Insurance Gaps And What Happens After An Accident

South Florida roads are busy, unpredictable, and sometimes dangerous. While Florida law requires drivers to carry certain minimum insurance coverages, not everyone on the road has enough protection to fully cover damages after a serious crash. This is where insurance gaps come into play. For victims, talking to a Miami personal injury lawyer is key as these gaps can create major financial and legal headaches.

Why Drivers Have Insurance Gaps

An insurance gap simply means there’s a difference between what a policy covers and the actual expenses caused by an accident. Several factors contribute to these gaps:

• Minimum requirements are low. Florida only requires $10,000 in Personal Injury Protection (PIP) and $10,000 in Property Damage Liability (PDL). Serious accidents can quickly exceed these limits.
• No mandatory bodily injury coverage for all drivers. Unlike many states, Florida doesn’t require all drivers to carry bodily injury liability insurance, which pays for injuries they cause to others.
• Lapsed or cancelled policies. A driver may have started with coverage but lost it due to missed payments or policy cancellation.
• Low-cost, low-coverage policies. Some drivers choose the cheapest plan possible, which often has very low limits.
• Uninsured motorists. Other people drive without any insurance at all, despite state laws.
• Policy exclusions. Certain situations, like driving for a rideshare company without proper commercial coverage, can result in claims being denied.

Imagine this: You’re hit by another driver in Miami. Your car is damaged, you have medical bills from the hospital, and you miss work during recovery. But when you file a claim, you learn the at-fault driver’s insurance doesn’t come close to covering the costs.

In this situation, your own PIP insurance coverage will kick in first. This typically covers up to 80% of your medical bills and 60% of lost wages, up to $10,000. Next, you will turn to the at-fault driver’s policy, but if their policy limits are low, you may still have a big shortfall.

Drivers who opted to purchase Uninsured/Underinsured Motorist (UM/UIM) coverage will find that coverage helpful in paying for what the other driver’s policy doesn’t cover. Yet many Florida drivers decline this option to save money, leaving them financially vulnerable.

When a Lawsuit May Be Necessary

Should insurance not cover all damages, an attorney may advise you to pursue a personal injury lawsuit against the at-fault driver. Collecting from individuals without significant assets, however, can be challenging. An experienced Miami personal injury lawyer can identify all available sources of recovery, negotiate aggressively with insurers, and pursue legal action when necessary to bridge the financial gap.

Do you need help managing accident bills and securing the compensation you need to move forward? Florida’s insurance system leaves plenty of room for coverage gaps, and these gaps can turn a bad day into a long-term financial crisis. Without skilled legal guidance, accident victims may be left paying out-of-pocket for damages. Have a conversation with the lawyers at Spencer Morgan Law to protect yourself from loss. To schedule a consultation, simply call 305-423-3800.