The minimum requirement of automobile insurance in the state of Florida is $10,000.00 personal injury protection (PIP) and $10,000.00 property damage liability. Although the intent to require such minimums was to create stability and reduce litigation, in reality, these amounts are not enough to protect you and your loved ones while on the road.
All automobile insurance packages consider three major concerns:
1. Uninsured/underinsured coverage for you;
2. Bodily injury coverage for the other individuals involved in an accident;
3. Property damage coverage.
If you know anything about the prices of vehicles and property in Florida, you can guess that these minimums are nowhere near what the average person actually needs in the state. Remember, depending on the policy, you property damage limits must be sufficient to cover any vehicles you hit while at fault, as well as, your own vehicle.
When it comes to purchasing bodily injury and uninsured/underinsured coverage, it is important to be educated on what factors justify increasing the coverage.
Some common factors that justify adding more bodily injury coverage for the other individuals include your assets, your personal finances and your location. People with a higher net worth than average should protect this net worth with more coverage. Of course, your personal finances will dictate the amount that you can afford. Your location is important because different geographical areas have higher or lower instance of motor vehicle collisions.
When deciding an amount of uninsured/underinsured motorist (UM) coverage you would like to purchase keep in mind a couple of risks to not having enough. If a completely uninsured driver is at fault for an accident, UM is your ONLY avenue for compensation of any injury. That also applies if a hit-and-run driver strikes you, or someone that may have had insurance that accidentally lapsed. Without some form of UM, you may have only your PIP coverage to handle medical bills.