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Q

In Florida they have no-fault insurance (PIP) so why do I need uninsured motorist coverage?


A

The no-fault system is intended to lower the cost of auto insurance by taking small claims out of the courts. Each insurance company compensates its own policyholders for the cost of minor injuries regardless of who was at fault in the accident. These "first-party" benefits, which are a mandatory coverage, vary by state with no-fault systems.

The term "no-fault" can be confusing because it is often used to denote any auto insurance system in which each driver's own insurance company pays for certain losses, regardless of fault. In its strict form, the term no-fault applies only to states where insurance companies pay "first-party" benefits and where there are restrictions on the right to sue.

Drivers in Florida may sue for severe injuries if the case meets certain conditions. These conditions are known as the tort liability threshold, and may be expressed in verbal terms such as death or significant disfigurement (verbal threshold) or in dollar amounts of medical bills (monetary threshold).

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In Florida, PIP has very insignificant limits. Uninsured Motorist coverage covers bodily injuries to you and your passengers when the other person has no insurance or not enough insurance in a crash that is not your fault. Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance. In Florida, your Personal Injury Protection (PIP), or no-fault, benefits carry a $10,000 limit. So there may be instances when your no-fault benefits will not cover a loss in full.

If you don't have health insurance or you do not want to use your health insurance then you can buy Medical Payment or Medical Expense coverage. In addition you can purchase Uninsured/Underinsured Motorist Coverage (UM). It will protect you far beyond PIP. It will pay for 100% of medical bills, 100% of wage loss and for 100% of your pain and suffering up to whatever limits of coverage you buy. UM will protect your family from bad drivers. BI will protect you in case you cause injury in an accident and MP will give you additional medical coverage.

In Florida, Bodily Injury Liability isn't required, so UM will also help in these situations. PIP would pay first, but UM will give much better protection. In order to purchase UM, you must purchase equal or higher limits of Bodily Injury liability.

You can get an auto insurance rating price quote here to see how much a policy would cost you.

Comment Update: Medicare is not in the scope of this question. You should always have PIP and you should purchase Uninsured Motorist if you can afford it. Medicare may recognize PIP or UM as primary, but you can never have too much coverage.

Comment Update: You need Uninsured Motorist Bodily Injury to cover situations where medical costs are over the no-fault limits (the total typical PIP limit is currently $10,000).


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10 Responses to "In Florida they have no-fault insurance (PIP) so why do I need uninsured motorist coverage?"
  1. Visitor

    This site made the information clear. Thank you.

      Reply»  
  2. Visitor

    Uninsured golf cart... who pays for passengers injuries?

      Reply»  
  3. Anonymous

    This just doest make sense. If in Florida my insurance automatically has to pay for injuries sustained in an accident that makes whether or not the other person has insurance moot. So I fail to understand how uninsured coverage comes in to play.

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  4. Anonymous

    My collector car was hit from the rear at a traffic light. Slammed me into the car ahead and totalling my car which was insured for its vlue but can't be replaced because there are none around like it. All i'll get from my insurance company is what I paid for coverage. To find another is very hard and not to likely, what should I do?

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  5. Anonymous

    It explained in simple terms what no fault covered in Florida.

      Reply»  
  6. Anonymous

    Had helpful links to definitions, was succinct, and answered the question well.

      Reply»  
  7. Anonymous

    Great-thank you!

      Reply»  
  8. Anonymous

    The answer reflects many states PIP coverage. Who cares. It fails to address the fact that BI liability coverage is not required in Florida so someone who meets the Florida FR laws may be uninsured for BI liability coverage and it's another reason for UM coverage.

      Reply»  
  9. Anonymous

    Because it does not address the situation with medicare. Medicare sees the uninsured motorist coverage as a prior payer for any claims.

      Reply»  
  10. Anonymous

    Because you dont offer the question: "In Florida, must I carry uninsured motorist coverage if I carry PIP insurance."

      Reply»