People are constantly asking the Drucker Law offices, main office located in Boca (also accident lawyer from Delray Beach and Miami, personal injury lawyer from Boynton Beach, Wellington, and Fort Lauderdale) about the different types of car insurance that are offered and which are required by law.
Generally, in Florida, owners of vehicles are required to have PIP coverage and property damage insurance. PIP coverage pays for 80 percent of your medical bills in an accident and 60 percent of lost wages, regardless of fault. This coverage generally caps at $10,000.00.
Property damage insurance pays to fix the other person’s car if you cause an accident. The law requires you to carry $10,000.00 of this coverage although you obviously can purchase additional coverage.
Bodily injury is not required, although if you drive without it and cause an accident you are required to do certain things like posting money or else your license will be suspended as well as other administrative penalties. The smallest bodily injury police is for $10,000.00 per person and $20,000.00 per accident and this coverage pays the other person for medical bills that are unpaid, lost wages over and above what PIP pays, as well as pain and suffering if certain proof is made. This is generally indemnity insurance. This means the insurance company indemnifies its insured, up to the coverage limits, against a judgment for bodily injury entered by someone who was injured as the result of the negligence of the insured or someone driving the insured vehicle. Indeed, the reason that indemnity insurance companies “settle” or resolve cases is that when a case resolves, the insurance company requires a release to be signed by the injured person and the release states that the injured person cannot sue the insured. Thus, the process is the proverbial “nipping in the bud” by preventing the injured person from suing for exchange of monetary settlement.
Collision coverage is also not required, although, if you lease or purchase a car by loan, those companies likely will require you to have such coverage. Regardless of who is at fault, collision coverage fixes your car when involved in an accident. It usually has a deductible so if it costs $5,000.00 to fix your car and you have a $500 deductible, then your insurance company pays $4500.00 towards your repair.
Comprehensive coverage basically fixes your car when it is damages by anything other than a car accident. (EX. damage by hurricane, theft, vandalism, etc.) This coverage, like collision, is not required by law but commonly required by contract (EX. lease, loan, etc.). This also usually has a deductible.
Uninsured motorist is also not required. Uninsured motorist coverage, which is also underinsured motorist coverage, pays you money when you are injured in an accident that is not your fault and the other person does not have any insurance, does not have bodily injury coverage, does not have enough bodily injury coverage, or in a hit and run situation. This pays, like bodily injury coverage to for the other person but when they do not have that coverage. Interestingly, if someone purchases bodily injury coverage the law requires the insurance company to offer you the uninsured motorist coverage and if you choose to reject it, you are to sign a rejection form stating that you are not electing this coverage and that you understand you are giving up important coverage. If the insurance company does not explain to you what you are giving up and you do not sign that form, then in the event of an accident, the insurance company may have to provide you with that coverage, even though you did not purchase it.
There is a lot of information here. It is recommended that before you purchase insurance you should speak with your agent and/or lawyer to make sure you understand in full the insurance that you are purchasing and the insurance that you are not purchasing. You should get as much insurance and as large of policy limits as you can afford but we are in tough economic times and many people are limiting the coverage that they purchase. So long as you have an understanding of what you are getting, you can make an educated decision for yourself and your family.
It is important to remember that such insurance coverage is covered by contract. There could possibly be exclusions in the policy and, furthermore, there could be differences in coverage between different insurance companies.
Every case is different and must be judged on its merits. It is a good start to get a free consultation regarding an accident case in case this happens to you. The advice contained in this blog is intended to be of general matter and not as to a specific situation. Please feel free to call a licensed Florida attorney to determine if and how Florida law applies to your injury case. We are here to help at Drucker Law Offices (561) 489 – 9199
