Underinsured/Uninsured Motorist Coverage - What You Need To Know

If you are currently a Florida resident paying for car insurance, this topic is for you.  Do you know exactly what type of coverage you have?  It's somewhat surprising to me when I first meet with clients and ask about their insurance coverage to receive the answer that they don't know their coverage.  This is my first, point - you are paying for this insurance coverage, you should know what you're paying for.

The next surprising piece of information I sometimes receive is that the client does not have Underinsured/Uninsured Motorist (UM) Coverage.  In my opinion, this coverage is a must and here's why:

• Under Florida law, a motorist is only required to carry $10,000 of Personal Injury Protection (PIP) Insurance and $10,000 of Property Damage Insurance - they are not required to carry Bodily Injury Insurance.  This means if you're involved in an auto accident due to the fault of another driver, that driver is not required to carry insurance that would pay for your injuries and medical bills.  Having UM Coverage ensures that although the at-fault driver was not properly covered, you won't have to take care of the medical bills yourself.

• If you are involved in an auto accident dealing with a hit-and-run, you will not have an at-fault driver's insurance to deal with.  If you have UM Coverage, you will be able to make a claim to your insurance company to have your medical bills paid and be compensated for your injuries.

• If you are involved in an auto accident and the at-fault driver does have Bodily Injury Coverage, but it's not enough to cover your medical expenses and compensate you for your injuries, UM Coverage will be important.  If you do recover the maximum amount from the at-fault driver and it's not enough to cover your expenses, you can file a claim for your UM Coverage.

While adding UM Coverage to your insurance policy will make your rate a bit higher, it's worth the increase to have the added coverage should you need it.

Feel free to contact me if you have more questions about UM Coverage or how your insurance coverage applies in an auto accident.

www.cooleylawgroup.com

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