WHAT IT MEANS TO HAVE “FULL COVERAGE” INSURANCE IN FLORIDA

Source: Personal Injury Lawyer | Abogado de Lesiones Omar A. Cardenas Blog

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I often hear people say “I have full coverage” when they tell me the type of automobile

insurance they have purchased. The term itself is a bit misleading, as most people think they are fully

covered for any loss. The truth is that “full coverage” often means that you are “fully covered” under the

law, i.e. the bare minimum of insurance coverage required under Florida law.

Florida law only requires that you carry Property Damage (PD) and Personal Injury Protection

(PIP). PD pays for damage you cause to other people’s property. PIP pays for your own medical

expenses and lost wages that directly result from an automobile accident, whether or not you were at

fault. For a detailed explanation of how PIP in Florida works, I urge you to read What to Expect From Florida’s New No-Fault (PIP) Law.

There are various automobile insurance coverage plans available in Florida that are not required

by law. These include Med Pay, Collision, Comprehension, Bodily Injury, and Uninsured Motorist. Below

are brief descriptions of each plan:

Med Pay: PIP coverage pays for 80% of your accident related medical expenses. Med Pay coverage

steps in and pays your 20% co-pay for medical expenses, and possibly helps pay for medical expenses

above the $10,000.00 PIP limit.

Collision: Collision coverage pays for the repairs to your vehicle if you were at fault, or if the at-fault

party was uninsured.

Comprehensive: Comprehensive coverage is similar to collision, but comprehensive coverage pays for

damage to your vehicle due to flood, fire, theft, and other circumstances not considered to be caused by

a “collision.”

Bodily Injury: Bodily Injury (BI) coverage is liability coverage, and it is crucial. If you cause an accident

which results in bodily harm to another person, you can be sued and found liable for their damages. BI

coverage will be used to pay for the victim’s economic damages (out of pocket expenses) and the

victim’s pain and suffering (if they can prove a permanent injury). If you get served with a lawsuit, your

insurance company will hire and pay for an attorney to properly defend your claim in court under your

BI coverage.

Uninsured or Underinsured Motorist: Uninsured or Underinsured Motorist (UM) coverage is just as

important as BI. UM coverage will “step into the shoes” of an at-fault party who carries no or too little BI

coverage, and if the accident that they caused results in your bodily harm. Too often I come across

accident victims with serious injuries and extremely high medical expenses who were hit by an

uninsured or underinsured driver. Sometimes these accident victims carry no private health insurance. If

you were one of these victims, without UM coverage, only $10,000.00 of your medical expenses would

be paid (under PIP), and you could be left with a mountain of medical debt and no compensation for

your injuries.

Do not make the mistake of thinking you are fully covered because someone else told you that

you have “full coverage.” Carefully review your insurance policy and contact your insurance company to

find out more about the available coverage plans and the associated premiums.