Not Buying Uninsured Motorist Coverage Can Be A Costly Mistake In Florida Since Nearly One-Fourth of Drivers Are Uninsured

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TAMPA, FL, July 12, 2011 — There are more than 640 traffic crashes reported each day in Florida, and there is close to a one-in-four chance that if an insured driver is injured, the at-fault driver is uninsured, according to an analysis of insurance claims by the Insurance Research Council (IRC). Driving without insurance is against the law, yet uninsured drivers are breaking that law every time they turn the ignition key. This is a danger to all drivers, particularly those who purchase only the minimum legal requirement for auto insurance and those who forego bodily injury liability and uninsured motorist coverage, said the Insurance Information Institute (I.I.I.).
 
Drivers without insurance or with inadequate insurance create problems for themselves and for insured drivers, with the IRC estimating that 24 percent of Florida drivers are uninsured. To be fully protected requires both bodily injury liability and uninsured motorist coverage.
 
This additional insurance protection covers you if the at-fault driver cannot afford to pay for the damage he or she caused. Bodily injury liability pays for death or serious and permanent injury to others when you are legally liable for an accident. It also covers others who drive your car with your permission. Uninsured motorist (UM) coverage includes protection from underinsured motorists (UIM). It reimburses you for injuries caused by three types of driver: uninsured motorists, drivers who have insufficient insurance and a hit-and-run drivers. Some states require UM/UIM coverage; in Florida it is an option, which does not mean this coverage is unimportant. “The mistake many people make is thinking that optional means unnecessary, and that is a costly mistake considering the high numbers of uninsured and underinsured drivers on the road,” said Lynne McChristian, Florida representative for the I.I.I. “You cannot gamble that the other driver’s insurance will be sufficient to take care of you if you are injured in a car crash, so bet on taking care of yourself.”

Florida law requires a minimum of $10,000 of personal injury protection (PIP) and $10,000 of property damage liability. If there is a loan on the car, the lender may require comprehensive and collision coverage to pay to repair any damage to the car while the owner is still paying for it. Florida’s statute on uninsured or underinsured vehicle coverage requires insurers to offer UM/UIM coverage to policyholders who purchase optional bodily injury liability. If drivers don’t want the UM/UIM coverage, they must reject it in writing. The fact that Florida legislators and insurance regulators think UM/UIM coverage is important is evident by a state law requiring insurers to make the following statement in the auto insurance policy in 12-point, bold type in all capital letters at the heading of the rejection form (statute 627.727):
 
“YOU ARE ELECTING NOT TO PURCHASE CERTAIN VALUABLE COVERAGE WHICH PROTECTS YOU AND YOUR FAMILY OR YOU ARE PURCHASING UNINSURED MOTORIST LIMITS LESS THAN YOUR BODILY INJURY LIMITS WHEN YOU SIGN THIS FORM. PLEASE READ CAREFULLY.”
 
The law also states that when the insured person signs the form and sends it back to the insurance company “it will be conclusively presumed that there was an informed, knowing rejection of the coverage.” And yet, too many people reject this coverage when they consider only the additional premium payment, rather than the value of the extra protection.
 
Prices for UM/UIM coverage depend upon the percentage of drivers who are uninsured in the state, and the fact that nearly one in four Florida drivers is uninsured affects rates. However, this extra protection brings significant benefits that may be well worth an additional premium that can range from $50 to more than $200 semi-annually, depending on the amount of coverage purchased. Coverage can be combined for each automobile insured on your policy (called stackable coverage) or it can be purchased for each vehicle separately with a coverage limit per person and per accident.
 
UM/UIM coverage is important because injuries suffered in a severe car crash could quickly surpass the PIP minimum limit of $10,000 for medical costs. While health insurance will usually pay for medical bills, health insurance will not pay for lost wages or compensate an injured driver or passenger for pain and suffering as a result of injuries in a car crash. UM/UIM will cover these expenses. Simply put, UM/UIM coverage makes your insurance company responsible for damages that would otherwise have been the responsibility of the at-fault driver, if that driver had purchased appropriate insurance.
 
For additional information, go to Facts and Statistics: Uninsured Motorists. You may also want to check the consumer guides on auto insurance from the Florida Department of Financial Services.
 
 
FOR GENERAL INFORMATION INSURANCE IN FLORIDA: www.insuringflorida.org
 
 
THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.

Insurance Information Institute, 4775 E. Fowler Avenue, Tampa, FL 33617, (813) 480-6446 | www.insuringflorida.org | www.iii.org

 

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