Understanding the Different Types of Car Accident Insurance Coverage in Florida

Significant financial losses can result from auto accidents, particularly in Tampa, where the insurance claims can be complicated. Drivers must be aware of the various auto accident insurance coverage forms to guarantee proper protection.

Because Florida has a no-fault insurance system, any driver’s medical costs following an accident are covered by their insurance, regardless of who was to blame.

However, this system does not eliminate the need for additional coverage, as basic policies may not fully cover all expenses. Tampa car accident lawyers can assist individuals in navigating insurance claims and securing fair compensation.

Personal Injury Protection (PIP)

According to Florida law, every driver must have Personal Injury Protection (PIP) insurance worth at least $10,000. No matter who is to blame, PIP pays for medical bills, missed income, and other costs associated with injuries received in auto accidents.

However, it only covers up to 80% of medical expenses and 60% of lost wages, leaving drivers responsible for the remainder. Since Florida’s minimum coverage might not be enough to cover severe injuries, many drivers opt for higher PIP limits or additional coverage options.

Property Damage Liability (PDL)

Besides PIP, Florida requires drivers to carry $10,000 in Property Damage Liability (PDL). When the policyholder is at fault, this coverage covers damages to another person’s car or property.

However, it does not cover repairs to the policyholder’s vehicle. Drivers who finance their cars may be required to carry additional coverage by their lenders to ensure adequate asset protection.

Bodily Injury Liability (BIL)

Unlike many states, Florida does not require drivers to carry Bodily Injury Liability (BIL) insurance. However, this coverage is highly recommended as it protects against claims from injured parties when the policyholder is at fault.

If the victim files a lawsuit for damages, BIL will pay for the injured party’s medical bills, missed income, and legal fees. In order to reduce their risk of being held personally liable for damages in the event of a major accident, many drivers get this policy.

Uninsured/Underinsured Motorist Coverage (UM/UIM)

Florida has many uninsured drivers, making Uninsured/Underinsured Motorist Coverage (UM/UIM) an essential addition to any policy. This coverage helps policyholders recover damages if an uninsured driver injured them.

Since Florida’s no-fault system limits lawsuits in minor accidents, UM/UIM becomes especially important in severe cases where medical expenses exceed PIP limits.

Collision and Comprehensive Coverage

Collision coverage pays for damages to a policyholder’s vehicle emanating from an accident, regardless of fault. Conversely, comprehensive coverage covers damages caused by non-collision events such as theft, vandalism, or natural disasters.

While not required by Florida law, these coverages are typically mandated by lenders for financed vehicles and offer valuable protection for car owners.

Takeaway

Financial stability depends on knowing the many Florida auto accident insurance coverage forms. Additional coverage alternatives can help avoid large out-of-pocket payments in the event of an accident, even though the state-mandated minimums offer some protection.

To be sure they have the right coverage for their needs, drivers should review the policy terms and consult a professional.