Auto insurance in Florida can be a bit tricky. Be cautious of this when you are shopping for insurance.
To meet the state minimum requirements, all you have to carry is property damage liability of $10,000 and “no fault” or Personal Injury Protection.
Property damage liability will pay when you damage someone’s property with our vehicle. It can apply to another car, a house, a lightpole, etc. If you damage it your minimum limit policy will pay up to $10,000 to repair it.
“No Fault” or Personal Injury Protection is what protects you in the event you are injured in an accident. If you are injured in an accident, regardless of who is at fault, each of us has to pay the first $10,000 of our own medical bills. If you are injured in an accident, your Personal Injury Protection is the first and primary coverage to respond.
This is what you need to know about “no fault” coverage. It only pays 80% of your medical expenses. This means if you are injured in an accident you may still be required to pay 20% of the first $10,000 (per person) of your medical expenses. “No fault” also pays 60% of our lost wages if we cannot work due to our injuries. Lastly, it also acts as a life insurance policy in the event of a fatality. Regardless of what damages are claimed under this coverage the maximum amount paid out is $10,000.
Insurance companies know you shop for price when you shop for auto insurance. With this in mind, these companies will often only quote the state minimum requirement so that their premiums seem more appealing to us. In fact some will even give you an addtional $1,000 deductible on your Personal Injury Protection to lower your rate even more. This would mean, not only would you be responsible for 20% of the first $10,000 of your own medical bills, you would also have to pay the first $1,000 out of pocket before your policy begins to pay anything at all.
With this information in mind, who do you think pays the $1,000 deductible for your medical expenses? Who pays the additional 20% of medical expenses after that? Who pays if you have more than $10,000 in medical bills and lost wages? Who pays if you hit a vehicle that’s worth more than $10,000? your property damage maximum limit is $10,000? Not to mention if you hurt someone else in an accident, who do you think would be responsible for all of their medical bills and lost wages? You may even be forced to give up your driver’s license until you can pay these expenses.
