Day in and day out, we are all faced with acronyms that make you scratch your head. The legal field is no stranger to this dilemma. After an Auto Accident, we are often faced with adjusters and insurance companies throwing around terms and abbreviations assuming everyone knows ‘the lingo.’ However, rarely is it that simple and often times, our clients do not understand the difference between the different kinds of coverage. As our clients know, here at Fente & Fente our energy is always devoted to making a client’s experience as easy and straightforward as possible. So, what do all these different coverage acronyms stand for? BI, PD, PIP, UM/UIM???? Let’s break it down….
BI – Bodily Injury Coverage: If you or someone you know has been injured in an Automobile Accident, you may be able to recover monetary damages for physical injuries from an at-fault driver’s Bodily Injury Insurance Coverage. Bodily Injury insurance coverage is carried by the at-fault party. An injured party can make a claim against an at-fault party’s Bodily Injury insurance coverage if they have sustained injuries when involved in an Auto Accident.
PD – Property Damage: If you or someone you know suffered damage to their automobile or personal property, as a result of an Automobile Accident, they may be able to recover monetary compensation for damages to their vehicle from an at-fault party’s Property Damage insurance Coverage. In the State of Florida, Property Damage insurance coverage in the amount of $10,000.00 is mandatory. If your vehicle has been damaged as a result of an accident, you may be entitled to have an at-fault’s Property Damage insurance coverage cover some, if not all, of the costs associated with repairing or replacing your automobile.
PIP – Personal Injury Protection: If you or someone you know was injured as a result of an Automobile Accident, they may entitled to up $10,000.00 of Personal Injury Protection. Personal Injury Protection, like Property Damage insurance coverage, is mandatory in the State of Florida. Generally, Personal Injury Protection is provided under your own Auto Insurance. Unlike BI, PD, and UM/UIM, Personal Injury Protection is available irrespective of fault. Under Florida Law, an individual injured in an Automobile Accident may receive up to $10,000.00 in benefits to assist in paying for medical services and lost wages from their PIP insurance coverage.
UM/UIM – Uninsured/Underinsured Motorist: If you or someone you know was injured as a result of an Automobile Accident, they may be entitled to recover monetary compensation under Uninsured/Underinsured Motorist insurance coverage.
In essence, if an at-fault party either
a) has no Bodily Injury (BI) insurance coverage to pay monetary compensation as a result of physical injuries or
b) has insufficient Bodily Injury (BI) insurance coverage to pay for monetary compensation as a result of physical injuries you may be entitled to make a claim against your own Uninsured/Underinsured Motorist insurance coverage.
In the State of Florida, all insurance policies automatically come with Uninsured/Underinsured Motorist insurance coverage, but generally, insurance agents have insureds sign UM/UIM Waivers thereby eliminating this form of coverage. Unlike BI and PD coverage, UM/UIM insurance coverage travels under the injured party’s insurance, as opposed to the at-fault party’s. It is important to discuss with your insurance agent the pros and cons in purchasing UM/UIM insurance coverage, especially in South Florida, where drivers often times do not have sufficient insurance coverage or no Bodily Injury insurance coverage at all.
To discuss how these different types of coverage may affect your rights as a result of an automobile accident, please contact our office immediately so that we may assist you.