Florida Auto Insurance Attorney
The typical personal automobile insurance policy in the State of Florida contains several different types of coverage. It is extremely important for the consumer to fully understand and appreciate the different types of coverages afforded in the State of Florida. The following is a brief description of the basic coverages:
- Personal Injury (PIP-No Fault Coverage) — Personal Injury Protection is a coverage which provides payment for the injured parties' own medical expenses and lost wages incurred as a result of an automobile accident. The typical policy pays for 80% of an injured parties' medical expenses and 60% of their lost wages (up to $10,000.00). These payments are made without regard to fault. In addition, PIP coverage also contains a death benefit. Typically, PIP benefits are available for named insureds and their resident family members.
- Liability Coverage — Liability coverage protects insureds from legal liability for bodily injury or property damage sustained by others as a result of the negligence of an insured. Pursuant to the typical liability insurance coverage agreement, the insurance company agrees to provide coverage for, and defend its insured against all claims for liability. The typical liability policy includes separately stated coverage amounts for both bodily injury liability and property damage liability. In the normal scenario, an insured will pay separately stated premiums for these coverages.
- Medical Payments Coverage — Unlike PIP, which is a statutorily required coverage, medical payments (med pay coverage) is a voluntary coverage. The basic purpose of medical payments coverage is to supplement PIP benefits to ensure that an insured's medical expenses are paid in full up to the extent of the coverage afforded. In addition, medical payments coverage provides coverage for certain injury situations that are not included under your basic PIP policy of insurance.
- Uninsured Motorist Coverage — Uninsured motorist coverage, which is generally referred to as UM coverage, is arguably the most important voluntary coverage that is available in the State of Florida today. UM coverage provides benefits up to the policy amount for damages that an insured is legally entitled to recover due to the negligence of another motorist who is either a) uninsured for liability, or is b) insured with liability insurance, but whose limits are inadequate to fully compensate the injured person. All insurance companies are required to offer uninsured motorist coverage as part of their automobile insurance policies, and an insured who purchases liability coverage must sign a written rejection of uninsured motorist coverage in order for such coverage not to be part of the policy of insurance. Because of the increasing percentage of uninsured motorists who are driving on the highways of Florida today, uninsured motorist coverage is commonly considered to be essential to those persons who are seeking to be "fully covered".
- Additional Coverages — The insurance industry in the State of Florida offers additional voluntary coverages. Physical damage coverage is a type of coverage, which by its terms, provides benefits to the insured for physical damage to a vehicle owned by the insured. The benefits are typically payable regardless of fault. Physical damage coverage may be generally classified as either comprehensive or collision. Comprehensive coverage is commonly referred to as an "all-risks policy", which covers for perils other than those resulting from an actual collision. Examples would be fire, theft, larceny, malicious mischief or vandalism. Under collision coverage benefits are payable for losses sustained as a result of a collision or impact with another vehicle or object. Another type of voluntary coverage is called Extended PIP, which increases the benefits paid for medical expenses from 80% to 100%, and for lost wages from 60% to 80%. Lastly, most insurance companies offer coverages which will reimburse an insured for towing expenses, and rental car expenses in case of an accident which renders the insured's vehicle inoperable.
For more information, contact a Florida auto insurance lawyer at Greenberg & Stone, P.A.
