About Auto Insurance Policies
Here is some in-depth information to help you understand your Florida auto insurance policy better and to help you select the coverage that suits your needs or desires best. Whether you want extensive coverage, or you are only getting insurance be legal to drive.
Coverages for personal auto in Florida are as follows:
PIP (Personal Injury Protection): By Florida law is on every policy. This automatically gives you $10,000 maximum for medical, work loss, replacement services, & death on your policy per person, per accident for yourself and most others in your vehicle regardless of whose fault the accident was.
PART A – Liability Coverage:
This covers you if you are found “legally liable” (legally responsible) for bodily injuries and/or property damages due to your insured vehicle. (ie: a driver is at fault & found legally liable for $25K in injuries to another driver and also $10,000 to fix the other driver’s car. The legally liable driver would look to his Part A Liability for coverage).
Part A liability on your policy starts with two figures seperated by a slash (ie: 100/300). These represent the amount of liability coverage you have for bodily injury to others.
The first figure is the amount of liability coverage you have per person, per accident. In the above example that would be $100,000. The second figure is the total amount of bodily liability coverage you have per accident, in this case $300,000, and is useful if more than one person was injured.
The second part of the coverage is the amount of liability insurance you have for property damage. (ie: You are at fault in an accident and found legally liable to repair the other driver’s car & street sign that was knocked over).
Side note to consider when deciding on your coverage amount. If you are looking to get a Personal Umbrella Policy (PUP) or added liability coverage on your home that exceeds $300,000 you will probably be required to have at least the 100/300 option for this coverage on your auto to qualify for the PUP or extra liability on your home.
PART B – Medical Payments: This coverage is optional.
Pays for necessary medical & funeral services to persons injured by accident without regard to fault or legal liability up to three years from the date of the accident. Options for amounts of coverage tend to range between $500 – $5,000 or more depending on the company and apply “per person.” (ie: 4 people injured in accident in your car, you have $5,000 maximum per person in coverage/$20,000 maximum total coverage for that accident).
PART C – Unisured (or underinsured) Motorist: This coverage is optional.
This insurance is for bodily injury only for you and in most cases others in your car.
This is extra coverage in case the driver who hit you, and was found legally liable to pay your bodily injuries, has no insurance or not enough insurance to pay for your injuries. It does nothing for the damage that was done to your car. (ie: Joe Bagofdonuts hits you and is found legally liable to pay for your injury. His Part A liability on his policy is 10/20. He has $10,000 to cover your injuries, but your bills = $20,000. You have to pay the other $10,000. But wait! you have 10/20 UM coverage. That gives you an extra $10,000 from your policy and you are covered. Your car incurred $25,000 in damage. That is not covered here, UM is only for bodily injuries).
This coverage has become more essential now that the State of Florida no longer requires all drivers to carry Part A bodily injury liability insurance which means there are many drivers on the road that do not have insurance to pay for injuries to other drivers that they are found legally liable for.
PART D – Coverage For Damage to Your Auto: This coverage is optional.
It has two coverages: Comp & Collision.
Collision is basically for crashes (car accidents, running into a tree, pole, etc.).
Comp is basically “other than collision.” (Tree falls on your car during a hurricane, object falls off a truck you are driving behind and damages your car, falling objects, theft, fire, any contact with birds or animals that cause damage to your car, etc.)
Naturally, there are certain exclusions to all of these parts in the Florida auto policy that are not covered in this article. Please ask if you have any questions.
That is a basic summary of the auto policy. Of course there are also options for coverage for towing, rental reimbursement, & other options. Common discounts include anti-lock brakes, car alarms, retired, good student, mature driver, homeowners, and even having good credit with various companies.