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We will examine two types of insurance: No Fault and Uninsured/Underinsured Motorist Coverage

No Fault

It's the Law: Florida's no-fault insurance mandates limited protection

Wednesday, August 27, 2003
By WILLIAM MORRIS, Special to the Eagle

Q: I was recently in a car accident. When I contacted my insurance company, I was told that my PIP coverage is supposed to pay for my injuries. That doesn't make sense, since the other driver was at fault. Can you explain?

A: Florida's automobile insurance laws have been a work in progress for more than 30 years.

Florida's original no-fault plan was adopted by the state Legislature in 1971. Since 1971, the law has frequently been revisited by the Legislature to change coverage and exceptions and to try to eliminate problems. Under current law, anyone who owns or operates a motor vehicle must carry minimum insurance or otherwise meet financial responsibility criteria by posting a bond or proving net worth in accordance with the statute. Since you have elected to carry insurance to meet the statutory requirements (as most people), my answer will be limited to statutory insurance requirements.

Motor vehicle insurance policies in Florida are required to provide no less than $10,000 in personal injury protection benefits. This insurance pays the medical expenses of the named insured, relatives residing in the same household, persons operating the insured motor vehicle, passengers in such motor vehicle and other persons struck by such motor vehicle and suffering bodily injury while not an occupant of a self-propelled vehicle. Eighty percent of covered medical expenses are paid (after the deductible under the policy) and 60 percent of lost wages may be paid. The maximum deductible under PIP insurance is $2,000.

PIP coverage is independent of fault. It is intended to be primary coverage, although it is not the only source from which your medical bills may be paid. Motor vehicle insurers may also offer medical payment coverage and other insurance protection that will pay your damages in excess of the PIP limits.

Read complete story at: Marco Island Eagle
URL: http://www.naplesnews.com/03/08/marco/d971564a.htm

Uninsured/Underinsured Motorist Coverage

Unfortunately, at this time the Florida Legislature does not require motorists to carry Bodily Liability. Bodily Liability insurance is the at-fault party's insurance that would pay for your additional medical bills, lost wages, and your loss of enjoyment of life in the event the party who hit you was at fault. The only way a motorist may protect him or herself from this event is to purchase Uninsured/Underinsured Motorist Insurance (UM/UIM). Insurers who sell PIP insurance MUST offer you UM/UIM insurance at the time you purchase your insurance. The purchase of UM/UIM insurance is highly recommended. Additionally, make sure your UM/UIM insurance is stackable for all vehicles in your household. Many of Florida's motorists are uninsured and purchasing UM/UIM is the best way to protect you and your family in the event of an automobile accident involving serious injuries.