Car Insurance: Do You Really Have Full Coverage?

Insurance companies, who like to make profits, may sell you “full coverage.” But beware! Full coverage legally is very different from what you should have practically. And not knowing the difference can land you in economic disaster.

Car insurance can feel like a confusing maze of options and jargon, but understanding your policy is critical. At Rader Law Group, we have helped thousands of clients receive financial compensation for car accident-related injuries.

Florida doesn’t require all types of insurance, but Uninsured Motorist (UM) and Bodily Injury (BI) coverage are crucial for your protection. Many insurance companies call their policies “full coverage,” but without UM and BI, you’re often left severely underinsured. Let’s break it down.

The Basics of Florida Car Insurance

In Florida, drivers are required to carry:

Personal Injury Protection (PIP): Covers up to $10,000 of your medical expenses, regardless of who caused the accident.
Property Damage Liability (PDL): Covers damage you cause to someone else’s property, like their car or home.

While these are the minimum requirements, they fall short in covering serious accidents, leaving many drivers financially vulnerable. That’s where optional coverages like UM and BI come in.

What is Uninsured Motorist (UM) Coverage?

UM coverage steps in when the at-fault driver has no insurance or not enough insurance to cover your medical expenses and other damages. In Florida, where roughly 1 in 5 drivers are uninsured, having UM coverage is vital. And in our experience, especially since Covid, even those who have insurance have very little, and certainly not enough, to pay for any significant injury. This is why you need UM. It covers you in the likely event that the person who rear-ends you has little, if any, insurance.

UM coverage can help pay for:

Medical bills exceeding PIP limits
Lost wages if you’re unable to work
Pain and suffering caused by the accident

It’s a safety net for those unpredictable moments when someone else’s lack of responsibility threatens your well-being.

What is Bodily Injury (BI) Coverage?

BI coverage protects you if you’re at fault in an accident that injures someone else. It can cover the other party’s:

Medical expenses for the injured party
Lost wages for the injured party
Legal defense costs if you’re sued

Florida doesn’t require BI coverage, but that doesn’t mean you should skip it. Without BI coverage, you could be held personally liable for substantial medical bills and damages, putting your assets—and financial future—at risk.

Why You Need UM and BI Coverage

Even though Florida doesn’t mandate UM or BI, here’s why these coverages are essential:

Protecting Yourself from Uninsured Drivers: With so many uninsured and underinsured drivers on Florida’s roads, UM coverage ensures you’re not left paying out of pocket for someone else’s negligence.
Covering Serious Injuries: PIP’s $10,000 limit is almost always insufficient for severe accidents. In fact, PIP often doesn’t even cover an ER visit. UM and BI provide the extra protection needed for extensive medical treatment.
Avoiding Financial Ruin: BI coverage shields your personal assets if you’re found liable for another person’s injuries, sparing you from devastating lawsuits.
Peace of Mind: Knowing you’re covered for worst-case scenarios allows you to drive with confidence.

The Impact on Personal Injury Law

From a personal injury perspective, the absence of UM and BI coverage can significantly complicate cases:

Limited Compensation Options: Without UM coverage, victims of accidents caused by uninsured drivers often struggle to recover adequate compensation for their injuries, leaving them to shoulder the financial burden alone.
Increased Liability Risks: Drivers without BI coverage face personal financial exposure in lawsuits. If you’re found at fault in an accident, you could be held liable for the injured party’s medical bills, lost wages, and pain and suffering—expenses that can quickly add up to hundreds of thousands of dollars.
Challenges in Legal Recovery: For personal injury attorneys, the lack of these coverages can limit the options available to secure compensation for their clients. This often results in prolonged litigation or reduced settlements. As important, if there’s no coverage you’ll likely find it difficult to find an attorney to represent you at all.

Investing in UM and BI coverage not only protects you as a driver but also ensures that if an accident occurs, victims—including yourself—have a pathway to recovery and justice.

How to Choose the Right Coverage

When evaluating your car insurance policy, consider the following tips:

Opt for Higher Limits: While the state minimums might be cheaper, they’re often inadequate for real-world accidents.
Bundle UM and BI: These coverages complement each other, providing a more comprehensive safety net.
Consider getting an umbrella policy with additional BI and UM coverage. A million dollars of additional coverage may only cost about $1,000/year.
Consult an Expert: An insurance agent or attorney can help you understand your options and choose a policy that fits your needs. If you’d like, we’d be happy to review your policy with you for free.

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