Florida Personal Auto Laws

Anyone who registers or drives a car in Florida must have PIP coverage of at least:

$10,000

Bill carries $10,000 in PIP coverage with a $500 deductible. One day, he accidentally crashes into a car stopped at a red light. The driver of the stopped car is miraculously free from injury, but Bill's medical bills from the collision come to $14,000. How much will Bill's PIP pay for his injuries?

10,000. after subtracting the deductible, Bill's eligible medical expenses come to $13,500. PIP will cover 80% of that amount ($13,500 x 0.8 = $10,800), but only up to its limit of $10,000.

What is the current minimum amount of liability coverage required by the state of Florida for a driver who is found to be at fault in an accident?

10/20/10. If a driver is at fault in an accident, he must be able to cover at least $10,000 for bodily injury to each person, up to $20,000 for all bodily injuries put together. Combined with the required $10,000 of property damage liability, these minimum limits look like this: 10/20/10.

In Florida, every driver must have $10,000 in property damage liability coverage and $10,000 in PIP in order to operate a motor vehicle. If the driver is in a wreck and is found to be at fault, how much liability coverage must the driver have for total bodily injury per accident?

20,000. If a driver is at fault in an accident, he must be able to cover at least $10,000 for bodily injury to each person, up to $20,000 for all bodily injuries put together.

Mark is driving along and looking for an address on the East side of Walker Street. As he squints to see the numbers posted on the buildings, he plows into the back of a car waiting at a stoplight. Both the driver and the passenger of the struck car are injured. The driver suffers $70,000 in bodily injury, the passenger suffers $65,000 in bodily injury, and the vehicle Mark hit sustains $30,000 in damage. Mark has liability coverage with split limits of 50/100/25, and both injured people carry the minimum PIP for Florida. How much will Mark be responsible for out-of-pocket after this accident?

20,000. Mark's limits are $50,000 per person, $100,000 for all injuries, and $25,000 for property damage. The other driver's PIP will pay the first $10,000 of his injuries, leaving Mark liable for $60,000. Mark's policy will pay up to $50,000, so Mark is responsible for $10,000. After the passenger's PIP pays for the first $10,000, Mark is liable for $55,000. Mark's policy will again cover up to $50,000, leaving $5,000 for Mark to pay. The property damage is covered up to $25,000, leaving Mark responsible for $5,000. $10,000 + $5,000 + $5,000 = $20,000.

Norris borrows Arnold's truck to pick up some lumber from the hardware store. On the way to the store, Norris collides with a car, injuring the three people inside. The driver suffers $15,000 in injuries, one passenger suffers $25,000, and the other passenger suffers $20,000. Norris has a PAP with liability limits of 50/100/50, and Arnold's policy has liability limits of 25/50/10. Everyone involved in the accident has minimum PIP coverage for Florida. How much will the primary policy pay for the injuries?

30,000. Arnold owns the car that was involved in the accident, so his liability coverage is primary. Since each injured person carries $10,000 of PIP, Arnold's liability coverage will have to cover any injuries above that amount, as follows: Driver: $15,000 - $10,000 PIP = $5,000 Passenger 1: $25,000 - $10,000 PIP = $15,000 Passenger 2: $20,000 - $10,000 PIP = $10,000 Add up these amounts, and Arnold's policy will pay $30,000.

Wilson is a Florida resident who maintains a liability policy with limits of 10/20/10. Recently, he was visiting a friend in Georgia when he ran a red light and hit a BMW, causing $30,000 in property damage. The minimum liability requirement in Georgia is 25/50/25. How much will Wilson's liability insurance pay in this situation?

?? According to the out of state provision, if Wilson meets his home state's minimum insurance requirements, his policy will provide the minimum coverage required in any other state that he visits. Since Wilson got into an accident in Georgia, where the minimum liability limits are 25/50/25, his policy will provide liability coverage up to 25/50/25.

Jared runs a red light and crashes into a car, injuring the four people inside. All five people involved in the wreck have Personal Injury Protection. Emma gets severe whiplash; Amy suffers permanent scarring on her face; Alexandra has a broken leg, and Adam is paralyzed from the waist down. Florida's no-fault law allows which of these people to sue Jared?

Amy and Adam. There is an exception to the rule forbidding lawsuits for damages covered by PIP. This exception applies when the injury is permanent, causes permanent scarring or disfigurement, causes permanent loss of an important bodily function, or results in death. Amy can sue because she has permanent scarring, and Adam can sue because he has permanently lost the movement of his lower body.

In Florida, Uninsured/Underinsured Motorist Coverage:

Is required in every auto policy, unless the insured declines it in writing.

Which of the following is NOT one of the advantages of no-fault insurance?

It helps to eliminate insurance fraud.

Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy, which is set to expire on May 31. Which of the following statements is TRUE?

Lemon Insurance must notify Hugh at least 45 days before the policy expires.

Which of the following is NOT a reason to buy more insurance than the minimum amount required by Florida?

Not ---Drivers are liable for all damages they cause, while an auto policy only pays up to the set limits. If a driver were to crash into an expensive car or truck, valued at $60,000, minimum coverage would only cover the first $10,000 in damages to the automobile.

Driving home from work one night, Judy is pulled over for running a stop sign. When the police officer asks for her insurance information, Judy admits that she only carries $10,000 of property damage liability and PIP in the same amount. What penalty, if any, will Judy face for failing to maintain bodily injury liability coverage?

There is no penalty, since Judy is not required to have bodily injury liability coverage if she was not at fault in an accident.