costs, which include doctor's visits, medical exams, prescription medication, and diagnostic tests. It is important to note that PIP does not cover acupuncture. Additionally, PIP provides coverage for 60% of lost wages, up to a limit of $10,000. This coverage also extends to the cost of hiring someone to perform daily chores that the injured person can no longer do, such as laundry, house cleaning, and pet care.

In the unfortunate event of the policyholder's death, PIP provides death benefits of up to $5,000 for funeral and burial expenses, in addition to the other benefits. Florida drivers have the option to choose whether their PIP covers only themselves or extends to other residents in their household.

To be eligible for PIP benefits, car accident victims must receive medical treatment from a healthcare professional within 14 days of the accident. This is to ensure that those with severe injuries receive timely treatment and to prevent individuals without severe injuries from receiving unnecessary benefits.

Florida's PIP laws are designed to reduce the number of lawsuits filed by allowing individuals to seek compensation for damages through their insurance coverage. However, individuals can still file a lawsuit if their medical costs exceed $10,000 or if they experience severe, permanent injuries, or death.

Property Damage Liability (PDL)

However, it is important to note that $10,000 may not be sufficient to cover all expenses in a major collision. If the damages exceed your PDL coverage, you may be held personally liable for the remaining cost. As a result, many drivers opt to buy more PDL coverage to ensure they are fully protected in the event of an accident.

The amount of PDL coverage you need is determined by your budget and the value of your assets. If you have significant assets, such as a home or other valuable property, you may want to consider purchasing additional PDL coverage to protect your assets in the event of an accident. PDL coverage is often affordable, but you need to take into account the cost when selecting your coverage limits.

Your driving history is another factor to consider when deciding on the amount of PDL coverage. If you have a history of accidents or traffic violations, you may want to consider purchasing additional coverage to protect yourself from financial liability in the event of a collision.

In summary, PDL coverage is an essential component of auto insurance in Florida, providing drivers with financial protection in the event of an accident. While it is required by law, it is advisable to purchase additional coverage to ensure you are fully protected.

Bodily Injury Liability Coverage

In Florida, Bodily Injury Liability (BIL) insurance coverage is the part of an auto insurance policy that protects the policyholder in the event that they are found responsible for causing injury or death to another person in a car accident. This coverage is paid to the other person, not to the person who owns the policy. For instance, if you were hit by another driver who was at fault and they have BIL coverage, their insurance would pay for your injuries.

BIL insurance is not mandatory in Florida unless you have been in a car accident or committed certain traffic violations. However, it is highly recommended that drivers have at least $10,000 of BIL coverage. Florida only requires two types of insurance coverage to drive: Personal Injury Protection (PIP) and Property Damage Liability (PDL), each with a minimum coverage of $10,000.

The exception to the lack of a BIL requirement is outlined in the Florida Financial Responsibility Law. This law states that if a driver is involved in an accident with at least $500 of property damage or bodily injury, they must be "financially responsible" or have their license and registration suspended. The easiest way to meet this requirement is to have an insurance policy with a minimum of $10,000 per person and $20,000 per accident in BIL coverage.

Another exception is for individuals convicted of a DUI. In these cases, BIL insurance is required for a period of three years after the driver's license has been reinstated, with a minimum coverage of $100,000 per person and $300,000 per accident.

It is important to note that BIL coverage does not pay for the policyholder's own injuries. Those are covered by other parts of the policy, such as PIP coverage, MedPay coverage, and Uninsured Motorist (UM) coverage.

Having BIL coverage is crucial if you drive in Florida or any other state. Firstly, if you cause an accident and someone else is injured, they can sue you for damages. BIL coverage will pay for their injuries and protect your assets. Secondly, insurers will only sell you UM coverage if you also have BIL coverage. Since Florida has a high percentage of uninsured motorists, purchasing UM coverage is essential to protect yourself in case you are injured by an uninsured or underinsured driver.

In summary, while BIL coverage is not mandatory in Florida, it is highly recommended to protect yourself and your assets in the event of a car accident.

Uninsured/Underinsured Motorist Coverage

Florida has the highest number of uninsured motorists in the country, with nearly 25% of drivers uninsured. This means that if you get into an accident with an uninsured driver, you could be left to pay for all the damages and expenses yourself. Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage are add-ons to standard auto insurance policies, designed to help cover the costs that other drivers cannot pay for.

UM coverage protects you if an uninsured driver causes an accident. The policy compensates you for damages that would normally be covered by the at-fault driver’s Bodily Injury Liability (BIL) coverage. UM coverage can pay for lost wages, diminished earning potential, out-of-pocket expenses, and permanent impairments and disabilities.

UIM coverage, on the other hand, pays the difference if your damages exceed the at-fault driver’s BIL insurance coverage policy limits. This is particularly useful when a driver causes a multiple-car accident, and their insurance is not enough to cover all the repairs.

Florida law does not require drivers to purchase UM or UIM coverage. However, insurance companies must offer it as an option when you select your insurance plan. If you choose not to purchase this coverage, you must opt out in writing.

There are two main types of UM/UIM coverage:

• Uninsured Motorist Bodily Injury (UMBI): This insurance pays for injuries, pain and suffering for you and your passengers when an uninsured driver is at fault. It also applies when an uninsured driver hits you while you are on foot or riding a bike.
• Underinsured Motorist Bodily Injury (UIMBI): This insurance coverage pays for medical bills for you and your passengers when a driver with insufficient coverage hits you.

In addition, there are two less common types of UM/UIM coverage:

• Uninsured Motorist Property Damage (UMPD): Pays for severe damages to your car or property by an uninsured driver.
• Underinsured Motorist Property Damage (UIMPD): Offers the same coverage as UMPD for drivers with insufficient coverage.

One of the pros of UM/UIM coverage is that it can be "stacked". Stacking means that the policyholder can multiply their coverage based on the number of vehicles covered under the policy. For example, if you have a $100,000 UM/UIM policy and two vehicles, you can "stack" the policy to have $200,000 in coverage.

Another pro is that UM/UIM coverage can protect you against a hit-and-run accident. In Florida, UMBI policies generally cover hit-and-run accidents.

The main con of UM/UIM coverage is the additional monthly premium. However, this cost is often minimal, sometimes just a few extra dollars a month.

In conclusion, while UM/UIM coverage is not mandatory in Florida, it is highly recommended given the high number of uninsured and underinsured drivers in the state. This coverage can provide financial protection and peace of mind in the event of an accident.

Collision Insurance

In Florida, if you own a motor vehicle with four or more wheels, you are required by law to carry a minimum of $10,000 in personal injury protection (PIP) insurance and property damage liability (PDL) insurance. However, neither of these coverages includes damage to your own vehicle in the event of a collision. This is where collision insurance comes into play.

The average car repair bill associated with an accident in Florida is substantial, so having collision coverage can provide significant financial relief. Additionally, collision coverage is relatively affordable, with the average cost per year of adding it to an existing policy being $234, according to the Insurance Information Institute.

It's worth noting that if your vehicle is leased or financed, your lender or dealer may require you to purchase collision coverage. This ensures that their investment is protected in the event of an accident.

In summary, while collision insurance is not mandatory in Florida, it is a valuable addition to your auto insurance policy. It provides financial protection, peace of mind, and predictable repair costs in the event of a collision, helping you get back on the road sooner without incurring hefty expenses.

Frequently asked questions