Did you know that one in eight drivers do not have motor insurance? This data from the Insurance Information Institute is alarming, especially if you’re driving on Miami roads, where you are at risk given the high rate of car crashes there. If any of these uninsured drivers collide with your car or those of your family members and cause serious injuries, they will have no insurance coverage to pay for the injuries or damages. This is where uninsured and underinsured motorist coverage comes into play. Miami drivers should consider this coverage type for added protection and avoid the headache of bearing the cost of drivers wreaking havoc even without an insurance policy.

 

Risks and Repercussions of Driving Without Insurance

Despite the Florida law requiring all Miami drivers to have insurance coverage, 26.7% of Florida drivers are uninsured. Driving without insurance in Miami is illegal, yet many drivers still get away with it. 

However, doing this is not without repercussions. It is a violation of state laws to drive without insurance, and all violations entail penalties.

Even if you have insurance coverage, some states require a minimum amount. If not, you are underinsured. The minimum coverage amount is set to ensure that your coverage will be adequate to cover potential expenses and bills associated with a car accident, whether for property damage or personal injury.

So, what are the risks of driving without insurance? Let’s discuss some potential consequences drivers face if they forego insurance.

Fines

All drivers without insurance coverage must pay a fine as a violation of Florida state laws. The fine varies state by state, but the fine for your first offense in Florida is $500 and $1,000 for subsequent offenses. 

Suspended License

Another potential risk of getting caught without insurance coverage is the suspension of your driver’s license. Like fines, the suspension terms vary state by state. The state authorities can suspend your license for up to three years if you drive without insurance.

Driving without car insurance.

Impounded Vehicle

Another potential risk when driving without insurance in Florida is to have your vehicle impounded. It depends on the extent of the car incident, but some authorities in Florida can impound your vehicle even on the first offense.

Higher Insurance Premiums

After getting caught without driver’s insurance, you will likely face higher premiums when you decide to purchase motor insurance coverage. A lapse in your policy is when your previous coverage expired to when you purchased a new one. Lapses are risk factors, so many insurance companies will charge higher premiums for those with certain risk factors like this one.

Costly Accidents

In addition to facing penalties and other fines, you could risk incurring a costly accident if you drive without insurance in Miami. Insurance coverage offers protection, especially in a no-fault state like Florida. It covers any damages and expenses associated with a car collision, even if you’re responsible. Therefore, driving without insurance and getting involved in a car accident means you must shoulder the financial burden and won’t share the liability with the other party.

 

Uninsured Motorist Coverage in Miami

Uninsured motorist coverage is a specific type of insurance policy that covers damage, medical bills, and legal costs associated with car collisions involving uninsured drivers. 

A 2022 report by the Insurance Research Council reveals that one in seven US drivers drive without insurance. It could be a dangerous combination if you live in an area like Miami with high rates of car collisions. If an uninsured driver hits your car and causes injuries, you won’t be able to file a settlement claim with their insurance provider because they have no coverage.

Uninsured motorist coverage can save you from this potentially challenging situation. It protects you in an accident, especially when an uninsured driver is at fault. Some states require drivers to obtain this type of policy, but even if Florida doesn’t, one must be obtained to give added protection on Miami’s roads. Hit-and-run drivers are considered uninsured motorists. 

So, what happens if an uninsured driver hits you and you don’t have this coverage?  Without uninsured motorist coverage, you won’t receive any payments to cover the damage or medical bills, even if the other party is at fault. 

Filing settlement claim after auto accident.

 

Underinsured Motorist Coverage in Miami

Florida state laws require all drivers in Miami to have an auto insurance policy. But even if a driver has one, it does not mean they have enough coverage. The state specifies a minimum amount requirement for insurance coverage. If another driver’s policy is below the limit, they’re underinsured.

Underinsured motorist coverage protects you from at-fault drivers who don’t have enough coverage to pay for the damages and injuries caused during a collision. Since the driver’s auto insurance policy is insufficient, you must pay the remaining amount once the at-fault driver’s policy has reached its limits. 

The policy initially covers bodily injuries, and you will have to pay for the damages to your vehicle. But your insurance company will pay for the remaining amount if you have underinsured motorist coverage. 

If you have an existing policy, you can add the underinsured motorist coverage for added protection. The payment to be made by your insurance provider will be up to the limits of your policy. This coverage can be divided into two parts: 

  • Bodily injury – It pays for any medical bills due to the injury sustained by the car accident.
  • Property damage – It pays for the repair costs of vehicle damage due to the car collision.

The minimum coverage amount for underinsured motorist coverage varies from one state to another. However, since most auto insurance policies are insufficient to pay for all costs, this additional coverage could help pay for the remaining amount. 

Conclusion

Whether you choose uninsured or underinsured motorist coverage, obtaining additional coverage for your auto insurance policy in Miami gives you peace of mind. You can avoid the potential headaches and financial burden if you could fall victim to a driver without insurance coverage. 

You can consult a car accident lawyer in Miami to help you pick the proper protection for your needs. Even if it is not required in Florida, this coverage can save you from risks associated with Miami’s high rates of car accidents.