The Dangers of Cheap Auto Insurance

When it comes to protecting yourself and your family on the road, cheaper isn’t always better—especially in Florida. The dangers of cheap auto insurance often reveal themselves too late, after an accident has already happened. At O’Quinn Insurance Services, we’ve seen how the wrong insurance can put everything you’ve worked hard to build at risk. We serve Ormond Beach, Daytona Beach, Palm Coast, and Flagler with expert guidance that helps drivers avoid those costly mistakes.

Florida’s Low Minimums Leave You Exposed

In Florida, it’s surprisingly easy for drivers to meet the legal minimums and hit the road. The state only requires two basic coverages:

• $10,000 in Personal Injury Protection (PIP), which covers medical bills up to $10,000 for you and your passengers.
• $10,000 in Property Damage Liability (PDL), which pays up to $10,000 for damage you cause to someone else’s vehicle or property.

That’s all it takes to register a vehicle and hit the road.

But there’s a big gap in that coverage. Florida doesn’t require Bodily Injury Liability (BIL)—the coverage that helps pay for someone else’s medical bills if you injure them in a crash. Without it, you could be held personally responsible for those expenses.

If you’re at fault in an accident that causes injuries, the state may then require you to carry “10/20” BIL coverage: $10,000 per person and $20,000 per accident. But in today’s world, those limits often fall far short of actual medical costs or legal claims.

Two Major Problems with Cheap Coverage

1 in 5 Florida Drivers Have Only the Bare Minimum or Less

If you’re in an accident with one of them, their insurance likely won’t cover your medical bills, lost wages, or pain and suffering. That’s why it’s critical to carry Uninsured Motorist (UM) or Underinsured Motorist (UIM) coverage.

UM/UIM helps cover your expenses when the at-fault driver doesn’t have enough insurance—or none at all. It protects you from financial fallout after a serious crash, including time out of work, medical treatment, and long-term injuries.

You can sue the other driver, but that process can take years and may not lead to a payout. Carrying UM/UIM is a faster, more reliable way to protect yourself. It may cost a little more, but the peace of mind is worth it.

Many People Misinsure Themselves

Catchy ads and “Name Your Price” tools make it easy to focus on the lowest premium. But many drivers don’t realize what they’re giving up in coverage. It feels like you’re protected—until you file a claim and see what’s actually included.

That’s why it’s so important to work with an agent who understands coverage, risk, and Florida’s insurance requirements. A knowledgeable agent won’t just plug numbers into a system. They’ll walk you through how your policy holds up in real-life situations and make sure you’re not left exposed.

The right guidance can mean the difference between a smooth claims process and a financial nightmare.

The Real Risk: Your Assets

Let’s say you’re at fault in an accident and you have $100,000 in assets—stocks, savings, a business, a second home.

In Florida, there’s a high chance the other party will call a lawyer. In fact, one study found that 85% of car accident claimants are approached by big name attorneys, like Morgan & Morgan,. Those who hire an attorney often receive significantly higher settlements. That attorney makes their money by going after the larger payout—either your insurance policy or your personal assets.

If your bodily injury limits are low, like $10,000/$20,000, and the other driver’s expenses exceed that, your assets are exposed. You could be forced to sell your car, drain your savings, or liquidate your business shares to cover the bill.

The Right Coverage: How to Protect Yourself

A good insurance agent will help you assess your assets—stocks, mutual funds, rental properties, business interests, and more. Once you total everything, you’ll have a clearer idea of how much liability coverage you actually need.

If you injure someone in a crash, attorneys and courts will use your assets to decide what you owe.

Carrying higher Bodily Injury limits—like $100,000/$300,000—does more than just cover medical bills. It can also pay for your legal defense, which sometimes costs more than the damages themselves.

Let’s Protect What You’ve Built

At O’Quinn Insurance Services, we’re here to make sure you’re not just buying cheap insurance—you’re buying peace of mind. Our team proudly serves Ormond Beach, Daytona Beach, Palm Coast, and Flagler with expert guidance and personalized coverage. Let’s make sure your auto policy truly protects what matters.

Contact us today for a coverage review and a conversation about the protection you really need—because your assets and peace of mind are worth it.