You’re a Gambler Without Maximum Automobile Coverage
Are you gambling every time you get behind the wheel?
Even if you’re not a frequent traveler to the Vegas casinos, you could be gambling if you don’t have enough automobile insurance coverage.
So, what is the recommended amount of coverage? Read on and find out.
Why Florida’s Minimal Required Coverage Is Inadequate
There are two factors working against you when it comes to car insurance in Florida:
- South Florida has a reputation for terrible drivers and high insurance fraud
- The minimal amount of coverage (which is what most people have) is not enough to protect you if an accident happens
Florida law requires drivers to only have the following minimal coverage:
- $10,000 liability coverage, which covers property damage paid to the other driver’s vehicle damage.
- $10,000 PIP (personal injury protection) which is like health insurance. However, in most cases this only pays for the injuries that the insured has incurred in the accident, regardless of fault. Since it’s not your insurance policy, it does not provide coverage for you in most situations.
Note that there’s no required coverage that you have to carry for paying the other driver’s injuries, lost wages, pain and suffering, etc.
The reason for this nuance is that Florida is a “no-fault” car insurance state. As a result, if another driver causes the accident, they will have to pay for your property damage (up to their coverage limits), but you’ll generally pay for your own medical bills. Sound fair? Not at all!!
Now, imagine that the accident was catastrophic, causing massive injuries. Or, what if the other driver has no insurance? These scenarios leave you financially vulnerable, so the next step is to determine the right type of insurance to have beyond Florida’s basic liability limits.
What Insurance Should You Have in Florida?
To avoid gambling with your family’s financial future, Attorney Shannon J. Sagan, P.A., recommends the following insurance coverage:
- Bodily injury coverage: If you’re at fault for an accident and get sued by the other driver, this insurance protects your assets. Coverage options vary, but it’s generally recommended to get coverage of at least $100,000 per person or $300,000 per accident.
- Uninsured / Underinsured motorist coverage: If the other driver has no insurance or not enough insurance to cover damages, your insurance company will reimburse you. There are also different forms of UM coverage such as stacking and non-stacking. Coverage options vary, but at minimum we recommended to get non stacking coverage of at least $100,000 per person or $300,000 per accident.
- Collision coverage: If you’re at fault or the other driver has no insurance, collision coverage pays to fix the damage to your vehicle and will usually do so quicker than the other driver’s insurance company will.
- Gap coverage: If your vehicle is newer, you might owe more than what it’s worth. In this instance, gap coverage will pay the difference between what you owe and what the car is worth at the time of the accident.
- Medical payments coverage: Referred to as “Med Pay Coverage” for short, this coverage steps in when your medical bills or lost wages exhaust PIP coverage.
- Umbrella policies: For additional coverage beyond what your insurance company provides, an umbrella policy provides higher limits, and therefore, more protection.
Questions about Car Insurance in Florida? Contact Us Today
Don’t wait for disaster to strike before finding out that you don’t have enough insurance. If you need guidance about choosing the right blend of comprehensive and collision coverages, call Shannon J. Sagan, P.A., at 1-800-FLA-LAWYER.
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