If you drive in Florida, you know how crazy it gets out there. Accidents
happen, fenders get bent, people get hurt. Or you're innocently parked in your
driveway and a tree limb crashes through your windshield. When disaster strikes,
auto insurance is there to protect you.
Why buy auto insurance?
1.) Auto insurance protects you against the financial risk
associated with personal injuries and property damage caused by auto accidents,
theft, vandalism, or natural disasters.
2.) Florida requires you to purchase at least a minimum
amount of liability coverage. Other types of auto insurance coverage may be
optional or required, depending on state regulations.
3.) If you have a car loan outstanding, you'll generally be
required by the lender to purchase at least a minimum amount of auto insurance.
Liability coverage
Florida law requires you to purchase a minimum amount of some or all of the
following types of liability coverage:
- Bodily injury liability: Protects your assets if you are
held liable for an auto accident in which other people are injured or killed.
- Property damage liability: Covers repairing or replacing
the autos or other property of other people.
- Uninsured/underinsured motorist coverage: Unless you live
in a "no-fault" state (where your own insurance will cover your
losses), this coverage insures you against losses caused by other drivers
with little (underinsured) or no (uninsured) auto insurance.
To adequately protect yourself, you may want to purchase much more than the
minimum amount of coverage required for Florida.
Collision, other-than-collision, and medical payments coverages
Although these types of coverage are optional in most states, it often makes
sense to purchase them, unless you can afford to pay for damages yourself.
- Collision: Pays to repair or replace your car
if it's damaged in an accident.
- Comprehensive: Insures your car against damage
caused by something other than an auto accident (e.g., theft, fire, flood,
vandalism).
- Medical payments or personal injury protection:
Covers various medical expenses not covered by your health insurance or your
passengers'.
And then the insurance company pays for everything, right?
Wouldn't that be nice? But it's not always true. Here are some things you'll
always need to cover yourself:
- Deductibles: The amount of money that you've
agreed to pay out of your own pocket before your insurance coverage kicks
in.
- Exclusions: Events or situations your policy specifically
omits from coverage, such as property damage or personal injury you intentionally
cause to others, or damage to your own car due to mechanical failure.
- Costs above limitations: Any
expenses for which you're responsible that exceed the caps on the dollar amounts
of coverage you're entitled to receive under your policy.
Please note that this description/explanation is intended only
as a guideline.