General Summary In Florida, vehicle owners may be required to purchase two types of auto insurance. The first type of auto insurance is outlined in Fla. Stat. § 627.736. It requires every person who registers a vehicle in Florida to provide proof they have personal injury protection (PIP) and property damage liability (PD), with minimum limits of $10,000 each. The second type of auto insurance requirement is defined in the Florida Financial Responsibility Law. It requires drivers who have caused accidents involving bodily injury/death or received certain citations to purchase bodily injury liability (BI) coverage with minimum limits of $10,000 each person and $20,000 each accident, referred to as split limits. Personal Injury Protection Coverage This is a mandatory coverage that includes the following expenses: Medical Expenses, Death Benefits, Work Loss and Replacement Services Expenses. The maximum limit of Personal Injury Protection is $10,000. It enables you to collect immediately for medical expenses and loss of earnings without waiting for the outcome of a lawsuit.
Here’s a breakdown of PIP Coverage:
Medical Expenses: pays up to 80% of all reasonable medical expenses which are medically necessary pursuant to Florida law.
Death Benefits: pays up to $5,000.
Disability Benefits: pays up to 60% of loss of gross income and loss of earning capacity per individual from their inability to work as result of injuries caused by the accident and 100% of replacement services
Tip: PIP does not apply to vehicles with less than four wheels. For example, PIP does not apply to motorcycles, mopeds, electric scooters, Bull dozers, Farm Tractors, etc.). Bodily Injury Liability This coverage protects you for injuries or death to someone else that you are legally liable for after a motor vehicle accident. This coverage not only covers the actual loss incurred; it can also provide coverage for your defense if you are sued. When referring to BI limits of liability, the first number represents the maximum amount of coverage you have for each individual injured in a given accident and the second number is the maximum amount of coverage available to all injured persons in that accident. Property Damage Liability Property Damage Liability pays for damage to other people’s property resulting from an accident caused by your auto for which you are legally responsible. It also covers your legal defense if you are sued as a result of an accident. If the property damages are high, your assets (including your home, savings and future wages) may be at risk. Property Damage Liability helps protect your assets by paying for the damage to the property. You should buy enough Property Damage Liability coverage to adequately protect your assets. Uninsured Motorist (UM) Coverage This coverage includes payments for certain medical expenses, lost wages, and pain and suffering, and is subject to the limitations of the policy. UM coverage is an optional coverage and includes payments for certain medical expenses, lost wages, and pain and suffering, and is subject to the limitations of the policy. Generally, Uninsured Motorist coverage protects against bodily injury damages caused by an at fault uninsured motorist, a hit and run driver, or a motorist with bodily injury liability limits less than your damages. What is Stacked and Non-Stacked UM coverage? Florida law requires that automobile liability policies include Uninsured Motorist (UM) coverage limits equal to the Bodily Injury Limit (BI) limits on your policy, unless you select a lower limit offered by the company or reject Uninsured Motorist coverage entirely. UM limits cannot exceed the BI limits on the policy. If you have Bodily Injury Liability coverage, you may select either stacked or non-stacked UM Coverage. Stacked UM Coverage allows for the policy limits for each motor vehicle described in your policy to be added together (stacked) to equal the total amount of UM coverage. Non-stacked UM Coverage is also offered at a lower premium than stacked UM Coverage. Under this type of coverage, you will only be entitled to the amount of UM coverage purchased for one vehicle.