When it comes to Auto Insurance, not all companies are created equally. If you watch an hour of television, you’ll likely see a dozen commercials for the top tier Standard Auto Insurance Companies. However, in addition to these companies, there are several Non-Standard or Sub-Standard Insurance Companies in Florida that cater to individuals considered high risk due to factors like poor credit, a history of at-fault accidents or DUI.
While Sub-Standard Insurance Companies may be a last resort for individuals considered high risk, many individuals purchase policies from these companies just to save on their monthly premiums. Keep in mind, as a consumer you get what you pay for. If you’ve purchased or plan on purchasing Sub-Standard Auto Insurance, make sure your expectations in the event you’re in an accident are low, really low.
In Florida, drivers are required to carry a minimum of $10,000.00 Personal Injury Protection (P.I.P.) coverage, and $10,000.00 in Property Damage Liability (PDL) coverage. Typically, policies with these Sub-Standard Companies will carry just that and nothing else. Individuals who purchase these policies at discounted rates are often told they have “full coverage” just because they have Florida’s minimum requirements. Unfortunately, once they’re in an accident they realize they don’t have Bodily Injury (B.I.) Liability coverage for injuries they cause to others, Uninsured Motorists (U.M.) coverage for their own injuries caused by uninsured/ underinsured drivers or Collision coverage, for damage to their own vehicles.
If you’re insured by a Sub-Standard company and involved in an accident, they’ll often aggressively seek to deny you coverage for any misrepresentations in your insurance application. They typically require you to undergo an Examination under Oath (EUO), where a claims adjuster will ask you more questions about the information in your insurance application than about the accident you were involved in. A common practice is to deny coverage if the insured didn’t specifically list all residents in their household, all prior accidents they were involved in, or provided an incorrect address. Standard Insurance Companies usually won’t aggressively seek to deny coverage to their insureds on these grounds.
If you survive the EUO process, and seek to have the Sub-Standard Insurer apply your PIP coverage to medical treatment, they’ll likely immediately compel you to see an Independent Medical Examiner (IME) of the same medical specialty as your treating doctor. This IME doctor is paid by your insurance company to provide an opinion as to whether or not any additional treatment for your injuries is reasonable and necessary. The last thing these companies want to do is pay your full benefits, and you can bet the doctor they’re paying to perform the IME is on their same page. While Standard Insurance Companies will occasionally compel their insured’s to undergo PIP IME’s, a termination of future benefits feels less like a guarantee. If you’re compelled to undergo an IME, it’s recommended you have your Attorney present and take advantage of your right to film the examination.
Individuals insured by Sub-Standard Companies, often spend a significant amount of time fighting with their own insurance company for the coverage they paid for, when their main focus should be recovering from the physical and emotional injuries and damages that so often result from auto accidents.
These are just a few reasons why you should think twice before choosing a Sub-Standard Auto policy to save a quick buck. It will likely end up costing you in the long run.
Nicholas J. Roselli is an Attorney at the law firm of Roselli & McNelis, with offices in Boca Raton and Ft. Lauderdale.
