Florida requires residents to have car insurance to drive legally, but drivers are only required to carry $10,000 in personal injury protection (PIP) and $10,000 in property damage liability (PDL). In addition, Florida also has a higher percentage of uninsured motorists than many other states.
Considering how many cars on the road are uninsured — and that many insured motorists only carry the minimum insurance coverage required — the financial risk for Florida drivers is much higher than that of other states. That’s why it’s crucial to understand the different types of car insurance coverage, so you have the protection you need.
Liability Insurance
If you’re involved in a car accident that results in injury or damage, liability insurance will cover the cost of any bodily injury and property damage that you are legally liable for, up to the limit of liability declared in the policy.
In Florida, property damage (PD) liability is required, but bodily injury (BI) coverage is not. This is why state minimum policies may not cover all the costs of an accident. BI claims are typically much more expensive than PD claims. If the damages exceed the liability limit of your policy, you may be held responsible for the additional costs. Make sure you have BI and PD liability limits that are high enough to protect you.
Collision Coverage
Collision coverage pays for damages to your vehicle. It is designed to return your vehicle to its pre-accident condition or cover the cost of replacing the vehicle if it’s totaled in an accident. Collision coverage is required when there’s a lien on your car, meaning that your car loan is not yet paid off. There will usually be a deductible that you’re responsible for paying before your coverage kicks in.
Comprehensive Coverage
Also known as “other than collision,” comprehensive coverage insures your vehicle against fire, theft, vandalism, flood and other damages that aren’t caused by an accident with another vehicle.
If your car loan is not yet paid off, comprehensive coverage is required. You’ll need to comply with the lenders’ maximum collision and comprehensive deductibles and add your lender to the policy as the lien holder. Otherwise, the lender may place expensive “single interest” physical damage coverage on the vehicle and charge your account.
Personal Injury Protection (PIP)
Personal Injury Protection (PIP) is required in Florida, and it provides coverage for your bodily injury — regardless of fault — in an auto accident, even if you’re cycling or walking instead of driving. It covers you and your family members, and it may also cover passengers in your car. Keep in mind that PIP coverage follows the policyholder, so if someone is borrowing your car, they might not be covered by your PIP.
Uninsured/Underinsured Motorist Protection (UM/UIM)
Uninsured/Underinsured Motorist Protection (UM/UIM) covers you if the person that caused your injury is either uninsured, or has liability limits below the threshold of your injuries (underinsured). If the person at fault has no insurance or only minimal limits, you could collect from your insurer instead.
UM/UIM coverage is available only if you purchase BI liability, and it can only be purchased at the same limit or a lower amount. You must say in writing whether you accept or decline UM/UIM coverage on your policy.
Make Sure You Have Enough Coverage
If you don’t have enough coverage, it could lead to serious financial hardships for many years to come. That’s why it’s important to talk with an auto insurance agent about your specific needs, especially given the unique challenges of driving in Florida.
We’re here to help answer your questions and get you the coverage you need. To get started, give us a call at 877-997-2221 or email insurance@vystarcu.org to connect with a licensed agent, and we can give you a free, no-obligation quote. You can also request a quote online.