Uninsured drivers are a big problem and approximately 15% of individuals driving our nation’s roadways are either underinsured or not carrying any auto insurance at all. Collisions, hit and runs and other vehicle accidents involving uninsured motorists have resulted in more than $2.6B in claims and is costing insured drivers an additional $17 per month.
But the situation is even worse here in Florida where 1 out of every 5 Florida drivers is uninsured, the second highest number of uninsured motorists in the nation, according to the Insurance Information Institute. If that weren’t enough, here are four more reasons why you need to get Florida uninsured motorist coverage now.
Florida is a no-fault state which means that each driver’s claims are settled by their individual insurance policy, regardless of who was deemed at fault. However, insurance companies will normally subrogate the claim to the at-fault driver’s insurance company for reimbursement. So if you’re accident was caused by an uninsured motorist, you’re insurance company will deny your claim because there is no insurance company for them to collect from unless you have uninsured motorist coverage.
Of course, you could sue the uninsured motorist, but if they don’t have uninsured motorist coverage they likely will not have enough assets to cover any claims you may have against them. Also, Florida’s homestead laws prevent individuals from placing liens on a person’s primary residence in most cases.
With more than 3 million uninsured motorists clogging Florida roads, your chances of getting into an accident involving an uninsured motorist is very high. And, without uninsured motorist coverage on your auto policy you will have to pay any and all of your vehicle repairs out of your own pocket!
Let’s say you are involved in an auto accident and both you and your passenger sustained injuries requiring a trip to the emergency room. You have full coverage so you are expecting the insurance company to cover the medical expenses from your personal injury protection (PIP) policy. The only problem is the other driver who caused the accident is uninsured and your policy doesn’t have uninsured motorist (UM) coverage which means the insurance company will not pay your medical bills. Now you’re on the hook for paying the medical bills for you and your passengers.
The annual cost of uninsured motorist coverage is approximately $2.50 per $1,000 of coverage, depending on your vehicle and driving record. In other words, a $10,000 UM policy would add approximately $25 per year to your policy. This is a very small price to pay to avoid the frustration and expense if you happen to be involved in an auto accident caused by an uninsured motorist.
For more information about the need for uninsured motorist coverage or to get a quote for automobile insurance contact Cowart Insurance Agency today at 888-775-5788.