FLORIDA – A new study from the Insurance Research Council revealed that one in three drivers in the U.S. are either uninsured or underinsured. The data shows a 10% increase in the number of such drivers since 2017, and in Florida, the situation is even worse.
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Florida ranks seventh in the nation for uninsured motorists, with 20.6% of drivers lacking coverage. But the bigger issue in the state is underinsured drivers. Nearly 40% of Florida drivers—38.3%—don’t have enough insurance to cover the costs of an accident.
Mark Friedlander of the Insurance Information Institute highlighted the problem.
“One out of every five Florida drivers has no insurance at all. That is pretty alarming,” Friedlander said. The state’s minimum insurance is $10,000 in personal injury protection (PIP) and $10,000 in property damage liability.
Friedlander warned that Florida’s state minimums offer little protection. For better coverage, the Insurance Information Institute recommends the following policy:
- $100,000 in bodily injury protection per person
- $300,000 per accident
- $100,000 in property damage liability .This policy, often referred to as a “100/300/100” policy, provides more comprehensive coverage for accidents.
Friedlander said the rising costs of accidents, repairs, medical treatments, and litigation make it clear.
“You are on the hook for paying out of pocket if you don’t have adequate protection,” Friedlander said.
For those with higher assets, Friedlander suggests considering personal umbrella coverage, which provides extra protection beyond typical car insurance.
Rising insurance costs are contributing to this troubling trend, especially in Florida, which ranks among the most expensive states for auto insurance.
A Bankrate study reveals Florida drivers pay the second-highest auto insurance rates in the U.S., with an average annual premium of about $4,100.
Experts recommend shopping around for the best rate, adjusting deductibles, taking advantage of discounts, and bundling insurance packages to reduce costs