Gain a better understanding of the different types of automobile insurance coverage that may be purchased in Florida.
Current Florida law requires that the owners of automobiles purchase basic Personal Injury Protection and Property Damage coverage. Additionally, there are other optional coverages that are available, depending on your needs. This brief article is designed to summarize what each of these options will provide coverage for, in the event of an automobile accident.
Personal Injury Protection
Personal injury protection (PIP) is required under the Florida Motor Vehicle No-Fault Law in an amount not less than $10,000. This coverage is designed to pay 80% of your medical bills and 60% of your lost wages, regardless of who caused the accident. You are entitled to this coverage if you are operating a motor vehicle, are a passenger in any motor vehicle or are a pedestrian. Others may be entitled to PIP benefits under your policy, depending on the circumstances of the accident and his or her own PIP coverage.
You may purchase PIP with or without a deductible. If you have a deductible, your insurance company is not liable for otherwise covered expenses until the expenses have met the deductible amount. You are entitled to reserve all or a portion of the benefits for lost wages, as opposed to payment of medical expenses. On the other hand, you may elect to exclude lost wage payments from your PIP benefits, which will normally reduce your premium.
Your automobile insurance company is obligated to pay for covered expenses 30 days after they have been provided with written notice of the claim. They have the right to confirm the validity of the claim within that 30 day period. If the benefits are not paid within that time frame, and the insurance company does not have reasonable proof that they are not responsible, then the overdue amounts are subject to interest charges.
Property Damage Coverage
This is the other type of coverage that is required in Florida. This provides coverage to you for your negligence that results in damage to another's property. The damaged property may include other motor vehicles, but may also include such objects as fences, power poles and signs. The minimum amount of property damage coverage required in Florida is $10,000. Generally speaking, it is advisable to purchase more than the minimum required amount since repair bills for automobiles damaged in an accident may easily exceed $10,000.
Medical Payments Coverage
This is an optional coverage that will pay the 20% of your medical bills that your basic no-fault coverage does not pay. This type of coverage is not required, but is advisable if you want to have coverage for 100% of your medical bills incurred in connection with an automobile accident (up to the limits of your coverage). Medical payments coverage may usually be purchased in varying amounts, and may pay all of a covered medical bill once the basic PIP benefits have been exhausted. Please note that this coverage is available only for medical bills, and does not apply to claims for lost wages. Just as with PIP coverage, medical payments coverage applies to your medical bills, regardless of who was at fault in the accident.
Bodily Injury Coverage
This category of insurance coverage will pay for injury or death claims against the insured for his or her negligence in the operation and/or for the ownership of an automobile. Florida law currently imposes liability on the owner of a vehicle for the negligence of the driver of that vehicle, even if someone other than the owner is driving with permission of the owner.
This type of coverage is designed to protect the policyholder against suits or judgments for negligence resulting in injury or death to others as a result of an automobile accident. If a claim is made against the insured, the insurance company will assign an adjuster to investigate the claim and settle it within the policy limits, if possible. If settlement of the claim does not occur, and a suit is filed, then the insurance company will hire and pay for an attorney to defend the insured against this suit. There are certain limitations imposed by law on when this coverage is applicable. For example, an injured person must generally sustain a permanent injury, significant scarring, death or loss of an important bodily function before he or she is entitled to recover noneconomic damages (e.g. pain and suffering) under this type of coverage.
Uninsured Motorist Coverage
This coverage is optional and is designed to pay the insured for bodily injury damages caused by the negligence of an uninsured or underinsured motorist. It may also apply in situations where there is a "phantom vehicle". That is, if you are injured by the negligence of a vehicle that leaves the scene of the accident, then this type of coverage may apply to substitute, in a sense, for the liability coverage that the uninsured or phantom vehicle should have in place. In certain situations, uninsured motorist coverage may also apply to passengers in a vehicle who are not named insureds on the policy.
Uninsured coverage is an important type of insurance because of the fact that there are so many motorists who do not carry bodily injury liability insurance. Or if they do carry liability insurance, the limits are insufficient to compensate an injured party for the full extent of his or her damages. The specific terms of this type of coverage are defined by the insurance policy and case law. Therefore, different insurance policies may treat certain aspects of this coverage differently. It is important to read your policy.
Collision Coverage
Collision coverage is designed to pay an insured person for damage to his or her vehicle involved in an accident. Generally, there is a deductible associated with this type of coverage which can vary anywhere from $100.00 to $1,000.00. Therefore, it is generally advisable to pursue the property damage claim against the at fault driver's insurance company, if possible, instead of making a claim under the collision coverage. However, collision coverage may be the only way to have the vehicle repaired quickly if there is a dispute as to liability between the insurance companies.
Comprehensive Coverage
Comprehensive coverage generally applies to vehicular damage sustained by reasons other than a motor vehicle accident. For example, if your vehicle is scratched while in a parking lot, is damaged by fire, theft, water, or is otherwise vandalized, then this coverage should apply. There is generally a deductible associated with this coverage as well. Your policy should be reviewed carefully to determine how the insurance company will determine the value of the damages.
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As you can see, there are several different types of automobile coverages which are available to most policyholders. Additionally, each of the coverages generally has its own exclusions and limitations. These exclusions and limitations are usually set forth in the policy and have also been defined by court decisions. Finally, there are also certain conditions that must be met before a claim can be brought or paid under the various types of coverages.
Please feel free to contact our office if you have any questions after reviewing this summary. It is intended to be a guide and a summary only. Each claim and/or policy will have to be evaluated on it's own merits.
