Category Archives: Florida Auto Insurance
Here are the different coverages that make up a Florida auto insurance policy.
This is probably the most important type of Florida auto insurance, and it’s required by most state auto insurance laws. Liability car insurance protects you against the cost of damage and injury that you cause to another in an automobile accident.
It’s actually made up of two different policies, bodily injury liability, and property damage liability. As you might guess, bodily injury insurance protects you from the cost of personal injury to others, and property damage insurance protects you from the cost of damage you cause to any physical property.
You’ve probably seen automobile policies described by three numbers (like 50/100/25). These numbers refer to auto liability insurance.
They’re usually called the split limits of liability insurance. Under our example auto liability insurance policy, you’d be covered for up to:
•$50,000 worth of bodily injury caused to another person •$100,000 for bodily injuries caused to everyone •$25,000 worth of property damage.
For Florida auto insurance, the state minimum for liability is 10/20/10. Even though it may be tempting to save a few bucks by going with the minimum liability required in Florida, it is always worth investing in a little extra protection.
PIP Insurance Coverage
People are often confused about what PIP is, whose insurance company pays out the benefits in the event of an accident, and what is meant by Florida being a “no-fault” State. As a local Independent insurance agent, here are the facts:
- PIP stands for Personal Injury Protection and under Florida law it is required that every vehicle owner and driver on the road have $10,000 worth of PIP insurance coverage.
- PIP benefits are paid by your own insurance company regardless of who was at fault for the accident. This is what is meant by Florida being a no-fault State.
- PIP insurance pays for 80% of your medical bills and 60% of your lost wages, 100% replacement of household services, up to $5,000 in death benefits, up to a total maximum of $10,000. This means, you have to recover the rest of your out of pocket expenses from the driver that caused the accident.
- PIP covers any accident or injury that involves a vehicle, even if you are on a bicycle or a pedestrian and are injured by a vehicle.
- You can purchase additional PIP for your policy which will increase the minimum benefit of $10,000. Talk to your Insurance agent about adding this endorsement coverage.
Medical payments insurance
This policy provides for the immediate treatment of injuries caused by a car accident. You, your family members and other passengers in your vehicle are covered, regardless of who is at fault for the accident. Medical Payments can also be used for funeral expenses.
PIP, or personal injury protection, is similar to medical payments coverage, but usually provides broader coverage. Many PIP policies provide compensation for lost wages, funeral expenses, and pain and suffering.
Most states that require personals injury protection are “no fault” states.
Underinsured and Uninsured Motorist Insurance
Both of these types of insurance protect you against injury caused in an automobile accident where the at-fault driver’s liability car insurance coverage is inadequate. Though they’re often lumped together, they’re really two distinct policies.
Uninsured motorist insurance is needed when the other driver has no liability coverage.
Underinsured motorist coverage pays for the cost of your injuries that exceed the other driver’s coverage maximum.
Most states require neither type of coverage, but some require one or the other, and a few even require both. They’re more often required in no fault states.
Collision insurance coverage pays for damage caused to your vehicle in an automobile accident, when you are “at fault”. A standard collision automobile insurance policy will pay for any repairs up to the fair market value of your car.
It is important to remember that this value can be significantly lower than the cost of replacing your vehicle (or your loan balance.) If your car is financed or leased, you may need gap insurance to reimburse you for the difference between what you owe and what the car is worth.
Collision coverage usually also comes with an insurance deductible. It’s the amount of money you pay toward repairs before your collision insurance kicks in. The higher the deductible you’re willing to pay, the less the collision policy will cost.
Collision insurance coverage is not required by law in any state. However, if you’re driving a car purchased from a dealership or financed through a lender, you may be required by the dealership or lender to carry collision insurance.
Comprehensive Automobile Insurance
Comprehensive is very similar to collision insurance, the main difference being that comprehensive covers damage caused to your vehicle, caused by any unknown party or “act of God”.
Vandalism, flood, hurricane, theft, earthquake, falling objects, explosion and fire are all events usually covered by comprehensive automobile insurance. (But make sure to read your comprehensive insurance policy for exact coverage details.)
Like collision automobile insurance, comprehensive coverage will pay up to the fair market value of your car (less your insurance deductible.) And although it’s not legally required by any state, you will probably need it if your car is financed.
Automobile Insurance Endorsements
Automobile insurance endorsement is just a fancy term for any of those policy extras like towing insurance, daily rental insurance, and emergency roadside insurance.
These policies are never required by any state, but many drivers value the security and convenience they provide.
Here’s what you get for your money:
auto towing insurance pays for towing your car anytime you need it
daily rental insurance covers the cost of a rental car while your car is being repaired because of a covered event. So you’ll usually need both comprehensive and collision insurance to qualify.
emergency roadside assistance covers repairs done on the spot. Changing a flat roadside may be covered, but you’ll have to pay for any repairs at the garage. This policy is often combined with auto towing coverage, and called roadside emergency towing insurance.