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What Happens If I Reject Uninsured Motorist Coverage?
What Happens If You Reject Uninsured Motorist Coverage?
You absorb the loss yourself when the at-fault driver has no insurance. If you reject uninsured motorist coverage in Florida and an uninsured or hit-and-run driver injures you, you may have no coverage for medical bills beyond PIP, lost income, or pain and suffering. Because Florida does not require most drivers to carry bodily injury liability coverage, many at-fault drivers have nothing available to pay for your injuries.Key Takeaways about Uninsured Motorist Coverage in Florida
- Florida insurers must offer uninsured motorist coverage with bodily injury liability policies, but drivers can reject it in writing.
- Uninsured motorist coverage pays for injuries caused by a driver who has no insurance or not enough insurance.
- Rejecting uninsured motorist coverage can leave an injured person with only PIP benefits after a crash caused by an uninsured driver.
- Florida allows stacked uninsured motorist coverage, which can combine limits across multiple insured vehicles.
- A rejection or selection of lower limits generally carries over to renewal policies unless the policyholder requests a change in writing.
The Importance of Uninsured Motorist Coverage
The number one reason drivers in Florida reject UM coverage on their auto insurance policy is that they think it costs too much, and they want to save money. But as an insured driver, have you ever looked to see how much money UM coverage really adds to your policy? Although the price can vary for many reasons, one of which is the driver’s risk factors, it is often a modest addition to a policy. If you have ever been injured in an auto accident, you will know that this is a very inexpensive way to protect yourself financially. UM coverage is generally very affordable and should be regarded as one of the most important coverages under your auto insurance policy.Florida’s High Rate of Uninsured Drivers
In Florida, statistics are not on your side. One in five drivers in Florida is on the road with little to no insurance at all, which makes uninsured Florida drivers a real risk on every commute. If you, or your passenger(s), are injured in an accident by an uninsured driver, your minimum No Fault Personal Injury Protection Coverage (PIP) will be exhausted just by a visit to the emergency room. How will you pay for the damage to your vehicle, ongoing and future medical treatment, hospital bills, lost wages, and pain and suffering if you do not have UM insurance? This is one of the main reasons we recommend drivers think again before rejecting UM coverage. If you do have UM coverage, you will be better covered financially for your injuries. The process after being injured in an accident with an uninsured motorist can look different from a typical crash claim. Already hurt by a driver with no insurance? You may still have options, even if you are unsure what your policy includes. A Tampa car accident lawyer at our firm can review your coverage for free and explain what may be available.How Uninsured Motorist (UM) Coverage Works
In Florida, uninsured motorist coverage applies to bodily injury. It is intended to replace the bodily injury liability coverage that the at-fault driver should have purchased but did not. Damage to your car from an uninsured driver is usually handled through your collision coverage instead. Bodily injury coverage is important for drivers who do not have high PIP limits. Make sure to check your PIP limit, as the minimum policy pays at most $10,000, and only $2,500 for medical care if no emergency medical condition is found. If you choose to reject UM coverage, you will be stuck paying the difference out of your own pocket.What Does Uninsured Motorist Coverage Pay For?
Uninsured motorist coverage pays for the losses the at-fault driver’s insurance would have covered if they had enough of it. Under section 627.727 of the Florida Statutes, it protects insured people who are legally entitled to recover damages from an uninsured driver. That can include:- Medical bills beyond what PIP pays.
- Lost wages and lost earning ability.
- Pain and suffering, when Florida’s injury threshold is met.
Uninsured and Underinsured Motorist Coverage: What’s the Difference?
Uninsured and underinsured motorist coverage are part of the same protection in Florida. Uninsured means the at-fault driver has no bodily injury coverage, while underinsured means they have some coverage, but not enough to pay for your injuries. Underinsured claims are common here. Florida’s minimum insurance requirements do not include bodily injury liability for most drivers, and many who do carry it choose low limits. In an underinsured claim, you generally pursue the at-fault driver’s policy first. Your UM coverage can then help with losses that exceed those limits.
How Does UM Stacking Work in Florida?
Stacking lets you combine the uninsured motorist limits for each vehicle on your policy. If you insure two cars with $50,000 in stacked UM coverage each, you may have up to $100,000 available after a crash. Florida law provides stacked coverage unless the policyholder rejects it in writing or chooses non-stacked coverage, which usually costs less. Non-stacked coverage generally limits you to the UM limit on one vehicle. The difference matters most in serious crashes. Stacking can significantly increase the coverage available for a family with several cars.How to Reject Uninsured Motorist Coverage, and How to Add It Back
Florida requires that any rejection of UM coverage, or selection of limits lower than your bodily injury limits, be made in writing on a form approved by the Florida Office of Insurance Regulation. The form must explain the coverage and carry a bold heading warning that you are giving up valuable protection. Once you sign that form, your choice usually carries over when your policy renews. To add UM back or raise your limits, you generally need to request the change in writing. UM coverage is typically offered with bodily injury liability coverage. If your policy includes only the state minimums, ask your agent about adding bodily injury liability so UM coverage becomes available to you. If you are unsure what you signed, ask your agent for a copy of your UM selection form. Many people are surprised to learn they rejected this coverage years ago. There are strong reasons why you need uninsured motorist coverage, especially for families who spend a lot of time on the road.How a UM Claim Works With Your Own Insurer
A UM claim is made against your own insurance company, not the at-fault driver’s. Many people expect that process to be simple, but your insurer still reviews the claim closely and may question your injuries or their value. Expect the insurer to ask for medical records, proof of lost income, and possibly a recorded statement. Your policy may require you to cooperate, so it helps to understand what you are agreeing to before you answer questions. Timing matters in underinsured claims. Florida law sets a notice process that applies before you settle with the at-fault driver’s insurer, and settling too quickly can create problems with your UM claim. Florida law also gives policyholders a civil remedy under section 624.155 when an insurer fails to handle a claim in good faith. That remedy has specific notice requirements, which is one more reason to get guidance early.