Understanding Auto Insurance

If you are like many Floridians, you have no idea what kind of auto insurance coverage you have, let alone what each coverage means. Often when I am reviewing coverage with a new client and see coverage that I feel is not adequate, I ask the customer about why they chose to have that kind of coverage. You would be surprised to know how many people tell me that they had no idea what they carried and that they just trusted their agent to provide them with what they needed. Once I explained the details of their coverage to them, they couldn’t believe they had such a gap in their insurance.

Below is a brief description of some of the auto insurance coverages you should be familiar with:

• Bodily Injury: This is the amount of money available to the person you hurt in an accident, if you are charged with being at fault.
• Property Damage: This is the amount of money available for property you damage, i.e someone’s vehicle, if you are charged with being at fault in an accident.
• Personal Injury Protection (PIP) – (Also referred to as Florida No Fault): This is coverage for you, in the event of an accident, regardless of fault. You are covered up to the limits of your policy. It is a required coverage by Florida law to all owner/registrants of motor vehicles with 4 wheels or more. You must carry a minimum of $10,000.00.
• Uninsured/Underinsured Motorist: This is an optional coverage that means exactly what it says. If you are involved in an accident and the other person is at fault, and either they do not carry insurance OR they do not carry as much insurance as you do, this coverage would kick in. I have seen many people who choose not to carry this coverage, however, most people don’t realize that this is an important coverage that protects YOU. You carry the bodily injury for the person that you hit, why not make sure you carry it for yourself as well.
• Comprehensive: Helps to pay for covered losses cause by natural disasters, fire, theft, vandalism and similar events, subject to your deductible.
• Collision: Helps to pay for repairs or replacement to your car if you are in a covered accident that involves other vehicles or stationary objects, subject to your deductible.
• Medical Payments: Helps to pay medical bills if you are hurt in a covered accident. It helps to cover the gap between the 80 percent of medical payments your Personal Injury Protection covers and the $10,000 you are responsible for.

It is important that you have an understanding of these coverages to make sure you are properly protected. If you have a good agent, you should see these coverages on your policy. If you do not, or you would like me to review your coverage to make sure you are insured properly, give me a call for a complimentary, no obligation review of your current coverage.

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One Response to “Understanding Auto Insurance”

  1. Mir Lynne Pietrzyk Says:

    Awesome info thank you Angie

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