Auto Insurance Coverage FAQ
The following automobile insurance coverages are available through your agent so that you can decide which types and amounts of insurance you need:
1. Personal Injury Protection coverage (PIP) This part of your Florida automobile insurance coverage is required by the law in the amount of $10,000 and pays 80% of medical expenses, 60% of gross wage loss, plus all expenses reasonably incurred in obtaining services that, except for the injury, you would have performed for the benefit of your household (such as housekeeping and child care). PIP also pays reasonable mileage or expenses for transportation to and from doctors’ offices for medical treatment. All PIP payments are made by your own insurance company, regardless of whose negligence caused the accident. That is why PIP is often referred to as No-Fault coverage. PIP is payable for any injury which arose out of the use, operation or maintenance of a motor vehicle (but not a motorcycle). PIP may also be offered with a deductible, which reduces the amount of coverage and increases your out-of-pocket expenses if you are injured in your accident.
WE STRONGLY RECOMMEND THAT YOU DO NOT GET A DEDUCTIBLE ON YOUR PIP!
2. Property Damage coverage – A minimum of $10,000 is required by Florida law. This coverage pays expenses incurred as a result of damage to property that you cause as a result of your negligence in operating a motor vehicle.
3. Medical Payments coverage – This optional coverage will pay the 20% of medical bills that PIP does not cover and will also pay your bills at 100% after your PIP coverage is exhausted. This coverage is offered in various amounts.
WE STRONGLY RECOMMEND THAT YOU PURCHASE THIS OPTIONAL COVERAGE!
4. Bodily Injury Liability coverage – This optional coverage pays for injuries which you cause as a result of your negligence in operating a motor vehicle. It is offered in varying amounts, starting with the limits of $10,000/$20,000. This means that your company will pay up to $10,000 per person injured by your negligence and a maximum of $20,000 for all persons injured in a single accident. The more assets you own, the more bodily injury liability coverage you should obtain because the injured person may elect to forego your bodily injury liability coverage and make a claim against your assets, if you do not have enough coverage to pay for all of that person’s injuries.
5. Uninsured/Underinsured Motorist coverage – This optional coverage pays benefits to you if you are injured by a driver or vehicle which is either uninsured or does not have enough bodily injury liability insurance to cover all of your medical expenses, wage loss, and injuries. You cannot purchase uninsured/underinsured motorist coverage in an amount greater than your bodily injury liability coverage. However, you can elect to purchase uninsured/underinsured motorist coverage in an amount less than your bodily injury liability coverage.
WE STRONGLY RECOMMEND THAT YOU PURCHASE AS MUCH UNINSURED/UNDERINSURED MOTORIST COVERAGE AS YOU CAN AFFORD BECAUSE THERE ARE MANY DRIVERS ON FLORIDA ROADS WITH NO BODILY INJURY LIABILITY COVERAGE.
DON’T BE FOOLED INTO THINKING THAT YOU DON’T NEED THIS COVERAGE IF YOU HAVE HEALTH INSURANCE. YOUR HEALTH INSURANCE WILL ONLY PAY FOR YOUR MEDICAL EXPENSES BUT DOES NOT COVER YOUR WAGE LOSS OR INJURIES THAT MAY BE ONGOING.
Uninsured/underinsured motorist coverage may also be stackable. This means that it can be combined with other uninsured/underinsured motorist coverage issued to relatives residing in your household and on other vehicles which you may own or occupy.
WE STRONGLY RECOMMEND THAT YOU PURCHASE STACKABLE UNINSURED/UNDERINSURED MOTORIST COVERAGE.
6. Collision coverage – This optional insurance covers repair or replacement of your vehicle when it is damaged in an accident, regardless of who was at fault. This coverage also has various deductible options, which reduce your insurance cost, but increase your out-of-pocket loss if your vehicle is damaged.
7. Comprehensive coverage – This optional coverage pays for damage to your vehicle from fire, theft, vandalism, etc. This coverage can also be purchased with a deductible, which cannot apply to a damaged windshield. Therefore, your insurance company will pay for your broken windshield at no cost to you.
The information provided above should be used as a brief guide in understanding Florida automobile insurance. It was not intended to explain all the fine details of automobile insurance. Furthermore, the law and the policies offered by insurance companies can change at any time. Therefore, if you have questions about auto insurance, you should contact your attorney or call MANUEL & THOMPSON, P.A. at (800) 832-7225 . Don’t hesitate to call because after you have an accident, it will be too late to change your coverage.