PIP, or no fault coverage, is mandatory and carries a $10,000 limit in Florida but the term “no fault” can be confusing. It is used to describe an insurance system in which each driver’s own insurance company pays for their driver’s losses, regardless of who’s at fault and typically provides payment for a portion of the medical expenses and lost wages, as well as some out-of-pocket expenses. However, there are many types of losses suffered in more serious accidents that are not covered by your no fault benefits.
Uninsured motorist coverage becomes important when you or your passengers are injured in a accident caused by a driver who has no bodily injury liability insurance coverage, or insufficient bodily injury liability coverage. Your uninsured motorist coverage covers the following expenses: medical expenses and lost wages not fully paid by your PIP or no fault coverage, future medical expenses and future wage losses, and non-economic damages such as disability, pain and suffering, and the loss of ability to enjoy life. Also, this coverage ‘travels’ with you, providing protection for you and your family household members for these losses even if you are not in your own insured vehicle.