Auto insurance

If you are in an auto accident, the first thing that comes to mind is “am I covered”? That would depend on both coverage you purchased and your property/liability limits. The auto insurance policy is broken down basically in the lower parts. Part A is liability part B is medical, part C is uninsured motorist and finally part D, damage to your automobile.

Florida state law will dictate the minimum auto insurance you will need to purchase. Florida, is a P.I.P State meaning personal injury protection is required by Florida law which mandates that everyone who owns a car in the state of Florida must have PIP coverage and additional $10,000 of property damage liability to cover an automobile or other property that you may damage if you cause an accident.

The problem, however is the minimum limit before the accident and after. If you are in an accident which involves bodily injury or one car must be towed away then you must show that you had at the time of the accident, both bodily injury and property damage insurance of at least $10,000 per person $20,000 per accident for bodily injury and $10,000 for property damage.

The limit you purchase must be taken seriously. Your Florida Insurance agent will always advise that you purchase more than the minimum insurance amount required by state law. If you do not purchase enough liability insurance your assets and your possible future earnings could be at jeopardy. There is an old adage that says you should have enough insurance to cover one dollar more than you’re sued for. However, most of us do not have crystal balls and therefore must rely on the advice provided by a licensed Florida auto insurance agent.

The other parts of the policy, medical payments, in the state of Florida subsidizes the personal injury protection and usually pays the portion of the PIP that is statutorily cut out. Uninsured motorist coverage is for bodily caused by an uninsured driver. While not required, it is strongly encouraged that you purchase this additional coverage.

Part D covers your automobile. Generally, there are two types of coverage - collision and other than collision. Collision coverage will pay if your automobile is in an accident whether or not you are at fault. If you are at fault than your coverage is subject to your policy’s deductible. If you're not at fault and the other person has coverage then you will be paid by the other driver’s insurance company and your deductible will not apply.

Remember, always take the time to talk and listen to your licensed Florida insurance agent.