What is Uninsured Motorist Coverage?
Michael Babboni
Insurance Coverage
A clause that is found in most United States automobile insurance policies is the uninsured motorist clause. This clause is a policy that states that a driver can receive damages for any injury he or she may receive due to an uninsured and negligent driver.What Does Uninsured Motorist Insurance Cover?
Uninsured Motorist insurance covers injuries and medical expenses that arise due to an accident that was the fault of the uninsured motorist, or the motorist whose insurance doesn’t cover what it is needed. The coverage is in place to protect you if you are involved in an accident with an at-fault driver that does not carry sufficient auto insurance or liability insurance.
Uninsured Motorist Coverage in Florida
In Florida, we recognize a no-fault insurance system which requires that every driver carries Personal Injury Protection (PIP) which can then compensate the insured driver for medical treatment regardless of who is found to be at fault of the accident.
PIP only covers the cost of medical treatment, lost wages, and other incidental costs that are involved with the medical expenses. PIP does not compensate for any pain and suffering endured due to the accident, any future loss of earnings, or the costs of future medical care. The coverage is often limited to $10,000 in medical and disability benefits as well.
You are not required by law to carry Uninsured Motorist Coverage in Florida if you carry bodily injury liability insurance, but the law does require the insurance company to provide this coverage unless you specifically reject it.
Stacked and Non-Stacked Uninsured Motorist Coverage
When you have stacked car insurance, your uninsured and underinsured motorist coverage limits are typically increased in relation to how many cars you are insuring. The increase in coverage, depending on the area you reside, can help pay for additional expenses such as post-accident and property expenses following an accident.
You can stack as long as you are insuring more than one vehicle on your policy. When you are involved in an accident, and you have three cars insured, you will be able to claim a much higher coverage limit than you would if you only had one car insured on your policy.
Stacked coverage allows for higher coverage limits, less capping, and no raising of liability limits. However, with stacked coverage, you may end up paying a bit more for uninsured and underinsured motorist coverage due to the added protection you are receiving.
Unstacked insurance is simply when the insurance policy is limited to one vehicle, and the coverage is treated separately, despite the number of cars you may be insuring. Therefore, the limit that was placed on the policy is all you will be able to claim following an accident. With unstacked insurance, you may find lower car insurance premiums that provide lower single accident limits, but the coverage you are paying for may prove to be too little and may not be effective at covering any post-accident costs due to the accident.
In Florida, it is essential that you carry the right car insurance because there is an especially large number of people that are currently uninsured or underinsured. Plus, it is a no-fault state, so you may find that additional coverage may be helpful when it comes to dealing with the aftermath and expenses of a car accident.