What Is the Difference Between Uninsured and Underinsured Motorist Coverage in Florida?
When you purchase auto insurance in Florida, your insurance company will offer you additional uninsured motorist (UM) or underinsured motorist (UIM) coverage with your policy. UM/UIM coverage is not mandatory, so there is no legal penalty if you decline to purchase either. But it is generally a good idea to have some UM/UIM coverage as it can provide you with additional financial protection in the event of an accident.
What Is Uninsured Motorist Coverage?
Uninsured motorist coverage is basically just what it sounds like. It is insurance that provides coverage if you are injured in a car accident caused by a negligent motorist who has no auto insurance. Now, Florida law requires all registered vehicles to carry “bodily injury liability” (BIL) coverage of at least $10,000 per person or $20,000 per accident. This coverage kicks-in when a negligent driver causes an accident that injures someone else.
Yet according to Florida Highway Safety and Motor Vehicles, about 4.67 percent of all Pasco County vehicles are uninsured. So there is a risk that you may be hurt in an accident with an uninsured motorist. If that is the case, and your injuries are serious enough to exceed the scope of your own personal injury protection (PIP) coverage, you could then turn to your UM coverage for compensation.
UM coverage is also available when your accident is caused by an unknown at-fault driver. This most commonly occurs in “hit and run” scenarios. If someone hits you with their car and then speeds away, your insurance company will treat it as an uninsured motorist accident.
What Is Underinsured Motorist Coverage?
Underinsured motorist coverage addresses a slightly different situation. Say you are seriously injured in an accident caused by a negligent driver. You know who the negligent driver is, and they have insurance, but it is simply not enough to fully compensate you for your accident-related losses.
This scenario is sadly quite common. Keep in mind, most Florida motorists only purchase the minimum amount of BIL coverage required by law. This means the negligent driver may only have $10,000 in insurance coverage to pay for your medical bills, lost wages, and pain and suffering following an accident.
UIM coverage takes effect once you have exhausted the limits of the negligent driver’s insurance. Similar to UM coverage, UIM will pay for your personal injuries. However, neither UM nor UIM will pay for property damage, such as the costs of repairing or replacing your car. Those losses are covered by the negligent driver’s property damage liability (PDL) policy or additional collision coverage you purchase with your own auto policy.
Contact a Pasco County Car Accident Attorney
Dealing with insurance coverage is just one of many legal issues that can come up following a car accident. If you need legal advice or representation from a qualified Pasco County car accident lawyer, call Wendy Doyle-Palumbo, Esq., today at (727) 233-2134 to schedule a consultation. We serve clients in Hudson, New Port Richie, and Pasco County.
Source:
flhsmv.gov/insurance/uninsured-motorist-rate/