ARE YOU SELF INSURED?

Most drivers would say no, they have full coverage. However, many of those drivers are actually self insured and do not know it. Florida law requires mandatory insurance coverage consisting of personal injury protection (PIP) also known as no fault, and property damage liability. If you purchase the mandatory coverage you are actually self insured for liability, and here is why.  The only two required coverages provide coverage for 80% of the first $10,000 of your own medical bills, and coverage for damage to property such as the damage caused when you hit another vehicle.  What is missing and what are you essentially self insured for?  The answer is bodily injury liability, or the damage caused to the other driver or pedestrian.  When you are at fault in an accident you can be sued for the injury suffered by the other driver or pedestrian, and if you do not carry bodily injury liability coverage (BI) then you are essentially self insured. Under Florida law you are not required to carry BI coverage, and it is an optional coverage, but in my opinion an essential coverage.  What happens if you are hit by an uninsured driver, or a driver that carries only the mandatory coverage?  You have the option of purchasing uninsured motorist coverage (UM) that provides coverage for your injury caused by an uninsured or underinsured driver.  If you do not purchase UM coverage, then again you are self insured, and would have only your PIP benefits.  Does it make sense to be self insured? No it does not, however many Florida drivers are self insured and do not know it.  Be smart, speak with your insurance agent and see if you are self insured.