Most people stay with the same insurance company because it feels easy. They believe in the commercials and think that their insurance company is looking out for them. But in the insurance world, there is no loyalty. Car insurance in Florida is not like the good old days. The faster that you realize this fact, the faster that you will save money and be able to afford more coverage. Here is why you should look for a new policy every two to three years:
- Prices Change Constantly: Insurance companies change their rates all the time based on new data. A company that was the cheapest three years ago might be the most expensive today.
- New Discounts: Your life changes! Maybe you got married, bought a house, or your credit score went up. All of these things can lead to big discounts that your current company might not automatically apply.
- The “Loyalty Penalty”: Believe it or not, some companies actually charge long-term customers more because they know those customers aren’t likely to leave.
- Market Competition: New insurance companies are always trying to win over customers by offering “introductory rates.” By shopping around, you can take advantage of these lower prices.
Pro Tip: Always get at least two-three quotes when you shop. It only takes about 30 minutes, and it could save you hundreds or thousands of dollars a year.
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Understanding Your Insurance Options
Before you can shop for a better price, you need to know what you are buying. In Florida, the law only requires a tiny amount of insurance and that “minimum” is never enough to protect you.
Here are the different types of coverage you will see:
1. Personal Injury Protection (PIP)
- What it is: This is required by Florida law. It is often called “No-Fault” insurance.
- What it does: It pays for 80% of your medical bills and 60% of your lost wages, up to $10,000, no matter who caused the accident.
- The Problem: $10,000 is gone in a flash if you have to go to the emergency room or take an ambulance.
2. Property Damage Liability (PDL)
- What it is: Also required by Florida law.
- What it does: It pays for the damage you cause to someone else’s property (like their car or a fence).
- The Minimum: Florida only requires $10,000, which won’t even cover a fender-bender on a new luxury SUV.
3. Bodily Injury Liability (BI) – CRITICAL
- What it is: This is not required by Florida law for most drivers, but it is the most important coverage you can buy to protect your assets.
- What it does: If you cause an accident and hurt someone else, BI pays for their medical bills and pain and suffering.
- Why you need it: Without BI, if you cause an accident, the other person can sue you personally. They could go after your savings or even your future wages.
4. Uninsured Motorist (UM)- CRITICAL
- What it is: This is not required by Florida law for most drivers, but it is the most important coverage you can buy to protect your health.
- What it does: If someone else causes the accident and hurts you, UM pays for your medical bills and pain and suffering.
- Why you need it: Without UM, if the at-fault driver does not have insurance (or enough insurance), you get nothing. UM is necessary to protect yourself from others.
5. Collision Coverage
- What it does: This pays to fix your car if you hit something, regardless of who is at fault.
- When to skip it: If your car is very old and worth less than $2,000, you might save money by dropping this.
6. Comprehensive Coverage
- What it does: This covers “acts of God” or things that aren’t crashes; like a tree falling on your car, theft, fire, or a cracked windshield.
Why Bodily Injury (BI) and Uninsured Motorist (UM) are Essential
I cannot stress this enough: In Florida, you MUST carry Bodily Injury and Uninsured Motorist coverage. Florida has some of the worst insurance laws in the country. Because Bodily Injury (BI) is not required, many people driving on our roads have zero insurance to pay for your injuries if they hit you.
- You need BI to protect your house and savings from being taken if you make a mistake behind the wheel.
- You need UM to protect your body and health if someone else makes a mistake.
In Florida, you usually cannot buy Uninsured Motorist coverage unless you also buy Bodily Injury coverage. Think of them as a pair of safety goggles: BI protects others from you, and UM protects you from others.
What is Uninsured Motorist (UM) Coverage?
Uninsured Motorist (UM) coverage is your personal safety net. It is insurance that you buy to protect yourself and your family. If you are hit by a driver who has no insurance (or not enough insurance to pay for your injuries) your own UM coverage steps in to pay the bill. It covers things that PIP doesn’t, like your total medical bills, your future lost wages, and your “pain and suffering.”
In Florida, about one out of every five drivers has no insurance at all. Many more only carry the bare minimum ($10,000 PIP). If you are seriously hurt by one of these drivers, they will not have a dime to pay you. Without UM, you could be stuck with $100,000 in medical debt through no fault of your own. UM is the only way to make sure you are compensated for your pain and the changes to your life after a crash. In my experience, there is about a 40-50% chance that the other driver will either not have any insurance or not enough. These stats are scary, so please protect yourself!
Final Checklist for Saving Money and Staying Safe
When you call an agent to shop your policy this week, use these steps:
- Check for Bundling: Ask if you can save money by putting your car and home insurance with the same company.
- Ask About Deductibles: Raising your deductible from $500 to $1,000 can lower your monthly bill. Just make sure you have that $1,000 saved in the bank just in case.
- Don’t Buy “Full Coverage”: This is a trick phrase. “Full coverage” often just means you have the legal minimums. Ask for specific amounts, like $100,000/$300,000 in BI and UM.
- Tell Them Your Mileage: If you work from home or have a short commute, tell your agent. You might get a low-mileage discount.
- Look for Specialty Discounts: Ask about discounts for good students, military service, or even certain jobs like teaching or nursing.
Frequently Asked Questions
Why Should I Switch Insurance Companies Every Few Years if I’m Happy With My Current One?
While it feels easier to stay put, insurance companies often penalize loyalty through a “loyalty penalty,” where long-term customers are charged more because they are unlikely to shop around. Rates change constantly based on new data, and your life changes (like a better credit score or getting married) may qualify you for discounts your current insurer hasn’t applied. Shopping every two to three years ensures you aren’t overpaying for the same coverage.
Is “full coverage” enough to protect me in Florida?
Actually, “full coverage” is a misleading marketing term. In many cases, it simply means you have the state-required minimums: Personal Injury Protection (PIP) and Property Damage Liability (PDL). These minimums only provide $10,000 in coverage, which is often exhausted within minutes of an emergency room visit. To be truly protected, you need to specifically request Bodily Injury (BI) and Uninsured Motorist (UM) coverage.
What Is the Difference Between Bodily Injury (Bi) and Uninsured Motorist (UM) Coverage?
Think of them as two sides of a coin:
- Bodily Injury (BI): Protects your assets. If you cause an accident, BI pays for the other person’s medical bills so they don’t sue you for your savings or house.
- Uninsured Motorist (UM): Protects your body. If someone else hits you and they have no insurance (or not enough), your UM coverage pays for your medical bills and pain and suffering.
Why Is Uninsured Motorist Coverage So Important in Florida Specifically?
Florida has some of the highest rates of uninsured or underinsured drivers in the country; roughly one out of every five drivers has no insurance at all. Since Florida law doesn’t require drivers to carry Bodily Injury coverage, there is a high statistical chance (40-50%) that if you are injured by another driver, they won’t have the money to pay for your recovery. UM is your only safety net in these scenarios.
How Can I Lower My Monthly Premium Without Sacrificing Essential Coverage?
You don’t have to cut your protection to save money. Instead, try these strategies:
- Increase your deductible: Moving from a $500 to a $1,000 deductible can significantly lower your premium.
- Bundle policies: Combine your home and auto insurance with the same provider.
- Report your mileage: If you work from home or have a short commute, you may qualify for a low-mileage discount.
- Check for professional discounts: Ask about lower rates for military members, teachers, nurses, or students.
Contact Sean McQuaid Today
Insurance companies are not in the business of being your friend; they are in the business of making money. I have spent my career fighting these companies to make sure my clients get what they deserve.
If you have questions about your current policy, or if you or a loved one has been injured in a car accident, please do not wait. Contact me, Sean McQuaid, today for a free consultation. I am here to help you navigate the confusion of Florida insurance and get your life back on track.
