Vehicle owners know they need auto insurance in Florida. It’s the law. Insurance covers the replacement cost for property damage and medical expenses after an accident. There are, however, many different auto insurance policies that cover many different needs as well as various levels of insurance.
Whether an auto collision is your fault or somebody else’s, your auto insurance coverage is there to help. How much it helps is determined by the different options that comprise your insurance policy.
Financial Protection with the Right Insurance
Choosing the best type of auto protection involves understanding what each type of insurance can cover, as well as how much it will cover.
The correct insurance provides financial protection if there is an accident causing damage to your car and occupants, or another car or person.
There are a variety of insurance policies available, and some of them are required by state law. Others are optional. Personal injury or personal liability coverage should be your primary concern when looking for insurance. At the ABC Dennis Insurance agency, we specialize in insurance that best suits your needs and budget.
Understanding What Insurance Covers – And When
Insurance policies cover you and the occupants of your car, whether it is your personal vehicle or if you are behind the wheel of another. Coverage is available to protect someone who is not on your policy when they drive your car with your consent.
A standard auto insurance policy covers your driving – including your commute, errands, and road trips. However, it does not cover any driving activities that are of a commercial nature, such as driving for a rideshare company. There are insurance add-ons to extend your coverage.
Required Insurance Coverage
Florida law requires operators of automobiles to have insurance. The insurance covers you up to the limits of your policy, regardless of who caused an accident. There are three primary types of auto insurance:
- Liability protection helps cover damages for injuries and property damage to others for which you are legally responsible as a result of a covered accident.
- Collision coverage helps cover damage to your car after an accident involving another vehicle and may help to repair or replace a covered vehicle.
- Comprehensive coverage helps provide coverage in the instance of an accident involving another vehicle. It may also pay for damage to your car in the event of vandalism, weather events, and collisions with animals.
Auto insurance costs are determined by the protection options you select, the amount of driving, the type of driving, and your driving record. Though the state has mandatory minimum car insurance requirements, drivers typically need more coverage to protect themselves and their families.
Additional car insurance options can cover theft and losses resulting from non-accident events. This type of coverage is called comprehensive insurance. The various types of comprehensive coverage include:
- Medical payments coverage helps pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault.
- Emergency road service coverage helps drivers when their vehicle breaks down.
- Uninsured motorist coverage protects you in an accident with an at-fault driver who doesn’t carry liability insurance. It also protects you in an accident with an at-fault driver whose liability limits are too low to cover the damage or medical expenses.
Drivers who lease or finance their vehicle may be required by the finance company to carry certain types of insurance that covers damage to the car. Often, the required policy usually only covers the market value of the car rather than what you paid for it. If your car is stolen or damaged beyond repair, there can be a gap between what basic insurance will cover and what you owe on the vehicle. Gap Insurance can help cover the difference in what regular insurance will cover and what is owed on the car.
You may be eligible for a discount if your vehicle has certain safety features or if you have a safe driving record. One of the primary determining factors in the cost of an auto insurance policy is the amount of the deductible, which is the amount of money you are willing to pay for a claim.
ABC Dennis Insurance works with you to make sure your assets and income are protected should you be involved in an accident. We can help you find a policy that is right for your needs.
Auto Insurance Basics—understanding your coverage (Insurance Information Institute)
A Beginner’s Guide to Car Insurance (Investopdeia)
Auto Insurance Basics (Insurance Institute for Highway Safety)