If you operate a vehicle in the State of Florida, you are required to carry a minimum of $10,000 in Personal Injury Protection (PIP) and Property Damage Liability (PDL) insurance in case you are involved in a collision. Along with PIP and PDL insurance, you may choose to purchase additional types of insurance and/or increase your coverage levels for your PIP and/or PDL insurance. On the latest segment of Lawyer Podcast, attorney Paul Reed explains why it is in your best interest to add Bodily Injury Liability (BIL) insurance to your Florida vehicle insurance coverage.
Florida’s No-Fault Insurance Basics
Florida is one of a handful of states that have a “no-fault” insurance system. Under Florida’s no-fault law, all motorists are required to carry a minimum of $10,000 in PIP and PDL insurance coverage. If you are involved in a collision, your own PIP insurance pays for 80 percent of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury, without regard to who was at fault in the crash. The no-fault system is intended to provide a quick and efficient method for people to obtain medical care for injuries sustained in a minor collision. If your injuries are more serious, and another party caused or contributed to the accident, you may need to pursue compensation for your injuries through a traditional personal injury lawsuit. It is precisely this scenario that should prompt drivers to carry sufficient Bodily Injury Liability (BIL) insurance.
Listen to Paul and Jason discuss this case on the LiveFeedReed podcast
What Is Bodily Injury Liability Insurance?
BIL insurance covers the at-fault vehicle’s owner or driver for damages caused to others as a result of a car accident. Unlike many other states, the State of Florida does not require drivers to carry BIL insurance. Without BIL insurance, you could be held personally liable for damages to another party if you cause a motor vehicle accident.
By way of illustration, imagine that you are involved in a collision with another party (Driver B) and you are determined to be at fault in the collision. Driver B sustained serious injuries, incurring medical expenses of $100,000 that were directly related to the accident. While Driver B’s own PIP coverage may have paid for up to $10,000 in expenses, Driver B’s injuries are serious enough to take him out of the no-fault system and into the traditional legal system in an effort to seek reimbursement for the cost of his injuries. Because Florida has a “non-joinder” statute, Driver B can sue you directly if he is unable to reach an out-of-court settlement with your insurance company. Without BIL insurance, your personal income and assets are at risk if that lawsuit is successful.
If you are named in a personal injury lawsuit based on injuries sustained in a car accident, your insurance company is required to provide you with an attorney; however, your insurance company’s legal and financial interests may not be aligned with yours. Once your insurance company has paid out the maximum payable under your PIP and/or PDL coverage, they are financially off the hook, meaning that they are not responsible for paying anything toward an excess judgment awarded to the injured party (Driver B) if your policy did not include BIL coverage. To ensure that you do not find yourself on that hook, make sure that your auto policy includes sufficient Bodily Injury Liability insurance coverage.
If you have additional questions or concerns about a Florida motor vehicle accident, contact the car accident attorneys at Reed & Reed.