What to Do When the At‑Fault Driver Is Uninsured or Underinsured in Florida

Car accidents are traumatic enough without discovering the person responsible for the crash has little or no insurance. In Florida, while this type of collision can complicate your recovery of damages, it doesn’t necessarily mean that you’re out of luck.

Below, we’ll walk you through what steps you should consider taking, legal tools available, and how you may be able to maximize your financial recovery after an accident with an uninsured or underinsured driver.

Florida’s insurance landscape

In 2023, 15.4% of motorists nationwide were uninsured. Florida has one of the highest rates of uninsured drivers in the country, coming in at 20.6%. And because Florida does not require Bodily Injury Insurance, approximately 50% of the cars on the road do not carry insurance to pay for anything beyond fixing your vehicle. As a result, the odds of you being hit by someone without coverage are substantially higher here than in other states.

Basic required coverage of PIP and property damage liability

Florida is a no-fault state, meaning drivers are legally required to have both personal injury protection (PIP) and property damage liability (PDL) coverage. But they do not have to carry any Liability or Bodily Injury Insurance.

PIP covers medical bills and a portion of lost wages, up to the policy limit (usually $10,000.00), regardless of who was at fault. What PIP doesn’t cover is compensation for medical bills after your PIP is gone, your pain and suffering, the full amount of lost wages, or any damages above the limit.

Property Damage, the other mandatory insurance in Florida, covers damage to vehicles or property caused in an accident. Unless someone else is responsible and has bodily injury liability coverage, the mandatory minimum PIP and Property Damage won’t pay a penny for your bodily injury losses.

Uninsured and underinsured motorist coverage

Due to the limited scope of PIP and Property Damage coverage, smart Florida drivers also carry Uninsured motorist (UM) and/or Underinsured motorist (UIM) coverage. This coverage serves as a financial safety net for you and your family when the person who caused the accident insurance can’t fully compensate you:

• Uninsured motorist coverage applies when the responsible driver has no liability insurance.
• Underinsured motorist coverage provides another layer of coverage when the responsible driver’s liability limits aren’t enough relative to your losses.

Under Florida law, auto insurance companies are required to offer you Uninsured Motorist Coverage but you have to purchase Bodily Injury liability coverage at the same time.

Florida lets you “stack” your UM coverage by the number of cars you own and insure at the same time with the same insurance company. This is the best insurance deal you will ever find. Always tell your insurance agent that you want “Stacked UM Coverage.”

Next steps after a car crash

When the at-fault driver is uninsured or underinsured, your actions right after the accident matter even more, as the stakes are high.

Document everything and preserve evidence

It’s completely normal to feel shaken up after a car accident. Once you’ve gotten to safety and called for help, gather as much evidence as you can. The stronger your paper trail, the stronger your claim.

1. Immediately call the police and ask for a police report, or at least a “driver’s exchange.” A police report or driver’s exchange is required to make a claim under your UM coverage if the at fault driver flees from the scene of the crash.
2. Photograph and record videos of vehicles with their license plates visible, as well as any injuries and road conditions.
3. Collect contact information of the other driver and witnesses.
4. Keep detailed medical records, including doctor visits, examinations, prescriptions, rehab, and therapy.

Documentation and evidence are essential to a claim. Otherwise, insurance companies are likely to question how serious your injuries are and may outright deny liability.

Notify your insurance company and file a claim

Even if your UM/UIM policies didn’t require timely notice, and most do, it’s still critical for you to notify your insurance company of the accident promptly. In filing a claim under your UM or UIM coverage, your insurer will investigate to:

• Investigate liability;
• Confirm the other driver is indeed underinsured or uninsured; and
• Evaluate your damages.

If the other driver has any liability coverage, even if limited, you want to notify their insurance company as well.

Strategically manage settlement offers

Insurance companies are notorious for trying to settle quickly and/or for less than the actual value of a claim. This approach is even more common in UM/UIM claims where your own insurer becomes the opposing party. Before accepting any offer, it’s best to consult a Board Certified Civil attorney. Experienced legal counsel can assess the value of your case in light of injuries, long-term prognosis, and policy limits and advise on whether the settlement provides adequate compensation.

Legal tools and tactics used for car accidents

When insurance policy limits fall short, some tools and tactics can be employed to help bridge the gap between your losses and coverage caps.

Use the UM/UIM policy to fill the gap

Your UM/UIM may cover the costs that exceed what the at-fault driver’s liability policy is willing to pay. According to Florida Statutes § 627.727(1), “difference, if any, between the sum of such benefits and the damages sustained, up to the maximum amount of such coverage.”

For instance, suppose your damages are $60,000, and the at-fault driver’s policy pays $10,000. Your UIM coverage may cover the $50,000 difference, up to your UIM limits. In other words, Florida UIM coverage applies only after the at-fault driver’s limits are exhausted.

Pursue a bad faith or statutory remedy

If your insurance company drags its feet, undervalues your claim, or flat-out denies your UM/UIM claim, you may have an opportunity to pursue a bad-faith action after liability and damages are determined. Florida law requires a proper presuit demand and a Civil Remedy Notice, and the insurer must be given a statutory opportunity (typically 60 days) to cure the violation before a bad-faith claim can move forward. This is very complicated and you need the help of a Board Certified Civil Trial Lawyer.

Common pitfalls to watch out for

Rejecting UM/UIM in writing

Insurers must offer UM/UIM coverage, but you won’t be covered if you reject the offer in writing. Review your policy documents to verify whether UM/UIM protection was limited or rejected. And rejection is most commonly done online when you are buying your car insurance from many of the online carriers such as GEICO, Progressive, Allstate, USAA.

Misunderstanding or not understanding stacking and non-stacking

All Florida policies allow for stacking, which is the combination of UM coverage across multiple vehicles. If a policy waives stacking it can’t be used to double, or triple, or multiply your UM coverage by the number of cars you own and insure.

Limitations on non-economic damages

UM/UIM claims typically require meeting Florida’s tort threshold (significant and permanent injury), because most UM policies incorporate the tort threshold on non-economic damages. Specifically, § 627.737(2) permits coverage to be denied for pain and suffering unless the driver not responsible for the accident has suffered:

• Significant and permanent loss of an important bodily function
• Permanent injury with a reasonable degree of medical probability (other than scarring or disfigurement)
• Significant and permanent scarring or disfigurement
• Death

How a car accident attorney can help with uninsured driver claims

Handling UM/UIM claims, insurance policy terms, and difficult insurance companies can be complex and stressful. With legal guidance, you might be able to maximize your chances of being awarded adequate compensation when the driver who hit you lacks sufficient coverage. Before you settle the bodily injury part of your claim, you MUST get permission from your UM carrier, or else you will waive your right to collect from the UM carrier.

You don’t have to handle your claim by yourself. Contact MattLaw Car Accident & Personal Injury Lawyers to schedule a consultation so we can help. We can review your policy, evaluate your claim, and discuss your options.