Automobile insurance is complicated. This brief guide will make it easier for you to understand the coverages, deductibles and limits and how they can work for you.
Also called Florida No Fault Insurance, covers you – regardless of fault (i.e. whether or not you cause the crash) – up to the limits of your policy. Your PIP will also cover your child, members of your household, certain passengers who lack PIP Insurance as long as they do not own a vehicle. People riding in your vehicle who carry PIP will receive coverage under their own PIP for their injuries, and certain licensed drivers who drive your vehicle with your permission. PIP also covers your child if he or she suffers an injury while riding on a school bus. PIP coverage protects you while in someone else’s vehicle, as a pedestrian, or bicyclist if you suffer an injury in a crash involving a motor vehicle. The Florida Motor Vehicle No-Fault Law requires all owner/registrants of a motor vehicle with four wheels or more to carry a minimum of $10,000 of Personal Injury Protection (PIP) and $10,000 of property damage liability (PDL) if you own a motor vehicle in Florida. Florida law requires you to maintain PIP/PDL insurance continuously throughout the licensing and registration period.
Coverage pays for serious and permanent injury or death to others when you cause a crash involving your automobile. Your auto insurance company will pay for injuries up to the limits of your policy and provide legal representation for you if you get sued. In particular, your company pays for injuries caused by you or members of your family who live with you, even if they were driving someone else’s vehicle. It may also cover others who drive your automobile with your permission. This coverage also provides you with legal defense in the event you are sued by the injured party.
Coverage pays for damages you or members of your family cause (and are liable for) to other people’s property in a crash involving a motor vehicle.
You choose your liability limits as either Split Limits or a Combined Single Limit (CSL). Split Limits divide Bodily Injury liability limits per person and per accident. (For example, $100,000/$300,000 means that the insurance company will pay for up to $100,000 for Bodily Injury liability per person in a covered crash and up to $300,000 per crash.) For Property Damage, the company will pay up to the limit you select per accident. CSL combines your liability coverage into one total limit per accident ($300,000).
Coverage pays for damages if your vehicle overturns or if it collides with another vehicle or object.
Collision coverage is subject to a deductible amount that you choose. The most frequently selected deductible amount is $500. You should select a deductible amount that you are comfortable with â€” if there is a Collision claim on your policy, this will be the amount you’ll generally be required to pay.
Also called Other Than Collision pays for damage caused by an event other than a car collision, such as fire, theft, vandalism, hail or flood. Comprehensive also covers damage from hitting an animal and covers the cost of a rental if your car is stolen.
Comprehensive coverage is also subject to a deductible amount â€” usually, but not necessarily the same amount you choose for Collision coverage.
Coverage applies no matter who is at fault and covers the cost of reasonable and necessary medical care provided to you as a result of a car accident.
Coverage pays for damages that you are legally entitled to recover for your bodily injury. In general, this coverage provides what you would have received from the other person’s insurance company if that person had insurance. This coverage may also protect you if the person who caused the damage does not have enough auto insurance.
Coverage, will reimburse you for rental car charges incurred while your vehicle is being repaired after a covered accident. You can only buy Rental Reimbursement coverage if you buy Collision and Comprehensive.
Sometimes called Towing & Labor covers labor costs incurred at the place where your vehicle becomes disabled as a result of a mechanical/electrical breakdown, dead battery, flat tire, and/or lock-out. We will also help if you run out of gas or other fluid or become stuck in snow or mud within 100 feet of a road or highway. If necessary, Roadside Assistance will cover towing to the nearest qualified repair facility.