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Attorney Jonathan Perazzo
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How Much Car Insurance Do You Need?

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Most Florida motorists believe they’re protected because they carry “full coverage,” but after a serious accident, many quickly learn that their insurance limits fall short of covering all their losses. At The Perazzo Law Firm, a trusted car accident lawyer in Miami, this is an every day scenario, responsible drivers faced with devastating medical bills, vehicle damage, and financial stress because their insurance coverage wasn’t prepared for collisions that exceed minor fender benders. Understanding how much insurance you should carry isn’t just smart planning, it’s a crucial step in protecting your own well-being, that of your family, and your future on Florida’s hectic streets and fast-paced roadways. See: INSURANCE POLICIES FOR FLORIDA MOTOR VEHICLE OWNERS

How much insurance is enough for peace of mind in the event of a serious accident?

Bare Minimum (Legal, but Not Definitely Enough)

Florida Law only requires:

This is often not enough. One moderate crash can surpass these limits in minutes.

Recommended Minimum (Real-World Accident Protection)

For most drivers, a safer baseline is:

  • $100,000 Bodily Injury per person
  • $300,000 Bodily Injury per accident
  • $50,000–$100,000 Property Damage
  • $10,000 PIP (required)

This level helps protect you if someone is seriously injured or multiple vehicles are involved in the accident.

Strong Protection (What The Perazzo Law Firm Recommends)

If you have savings, a home, or steady income:

UM/UIM is critical in Florida because many drivers carry little or no insurance. The Perazzo Law Firm highly recommends carrying UM as it’s affordable of extreme value in the event of a serious accident in which the at fault party is underinsured.

Maximum Peace of Mind

For high earners or homeowners:

  • $250,000 / $500,000 (or $500,000 / $1,000,000) Bodily Injury
  • $100,000+ Property Damage
  • UM/UIM coverage
  • $1–$2 million Umbrella Policy

An umbrella policy is relatively inexpensive and protects against catastrophic claims. These policies protect your Assets in the event of a serious accident.

Why This is Important

  • A single ER visit can exceed $20,000
  • An MRI can cost between $3500-$5000
  • A broken bone with surgery can exceed $75,000
  • A multi-vehicle crash can lead to six-figure claims fast

If your coverage is too low, your personal assets and future income may be at risk. See COMMON CAR ACCIDENT INJURIES

Why There Is No One-Size-Fits-All Answer

Insurance companies and courts evaluate risk based on what an accident could cost, not just how often it happens.

Several factors influence how much coverage you may need:

  • Accident severity, which determines how serious injuries or damage may be
  • Medical costs, including emergency care, surgery, and long-term treatment
  • Vehicle repair costs, which have risen sharply with modern technology
  • Lawsuits and liability exposure, especially when injuries are severe

Because of these factors, two drivers with identical cars and driving records may still face very different financial risks. Coverage decisions should reflect the potential cost of a worst-case scenario, not just everyday driving.

How Much Coverage Do You Need Based on Your Assets?

Your assets play a major role in determining how much insurance you should carry.

This includes:

  • Income and wages
  • Savings and investments
  • Home ownership or other property
  • Future earning potential

When insurance coverage runs out, injured parties may pursue compensation directly from the at-fault driver. Lawsuits often target available assets and income. Carrying sufficient insurance helps protect what you’ve worked hard to build.

How Much Coverage Do You Need If You’re Injured by Another Driver?

Not all drivers carry enough insurance and some carry none at all. This is why Uninsured / Underinsured Motorist (UM/UIM) is so important.

Many accident victims rely on their own policies when the at-fault driver’s insurance is insufficient. Without this coverage, you may have limited options for paying medical bills or replacing lost income.

This type of protection is often overlooked, but it can be critical when the other driver cannot fully compensate you.

Minimum Coverage vs. Full Coverage: What’s the Difference?

“Full coverage” is not a legal term. It usually means a policy that includes:

  • Liability insurance
  • Collision coverage
  • Comprehensive coverage

Minimum coverage meets legal requirements but often excludes protection for your own vehicle and may offer limited liability protection. Full coverage can make sense for newer vehicles or drivers with higher financial exposure, but even full coverage policies have limits.

The key is understanding what your policy actually covers and where gaps may exist.

What Happens If Your Insurance Isn’t Enough After an Accident?

When insurance limits are exceeded, the consequences can be serious and often life-altering. Insurance is meant to act as a financial safety net, but once that net is exhausted, the at-fault driver may be personally responsible for the remaining losses.

Drivers may face:

  • Personal lawsuits – Drivers may face personal lawsuits from injured parties seeking compensation for medical bills, lost income, and pain and suffering that go beyond available coverage. These lawsuits can drag on for months or even years, creating stress, legal expenses, and uncertainty long after the accident itself.
  • Wage garnishment – If a court awards damages that exceed insurance limits, wage garnishment may follow. This means a portion of the driver’s paycheck can be taken directly to satisfy a judgment, reducing take-home pay and making it harder to cover everyday living expenses.
  • Asset seizure – In more severe cases, asset seizure becomes a possibility. Savings accounts, investment funds, and even property such as vehicles or real estate may be targeted to recover unpaid damages. What took years to build can be put at risk because of a single accident.
  • Long-term financial damage – Beyond the immediate financial hit, there is also long-term financial damage. Large judgments can affect credit, delay major life plans, and limit future opportunities. In some situations, the financial fallout from an underinsured accident can follow a driver for decades, long after the crash has faded from memory.

This is where many insurance guides stop. Understanding these risks ahead of time allows drivers to make informed coverage decisions and avoid devastating outcomes after a crash. This is why choosing adequate insurance coverage isn’t just about meeting legal requirements, it’s about protecting your financial future.

FAQs About How Much Car Insurance Do I Need?

How much car insurance do I legally need?
You must meet your state’s minimum insurance requirements, but those limits may not protect you financially after a serious accident.

Is minimum car insurance enough?
Often no. Minimum coverage may cover basic legal obligations but frequently falls short in injury or lawsuit scenarios.

How much liability insurance should I carry?
Many drivers choose limits higher than the minimum to protect against medical costs and lawsuits that exceed basic coverage.

How much uninsured motorist coverage should I have?
Enough to protect you if the at-fault driver has little or no insurance, especially in states with high uninsured driver rates.

Does full coverage protect me completely?
Not always. Full coverage still has limits and exclusions that may leave gaps after severe accidents.

How much car insurance do Florida drivers need?
Florida drivers must carry PIP and property damage liability, but additional coverage is often recommended to protect against serious financial risk.

Bottom Line

  • Legal minimum = risky
  • Recommended coverage = protection
  • UM/UIM = essential in Florida
  • Umbrella policy = smart if you have assets

If you or a loved one has been injured in a car accident, don’t leave your future in the hands of insurance companies. The Perazzo Law Firm is here to stand up for you. As a trusted car accident lawyer in Miami, our team brings experience, dedication, and a proven track record of results to every case we handle.

We offer FREE consultations, are available 24/7, and charge ZERO out-of-pocket fees to clients, you don’t pay us unless we win. With a 4.9-star Google rating and a client-first approach, we fight to secure the maximum compensation you deserve.

Call 888-PERAZZO today
Contact us ONLINE anytime

The Perazzo Law Firm — Dedicated to Putting your Interests First