auto insurance

Auto Insurance

Why do I need auto insurance in Florida?

Auto insurance protects you against financial loss in the event of an accident, primarily for physical damage or bodily injury. An auto insurance policy is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Specific terms of auto insurance coverage vary by legal regulations in each state and company guidelines.

What does Florida auto insurance cover?

Property damage liability: Provides liability coverage to others for damage to someone’s property, up to the limit of liability you select. The minimum amount of coverage required in the state of Florida is $10,000.

Bodily injury liability: Provides liability coverage to others for injury or death resulting from an accident in which you are found to be at fault for. Bodily injury liability, also known as BI, can help pay for the injured party’s medical expenses and lost wages, and may also help provide compensation for legal defense. The limit, or the amount covered, is selected when you purchase your auto insurance policy. This is not required in the state of Florida but highly recommended.

Collision coverage: Collision coverage is for damage to your own vehicle in an accident. Collision is generally optional unless your vehicle is financed or leased. This coverage applies anytime there is a collision with another vehicle or any stationary object such as a tree, mailbox, building, sign, etc.

Comprehensive coverage: Covers damage to your vehicle for losses resulting from things other than collision, such as damage from fire, theft, falling objects, storms, collision with birds or animals, and glass breakage.

Uninsured motorist coverage:  This coverage is also known as underinsured motorist coverage or UM. It covers bodily injury to occupants of another vehicle that you or passengers of your vehicle are legally entitled to. Not everyone is required to carry BI coverage in Florida so if you’re injured in an accident and the other driver is at fault but uninsured (or underinsured), your UM will help with medical expenses.

Medical payments: Covers necessary expense for medical or funeral services provided to you and your passengers as a result of an accident.

Personal injury protection:   Also known as PIP coverage, this is for injuries sustained by you when you are a driver or passenger of any vehicle, not just your own. While liability coverage follows the vehicle, PIP follows the insured person. This can also apply to passengers of yours if they do not have their own PIP and cannot get it from a household member’s insurance. Eligible parties are entitled to reimbursement of 80% of reasonable and necessary medical expenses, as well as 60% of lost wages, as a result of a covered auto accident. Florida law requires this coverage for every vehicle owner. Even if you don’t own a vehicle, you can purchase a named-non owner policy with this coverage for when you drive someone else’s car or are a passenger

Loss of use coverage:  This is optional coverage that helps pay rental vehicle costs when your insured vehicle is disabled as the result of a covered accident or loss. Florida policies typically have a daily limit up to one month, which can possibly be extended under certain circumstances.

Towing and labor coverage:  This may also show as Roadside Assistance coverage and applies if your vehicle needs to be towed, has a flat tire, runs out of gas, has a dead battery, etc.

Auto Insurance Policy Enhancements

The Following Policy Enhancements are available from many companies that we represent:

Gap Insurance – Gap insurance covers the difference between what you owe on a car and what it is worth if your car is totaled in a covered loss, such as an accident or theft. This prevents you from having to continue payments on a vehicle you no longer have because you were “upside down” on the loan.

New Car Replacement – New Car replacement will replace your car with a current year model if your car is totaled in a covered loss, such as an accident or theft. This coverage is usually only available for a certain number of years after the car is purchased and it must have been purchased brand new.

Diminishing Deductibles – Diminishing Deductible coverage reduces your deductible over a period of time contingent on the insured having no accidents during that time period. Therefore, you could be paying a lower premium to carry a high deductible but have earned a lower or zero deductible as a reward of being accident free.

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