Making a well-educated decision is crucial when it comes to weighing your best auto insurance coverage options. Most of us have auto insurance because it is required by law, however, there are many factors to consider as you begin to evaluate your needs. How do you know which auto insurance company is right for you? This will likely be determined by coverage. How much and what type of coverage do you need?
It’s important that you understand what it is you’re paying for each month and how well this meets your needs. At the very least, you’ll need to maintain the mandatory minimum coverage required by the State of Florida. Each state varies when it comes to the minimum coverage they require. In Florida, this means that whichever auto insurance plan you choose must cover Property Damage Liability and Personal Injury Protection.
Property Damage Liability
If you’re involved in a car accident and are deemed at fault, you will be liable to pay for the damages incurred by the other vehicle. All drivers in Florida are required to carry auto insurance coverage that includes Property Damage Liability. This insurance covers costly property damages that you cause to another individual, may it be a car, bike, garage door, etc. The minimum requirement you must carry in Florida is $10,000. It’s important to emphasize that this covers the expenses of the other driver if you are at fault for the accident.
Personal Injury Protection
If you’re involved in a car accident and are injured in any way, you run the risk of racking up some serious medical bills. If you become injured, there’s a possibility that you may end up missing work as a result. Personal Injury Protection, otherwise known as PIP, is no-fault insurance that the state of Florida requires all drivers to carry. It covers a maximum amount of $10,000 in medical bills and lots wages (covers up to 60% in lost wages).
To remain a lawful driver in the State of Florida, you are required to carry insurance coverage for the property of the other driver and your own physical well-being with PIP. This does not include the physical well-being of the opposing driver OR the protection of your own property. You may think, “That’s okay, the other driver should have the same coverage I do,” however, that is often not the case.
As reported by the Insurance Research Council (IRC), one in every eight drivers is uninsured. To best protect yourself against uninsured or underinsured drivers, you may wish this to your list of needs.
Uninsured Motorist and Underinsured Motorist insurance (UM)
An insurance plan with this coverage will protect you against at fault, uninsured or underinsured drivers. If you forgo this form of coverage, you run the risk of sustaining major financial losses if injured in a car accident. The uninsured or underinsured driver may not be able to afford to compensate you fairly for property damages, medical bills or lost wages in the event of an accident.
While you may be compliant with the state by carrying an auto insurance plan by carrying the minimum coverage with Property Damage Liability and Personal Injury Protection, you may come to decide that this does not fully meet your individual needs.
Remember, Uninsured or Underinsured Motorist coverage (UM) protects you and Florida does not require drivers to carry Bodily Injury coverage in the event they hurt you in an accident. It’s important to remember to look out for yourself, re-evaluate your plan regularly and understand the plan you choose.
There are many other types of auto insurance coverages not discussed in this article including Bodily Injury, Comprehensive, Roadside Assistance and Collision that should be factored into your auto insurance decision as well.
Be sure to shop around, you may be able to find a better plan for you and at a reasonable rate!
Always remember we are here as your legal partners and happy to answer any questions you may have about the best insurance policies to choose to protect you, your loved ones and your property.
All Our Best,
The Pipas Team