When a car accident claim in Florida exceeds the at-fault driver's insurance limits, it can create a difficult financial situation for the injured party. Since Florida is a "no-fault" state, the process begins with your own Personal Injury Protection (PIP) coverage, but once that's exhausted, you may have to seek additional compensation from other sources.
Here's a breakdown of what happens and the options available:
The Insurance Company's Responsibility
The at-fault driver's insurance company is only obligated to pay up to the policy's maximum limit. If the damages (medical bills, lost wages, etc.) exceed this limit, the insurance company will not pay the difference. The injured party is then responsible for pursuing the remaining compensation.
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Florida's No-Fault System and "Serious Injury" Threshold
Florida law requires drivers to carry a minimum of $10,000 in PIP coverage and $10,000 in Property Damage Liability (PDL). PIP coverage pays for 80% of your medical expenses and 60% of lost wages, up to the $10,000 limit, regardless of who was at fault.
If your injuries are severe and exceed your PIP coverage, you can step outside of the no-fault system and file a claim against the at-fault driver. To do this, your injuries must meet Florida's "serious injury" threshold, which is defined as:
Significant and permanent loss of an important bodily function.
Permanent injury within a reasonable degree of medical probability.
Significant and permanent scarring or disfigurement.
Death.
Once you meet this threshold, you can seek a wider range of damages, including pain and suffering, emotional distress, and future medical expenses, in addition to medical costs and lost wages.
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Options for Recovering Damages Beyond Insurance Limits
If the at-fault driver's policy limit is insufficient to cover your damages, you have several avenues to pursue the remaining amount:
Your Own Uninsured/Underinsured Motorist (UM/UIM) Coverage: This is often the most effective way to cover the gap. While not required in Florida, UM/UIM coverage is highly recommended. It pays for your damages when the at-fault driver either has no insurance (uninsured) or not enough to cover your losses (underinsured).
