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FAQ - Regarding Automobile Insurance

What coverage is required by Florida law?

Every owner or registrant of a motor vehicle (other than a motor vehicle used as a taxicab, school bus or limousine) registered in the state of Florida must be covered for $10,000 in Personal Injury Protection (PIP) and $10,000 in Property Damage Liability. This coverage is required by Florida law.

PIP, also referred to as No-fault Coverage, is a legal requirement in Florida. Regardless of who is at fault, PIP coverage provides medical, disability and death benefits for persons injured or killed in an accident up to the policy limits. A minimum of $10,000 in PIP coverage is required although higher limits may be purchased through some insurance carriers.

PIP pays 80% of all necessary and reasonable medical expenses incurred as a result of a covered injury, 60% of wage loss and all reasonable expenses for replacement services (such as, childcare, housekeeping or yard work) up to the $10,000 policy limit. PIP also pays reasonable mileage or expenses for transportation to and from doctors' offices for medical treatment. All PIP payments are made by your own insurance company regardless of whose negligence caused the accident. That is why PIP is often referred to as "No-fault" coverage. PIP is payable for any injury which arose out of the use, operation or maintenance of a motor vehicle (not a motorcycle). PIP also covers bodily injury resulting from an accident involving a motor vehicle to:

     1) You while in another person's vehicle.

     2) Your child who lives in the same household if that child suffers an injury while riding
          on a school bus.

     3) You as a pedestrian or bicyclist.

     4) Residents of your home.

     5) Certain passengers who do not have PIP.

     6) Certain licensed drivers who drive your vehicle with your permission.

PIP may also be offered with a deductible, which reduces the amount of coverage and increases your out-of-pocket expenses if you are injured in an accident. All PIP benefits are subject to the deductible, except the death benefit. We strongly recommend that you do not get a deductible on your PIP.

What is Medical Payments Coverage (MED-PAY)?

Medical Payments Coverage is optional coverage that will pay the 20% of medical bills that PIP does not cover. It is offered in various amounts.

Bodily Injury Liability (BI) pays for economic (actual medical and funeral) and non-economic (pain and suffering) damages for serious and permanent injury or death to others when you are legally responsible for an accident. Your insurance company will pay for injuries up to the limits of the policy and provide legal representation for you if you get sued. Your insurance company pays for injuries caused by you or members of your family who live with you, even if they were driving someone else's vehicle. It may also cover others who drive your automobile with your permission. The more assets you have, the more bodily injury liability coverage you should obtain because, if you do not have enough coverage to compensate the injured person for their damages, they may elect to forego your bodily injury liability coverage and make a claim against you personally.

Uninsured/Underinsured Motorist (UM) Coverage pays for "accidental" bodily injury, including death, when an insured sustains such injury as the result of an automobile accident and the legally obligated party does not have Bodily Injury (BI) Coverage, or does not have sufficient limits to satisfy the injury claim. This includes both economic (actual medical bills and other out-of-pocket expenses) as well as non-economic (pain and suffering) damages. In short, UM coverage allows you to collect from your own insurance company in the event that you are injured through the negligence of somebody who has little coverage or no bodily injury coverage. Uninsured/Underinsured Motorist Coverage may also be stackable. Stackable means that it can be combined with other UM coverage issued to relatives residing in your household and on other vehicles that you may own or occupy. We strongly recommend that you purchase as much UM Coverage as you can afford because there are many drivers on Florida roads with no Bodily Injury Liability Coverage. We also recommend that you purchase stackable UM Coverage if there is more than one vehicle in your household.

Yes. Just because you have health insurance doesn't mean you don't need UM Coverage. Your health insurance may cover your medical bills, but it will not compensate you for out-of-pocket expenses, wage loss or pain and suffering. In addition, most health insurance policies have subrogation rights. Subrogation is the right of an insurance company, based on contracts, to recover money from the injured party when the injured party recovers from a third party. In other words, your health insurance has a claim for reimbursement of all accident related medical bills paid under the policy.

The personal automobile insurance policy covers the named insured, spouse and relatives who reside with the named insured, providing all licensed drivers have been disclosed. Your insurance policy may also cover other drivers who have permission to use the automobile. In other words, if an insured loans their vehicle, they are most likely loaning their insurance policy as well. It the person using the automobile lives with the insured or has regular usage of the automobile, they must be added to the policy. Otherwise, the insurance company may cancel the policy and refuse to pay the claim. Some automobile insurance policies will not cover a person who is not listed on the policy. Read the policy carefully to be sure a permissive user of the vehicle is covered.

If the accident was not your fault, you should not be singled out for a rate increase. If your rates do go increase, it may be because the insurance company is raising rates for your whole region.

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PLEASE NOTE: This coverage definition is intended only as a guideline. All terms and coverages are defined solely by your policy.