Nearly one in four drivers in Florida is uninsured, according to an estimate by the Insurance Research Council, a non-profit division of the Insurance Institute of America and the American Institute for Chartered Property Casualty Underwriters. This is 50 percent above the national average of one in six drivers lacking insurance and drastically higher than the uninsured rate boasted by Massachusetts, the lowest in the country at one in 100 drivers. In fact, only four states top Florida in the percentage of drivers without insurance: Oklahoma, Alabama, Mississippi and New Mexico.
Of course, ranking fifth in the nation for uninsured drivers is nothing to brag about, and the problem is even worse when considering the large number of drivers who are underinsured, as opposed to simply uninsured.
Under Florida law, drivers are only required to carry basic insurance coverage for their own injuries and for property damage that they cause to another person's vehicle. Unfortunately, drivers are not required to buy insurance to cover bodily injuries that they may cause to other people. Accordingly, while these drivers are technically insured, their insurance coverage is of little help to anyone they may injure in an accident, and therefore they are regarded as underinsured.
Insured Drivers at Risk Too
The problem of uninsured and underinsured drivers affects everyone, including responsible drivers who have properly insured their vehicles. This is because an insured driver may still have difficulty recovering damages for injuries sustained in an accident caused by an uninsured or underinsured driver.
Even though Florida uses a "no-fault" insurance system, no-fault benefits apply only to certain relatively small claims of less than $10,000. This system was designed to streamline the claims process and reduce the number of lawsuits filed over car accident injuries. In a no-fault system, injured drivers can make claims with their own insurance companies to cover the expenses associated with their injuries, regardless of who caused the accident, as long as the expenses are less than $10,000.
When serious injuries are involved, however, no-fault benefits are often insufficient to cover the costs of an injury. Drivers injured in car accidents caused by someone else's negligence and whose injuries are beyond the scope of their no-fault limits may be able to file personal-injury lawsuits to recover additional compensation from the other driver's insurance company or from the other driver personally. This is especially effective if the at-fault driver has bodily injury (BI) coverage or has personal assets sufficient to cover the cost of the injured driver's injury-related expenses.
On the other hand, even if an at-fault driver is uninsured or underinsured and does not have significant personal assets, an injured person still may be able to recover for his or her injuries through his or her own insurance policy.
While it is not required by Florida law, many insurance policies include uninsured/underinsured motorist (UM/UIM) coverage. Unlike bodily injury (BI) coverage, which insures against injuries one may cause to other people, UM/UIM applies to injuries that one may suffer as a result of someone else's negligence.
Essentially, UM/UIM insurance fills in the gap between basic no-fault coverage and the other driver's ability to pay for one's injuries. UM/UIM coverage also may allow a person to recover from his or her own insurance company if he or she was injured in a hit-and-run accident and the other driver cannot be identified.
Preparing for the Unexpected
While no one wants to be in a car accident, the fact is that it happens to most of us at some point. With that in mind, it is important to be prepared for the very real possibility that you may be in an accident with an uninsured or underinsured driver - especially in Florida. Since the costs associated with a serious injury can easily exceed the $10,000 no-fault cap, it is essential to protect yourself and your family with UM/UIM coverage. Check your insurance policy to make sure you have this coverage, and add it right away if you do not.
Finally, if you have been in an accident with an uninsured or underinsured driver, contact an attorney as soon as possible. A personal injury lawyer with experience in car accident claims can help you explore your options and may be able to help you obtain compensation for your injuries.
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