Florida Underinsured Motorist Claims and Policy Limits
A Florida underinsured motorist claim may provide additional compensation when an at-fault driver’s liability insurance isn’t enough to cover your injuries. Payment isn’t automatic: You must have applicable coverage and support your claim with evidence of the driver’s fault and your losses.
A liability settlement can also affect your ability to pursue underinsured motorist benefits. Before you sign a release, understand the notice procedure that protects your claim.
Key Takeaways
- Underinsured motorist coverage may apply when the responsible driver’s bodily injury limits fall short of your covered losses.
- Your own policy, a household member’s policy, or coverage associated with a vehicle may need review to determine whether you’re insured.
- A policy-limit offer doesn’t necessarily account for future care, lost earning capacity, or every available source of coverage.
- Florida law provides a procedure for notifying underinsured motorist insurers before a qualifying liability settlement.
- The insurer can dispute fault, the extent of your injuries, or the amount owed, even when the other driver’s limits are low.
When Liability Insurance Falls Short
The driver’s bodily injury liability coverage is one potential source of payment after a crash. It can compensate an injured person for supported losses the insured driver is legally responsible for causing, up to the available limits.
A serious injury can exceed those limits. Hospital care, surgery, rehabilitation, and time away from work can add up before a patient knows whether further treatment will be necessary. Meanwhile, several injured people may have claims against the same policy.
A liability offer at the policy limit may resolve the claim against the driver, but it doesn’t necessarily cover all your losses. Our discussion of Florida policy limits and multiple claimants explains how competing injury claims can affect the insurance available.
Florida doesn’t require every private driver to carry bodily injury liability insurance in every situation. If the driver has no coverage, uninsured motorist benefits may be relevant. If the driver has coverage that isn’t sufficient, the claim generally involves underinsured motorist benefits. Both are commonly addressed under the UM portion of an auto policy.
How Florida Underinsured Motorist Coverage Works
UM coverage can pay eligible injury damages when a covered person is legally entitled to recover them from an uninsured or underinsured motorist. The claim depends on the policy, the circumstances of the crash, and proof of the losses.
Coverage and written rejection
Under Florida law, certain motor vehicle liability policies with bodily injury coverage generally must include UM coverage unless a named insured rejects it in writing on behalf of all insureds. The statute also addresses the amount of coverage and the selection of lower limits.
A declarations page can identify the coverage listed on a policy. The complete policy and any applicable rejection documents can also matter if an insurer says coverage doesn’t apply.
Who may have a claim
The person injured in a crash isn’t always the person who bought the relevant policy. A policy may cover a named insured, certain family members, or other occupants, depending on its language and Florida law.
Passengers should consider both the coverage associated with the vehicle they occupied and any other policy that may apply to them. Our guide to Florida passenger injury claims discusses the separate questions that can arise when a passenger is hurt in a driver’s car.
PIP, Vehicle Damage, and UM Are Separate Claims
Florida personal injury protection, or PIP, pays qualifying benefits without requiring proof that another driver caused the crash. Subject to statutory conditions and limits, it generally pays 80% of qualifying medical expenses and 60% of lost income.
Initial qualifying medical services generally must begin within 14 days of the crash. Medical benefits may be limited to $2,500 without a qualifying emergency medical condition determination.
UM coverage addresses a different question: whether an applicable policy pays eligible injury damages the responsible driver cannot fully cover. PIP doesn’t decide fault or pay for vehicle repairs.
Property damage liability insurance or your own collision coverage may address damage to your car. Collision coverage depends on its terms and deductible. You generally can’t receive duplicate compensation for the same expense through separate claims.
Motorcycle cases require particular attention. Ordinary Florida PIP doesn’t automatically cover a rider’s injuries. Our explanation of Florida motorcycle PIP coverage describes that distinction.
What an Underinsured Motorist Claim May Include
The value of a claim depends on supported losses, the law, and available coverage. A low liability limit alone doesn’t establish the amount your UM insurer must pay.
Medical costs and income losses
Medical expenses can include emergency treatment, hospital care, rehabilitation, and other necessary care connected to the crash. A claim may also include future treatment when medical evidence supports it.
For lost income, pay records and work restrictions help show the time you missed and its financial effect. If an injury limits your ability to return to your former work, evidence of your job duties and ongoing restrictions may support a claim for reduced earning capacity.
Pain and suffering
In covered Florida motor vehicle cases, recovery for pain, suffering, mental anguish, and inconvenience generally requires an injury that meets the state’s serious injury threshold.
Qualifying categories include permanent injury within a reasonable degree of medical probability, significant and permanent loss of an important bodily function, and significant permanent scarring or disfigurement. Medical records can help establish the nature and duration of an injury, but a diagnosis alone doesn’t settle every question about damages.
Keep a record of activities your injuries affect, including sleep, driving, household tasks, or work. Those notes can supplement medical evidence by showing how the injury affects your daily life.
Protect Your UM Claim Before Settling
A release can resolve claims against the at-fault driver. Before signing one, address how the settlement affects every applicable underinsured motorist claim.
Florida Statutes section 627.727 provides a procedure for a proposed settlement that won’t fully satisfy an injury or wrongful-death claim and creates an underinsured motorist claim.
Send written notice to the insurers
The statute calls for written notice of the proposed settlement to all underinsured motorist insurers providing coverage. The notice must be sent by certified or registered mail.
This step gives each insurer an opportunity to address its subrogation rights, which are rights to pursue reimbursement from the responsible party. Keep the settlement offer and proof of mailing and delivery with your claim records.
Allow for the 30-day response
Each underinsured motorist insurer has 30 days after receiving the notice to consider authorizing the settlement or retaining its subrogation rights.
If an insurer authorizes the settlement or doesn’t respond as required, the claimant may finalize the settlement and release without prejudicing the underinsured motorist claim. If the insurer refuses permission to preserve subrogation, it must pay the amount of the liability insurer’s written offer within 30 days after receiving notice.
The wording of a release matters. A Florida injury attorney can address the statutory procedure and the terms of the proposed agreement before you sign.
Evidence That Can Support Your Claim
Your UM insurer can examine the same issues that arise in a claim against the other driver. It may dispute how the crash occurred, whether the crash caused a particular injury, or how much future care will cost.
Preserve the crash report, photographs, witness contact information, and any available video. Vehicle damage can also help explain the direction and force of an impact. If a business or another party may have footage, an attorney can request that it be preserved before it is overwritten.
Medical documentation should connect your symptoms and treatment to the collision. Keep discharge instructions, imaging results, therapy records, prescriptions, and bills together. Tell your treating providers about symptoms that persist or change.
For financial losses, retain pay statements, missed-work records, receipts, and written job restrictions. If the insurer questions a future expense, a treating provider’s recommendations can help explain why additional care is needed.
Be accurate when describing the collision. If you don’t know your speed or the distance between vehicles, say so rather than guessing.
How Shared Fault and Deadlines Affect a Claim
Florida’s comparative negligence rules can reduce damages based on an injured person’s share of responsibility. In covered negligence actions, a person found more than 50% responsible generally cannot recover damages.
An insurer’s proposed fault percentage isn’t a court ruling. Roadway evidence, witness accounts, and video may support or challenge the insurer’s position. For example, an allegation that you could have avoided a collision needs evidence about the time and space available to react.
Deadlines also require attention. For many Florida negligence claims arising on or after March 24, 2023, the general lawsuit deadline is two years. Florida’s limitations statute contains different periods for different actions, and the applicable deadline depends on the claim and its circumstances.
Don’t assume that ongoing insurance negotiations stop a filing deadline. An attorney can identify the claims that need protection while the insurance investigation continues.
When to Speak With a Florida Injury Attorney
Legal help can be useful before a policy-limit settlement, particularly when multiple people were injured or the available coverage is unclear. An attorney can investigate the driver’s liability policy and other potential sources, including coverage associated with a vehicle owner or employer when the facts support it.
A lawyer can also address a disputed injury valuation, request evidence, and communicate with insurers about the proposed release. These steps matter when your treatment is ongoing and the long-term cost of the injury remains uncertain.
At Avard Law Offices, we offer free consultations for Florida personal injury matters. Bring the records you have, including insurance correspondence and the crash report number. You don’t need a complete file to discuss your options.
Frequently Asked Questions
Does a policy-limit offer guarantee a UM payment?
No. A liability offer can show that the other driver’s available coverage is limited, but a UM claim still requires applicable coverage and proof of fault and eligible damages. The insurer may also dispute the amount owed.
Can I pursue a claim if the other driver has no bodily injury insurance?
You may have an uninsured motorist claim if an applicable policy covers you. Other responsible parties or insurance policies may also be relevant, depending on the crash.
Can a passenger make an underinsured motorist claim?
A passenger may be covered under an applicable policy. The answer depends on insured status, policy language, and the circumstances of the collision.
Should I wait until treatment ends to get legal advice?
You don’t have to wait. Early advice can help protect evidence and address a proposed settlement while you continue receiving care.
Protect the Claim Before Signing
When liability limits fall short, applicable UM coverage may provide another source of compensation. The amount available depends on coverage and evidence, not the size of the other driver’s policy alone.
Before accepting a settlement, give your UM claim the attention it deserves. A review of the offer and release can help protect your options while your losses are assessed.