What Is Uninsured Motorist Coverage in Florida?

Uninsured Motorist (UM) coverage is a component of vehicle insurance designed to provide financial protection for drivers in Florida. While Florida’s insurance laws require specific basic coverages, UM coverage offers an additional layer of security against unforeseen circumstances involving drivers who may not carry adequate insurance. Understanding this coverage is important for all vehicle owners, as it can help mitigate potential financial burdens after an accident.

Understanding Uninsured and Underinsured Motorist Coverage

Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage are distinct yet related types of protection within a vehicle insurance policy. UM coverage specifically addresses situations where an at-fault driver has no liability insurance to cover damages. Conversely, UIM coverage applies when an at-fault driver has some liability insurance, but their policy limits are insufficient to fully cover the injured party’s damages.

Florida operates under a no-fault insurance system, which mandates that all drivers carry Personal Injury Protection (PIP) insurance, as outlined in Florida Statute 627.736. PIP coverage typically pays for medical expenses and lost wages up to a certain limit, regardless of who caused the accident. However, PIP has limitations, usually providing up to $10,000 for medical expenses and not covering non-economic damages like pain and suffering.

Uninsured and Underinsured Motorist coverage extends beyond PIP, covering damages that exceed PIP limits or are not covered by PIP. These damages include medical bills, lost wages, future loss of earning potential, and compensation for pain and suffering. While not mandatory in Florida, insurance companies are required to offer UM/UIM coverage to policyholders. Declining this coverage means drivers may bear significant out-of-pocket costs if involved in an accident with an inadequately insured driver.

When Uninsured Motorist Coverage Applies

Uninsured Motorist (UM) coverage serves as a financial safeguard when the at-fault driver cannot compensate for damages. One primary instance is an accident caused by a driver who completely lacks auto insurance. In such cases, UM coverage allows the injured party to seek compensation from their own insurance policy.

UM coverage also applies in hit-and-run incidents where the at-fault driver cannot be identified or located. The policyholder’s UM coverage can step in to cover injuries and other associated losses when a claim against the at-fault driver’s insurance is unavailable.

UM coverage, encompassing its underinsured motorist (UIM) component, is utilized when the at-fault driver has insurance, but their policy limits are too low to cover the full extent of the damages incurred. For example, if medical bills and lost wages exceed the at-fault driver’s liability coverage, UIM can help cover the remaining balance. For UM/UIM coverage to apply, the other driver must be considered at fault for the accident.

Making a Claim with Uninsured Motorist Coverage

Initiating a claim with your Uninsured Motorist coverage involves several procedural steps after an accident. You should report the accident to law enforcement, particularly if there are injuries, fatalities, or property damage. Obtaining a police report provides official documentation of the incident, including details about the other driver’s potential uninsured status or if it was a hit-and-run.

After ensuring safety and reporting the accident, you must notify your own insurance company promptly. Policy terms require timely notification. When contacting your insurer, inform them of the incident and your intent to file a UM/UIM claim, providing all available details and documentation, including the police report.

Proving the other driver’s uninsured or underinsured status, or the inability to identify a hit-and-run driver, is a key part of the claim. This may involve providing evidence such as police reports, witness statements, and any communication with the other party or their former insurer. Your insurance company’s claims adjuster will then investigate the claim, assessing damages and determining compensation under your policy. If a satisfactory agreement cannot be reached, next steps may include arbitration or litigation to resolve the dispute.

Policy Options for Uninsured Motorist Coverage

When securing Uninsured Motorist coverage in Florida, policyholders have several decisions regarding how their coverage is structured. One choice is between “stacking” and “non-stacking” UM coverage, as addressed by Florida Statute 627.727. Stacked UM coverage allows policyholders to combine the UM limits for each vehicle on their policy, increasing the total available coverage in an accident. For example, two vehicles with $25,000 in UM coverage could provide $50,000. Non-stacked coverage limits recovery to the UM limits of the specific vehicle involved, without combining limits from other vehicles.

Selecting appropriate coverage limits is another consideration. While Florida law does not mandate UM coverage, it requires insurers to offer it up to the bodily injury liability limits chosen by the policyholder. Matching UM limits to your liability limits, or considering personal assets, can ensure adequate protection. Higher limits offer greater financial security against substantial medical bills and lost wages.

Policyholders also have the option to reject UM/UIM coverage entirely, but this decision carries financial risks. Florida Statute 627.727 outlines the requirements for rejecting this coverage, which typically involves a signed written rejection. Opting out means a policyholder would be personally responsible for costs exceeding their Personal Injury Protection (PIP) limits if an uninsured or underinsured driver causes an accident. Rejection forms must be signed each time coverages are changed.