Originally published by Sheba Abraham on August 3, 2022.
Do I Need Uninsured/Underinsured Motorist (UM) Coverage?
Are you sure you and your family are protected if you are the victim of an automobile accident?
Trial attorney and partner, Michael Noone, warns consumers to be weary of insurance companies that tell you to ‘Only Buy What You Need.’ He explains that this phrase really means the insurance company will try to push only those coverages that lead to the largest profit margins for the insurance company. Uninsured/Underinsured Motorist (UM) coverage is the most important coverage you can purchase to protect you and your loved ones, but is not a huge profit maker to insurance companies.
Because of this, the state of Florida actually had to pass a law forcing insurance companies to offer this coverage when they sell bodily injury liability coverage, because many insurance companies would not do it on their own.
In Florida, bodily injury liability coverage is not required, so there are many drivers on the road with no way of paying for the injuries they cause. Uninsured/Underinsured Motorist (UM) coverage is designed to protect you if you are involved in a car accident with a driver who lacks adequate insurance to pay for your injuries. We see way too many accidents where the at-fault driver has no insurance coverage to pay for the medical bills or lost wages they cause. In many cases, when our client also has no UM coverage, there is nothing we can do.
Florida Statute 627.727 lays out the requirements insurance companies must follow to verify that a consumer is knowingly rejecting UM coverage or selecting lower limits than the bodily injury liability coverage they have on their policy. It states:
The rejection or selection of lower limits shall be made on a form approved by the office. The form shall fully advise the applicant of the nature of the coverage and shall state that the coverage is equal to bodily injury liability limits unless lower limits are requested or the coverage is rejected.
The heading of the form shall be in 12-point bold type and shall state: “You are electing not to purchase certain valuable coverage which protects you and your family or you are purchasing uninsured motorist limits less than your bodily injury liability limits when you sign this form. Please read carefully.” If this form is signed by a named insured, it will be conclusively presumed that there was an informed, knowing rejection of coverage or election of lower limits on behalf of all insureds.
The insurer shall notify the named insured at least annually of her or his options as to the coverage required by this section. Such notice shall be part of, and attached to, the notice of premium, shall provide for a means to allow the insured to request such coverage, and shall be given in a manner approved by the office.
The legislature took these steps because they also know how important it is to have uninsured/underinsured motorist coverage to protect you and your family.