All Florida automobile owners must carry $10,000 of personal injury protection (PIP) and a minimum of $10,000 of property damage liability insurance. PIP insurance covers you regardless of whether you cause an accident or were not at fault. PIP pays 80% of reasonable medical expenses, 60% of lost wages, and $5,000 for death benefits up to the limit of $10,000. PIP covers you, relatives that live in your home, certain passengers, and others who drive your car with permission. Pedestrians and bicyclists are also covered if they are Florida residents. Property damage liability insurance pays for damage that you cause to the motor vehicles or property (fences, buildings, light poles, etc.) owned by others. Property damage coverage will apply even if you are driving someone else's vehicle.
Unfortunately, many Floridians carry only the bare minimum of coverage which is woefully inadequate. Often the medical bills and lost wages after a serious accident far exceed the $10,000 in PIP coverage, and that is why many also pay for Medpay coverage to supplement their PIP benefits. Some are unable to obtain medical care under their policies because they cannot afford to pay the $2,000 deductible that they selected to reduce their insurance rates. Since most newer vehicles would cost at least $20,000 or more to replace, the minimum property damage coverage of $10,000 may be inadequate. It is highly recommended that vehicle owners also carry bodily injury liability insurance (to pay for injuries to others when your car is involved in an accident). Even more importantly, everyone should carry uninsured motorist insurance (UM) which will compensate you and your family members or passengers who are injured due to the fault of another. With so many drivers carrying only the minimum insurance coverage (if they have any insurance at all), it is important that everyone purchase UM coverage to protect themselves.