Lowman Law Firm is happy to represent insurance claims. Many of our clients are often overwhelmed by the many different automobile insurance coverage options available and what they mean.
Common Types of Car Insurance Coverages
The following are the most common types of automobile insurance coverages, but please know these are general and may apply differently depending on your policy:
Personal Injury Protection (PIP)
Provides payments for a percentage of your medical bills related to the accident injuries up to a predetermined limit (often $10,000).
With proper documentation and verification from your employer, PIP may also pay a percentage of your lost wages. Often called “no-fault” coverage, PIP is paid by your insurance company regardless of who caused the crash. PIP is the only insurance coverage required by Florida Law.
Medical Payments Coverage (MPC)
Pays for medical charges incurred as a result of an accident. It generally pays 100% of the bill, but it has a lower limit than PIP. MPC is purchased through your auto insurance carrier and does not cover any lost wages.
Bodily Injury (BI)
This is coverage that compensates the injured person and is paid by the “at fault” driver’s insurance company. BI is the coverage that compensates the other party if a claim is made against you.
BI does not pay for your injuries or damages, although the other person’s BI coverage may provide compensation to you. Under BI coverage, you may recover for pain and suffering, inconvenience, mental anguish, and loss of capacity for the enjoyment of life.
It is this claim that an attorney is often retained by the injured person for representation against the insurance company. BI does not eliminate the possibility of a lawsuit against you, but higher BI limits can avoid having to pay money for injuries or damages you caused.
Uninsured/Underinsured Motorist Coverage (UM)
This is the most important coverage that protects you if you're injured in a car crash. If injured in an accident, your insurance company will provide coverage for you up to the amount of UM you have purchased.
UM is very important because Florida law does not require drivers to buy BI coverage. If the person who caused the accident does not have BI and you do not have UM, it will be very difficult, or impossible, to recover any finances relating to your injury.
If the person who caused the accident carries only minimal BI or not enough BI to cover your accident injuries, then MU will provide additional underinsured motorist benefits.