Uninsured/Underinsured Motorist Coverage

According to the Insurance Research Council, almost a quarter of Florida drivers do not have auto insurance. It is likely that more drivers only carry the bare minimum of coverage and would be unable to pay medical bills in the event they cause a car accident. You purchase UM coverage as part of your policy and if you are in an accident caused by someone who either does not have coverage or does not have enough coverage, your UM benefits will pay for medical treatment. Since the state of Florida does not require drivers to carry bodily injury insurance, which would pay for injuries they cause to others in an auto accident, it is particularly important to carry UM coverage.

There are two different types of uninsured/underinsured motorist coverage - stacked and unstacked. With stacked coverage, a policy holder can take the UM limits available on each car that is part of the policy and add them together. With unstacked coverage you would only be eligible for the UM coverage limit listed on your policy.

What does that mean in a real world context? If you have a policy that covers two different cars and has stacked UM coverage for $50,000, you would be able to claim up to $100,000 in benefits if you have need. If you have the same policy that covers two different cars but with unstacked UM coverage for $50,000, you would be limited to $50,000 in benefits in the event of a car accident. Stacked coverage would also apply in more situations than unstacked coverage.

For more information on Florida insurance, visit the Florida Association of Insurance Agents website.