Auto Insurance Florida
According to Florida law, if you own a motor vehicle with four or more wheels you must carry $10,000 of personal injury protection insurance (PIP) and a minimum of $10,000 of property damage liability insurance. You may have a deductible of up to $2,000 for PIP coverage and $500 for Property Damage Liability insurance.
Personal injury protection insurance covers you regardless of whether you cause an accident (are "at-fault") -- up to the limits of the policy. PIP is designed to reduce the necessity of suing for reimbursement of medical bills and related bills from auto accidents. PIP pays:
- 80 percent of reasonable medical expenses
- 60 percent of lost wages
- $5,000 for death benefits
For car accidents that happen in Florida, PIP covers you and relatives who live in your home, certain passengers, and others who drive your car with your permission. Pedestrians and bicyclists are also covered if they are Florida residents.
For car accidents that happen outside Florida but inside the U.S. or Canada, PIP covers you and relatives who live in your home. In this case, you must be driving your own vehicle. Persons other than you or your relatives are not covered.
Property Damage Liability Insurance pays, for damage you or members of your family cause to another persons property while driving. The term "property" includes, for example, a fence, telephone pole or building, as well as another car.
Coverage applies even if you drive someone else's car. Depending on the terms and conditions of your policy, it may also include anyone else who uses your car without your permission.
All auto insurance policies must include a summary and an outline of coverage in clear understandable terms. "Plain language" descriptions must include the following:
- A brief description of the benefits and coverage and a breakdown of how the premium is applied.
- A summary of what is or is not covered under specific conditions. This would apply to such items as deductibles and limitations.
- A summary of the policy's renewal and cancellation provisions.
- A description of any credits or extra charges.
Although not required by law, many drivers buy other types of insurance coverage in addition to the mandatory PIP and property damage liability insurance. Common optional coverage include: bodily injury liability, collision, comprehensive, uninsured motorist, medical payment, towing, rental reimbursement, and accidental death and dismemberment.
Bodily Injury Liability insurance pays for permanent and serious injury or death to others when your car is involved in an auto accident, and the driver of your car is found to be at fault to some extent. The coverage applies only after PIP benefits are exhausted. The insurance company will pay for injuries up to the limits of your policy. It also pays for your legal defense if you are sued.
Bodily injury coverage pays for injuries caused by you and members of your family who live with you, even if they are driving someone else's car. It also covers others who drive your car with your permission.
Collision Insurance pays for repairs to your car if it collides with another vehicle, crashes into an object or turns over. It pays regardless of who causes the accident.
Collision insurance does not cover injuries to people or damage to the property of others.
Comprehensive Insurance pays for losses from incidents other than a collision. Examples would be fire, theft, windstorm, vandalism, flood or hitting an animal. Damage caused by falling objects is also covered.
If you have comprehensive coverage, windshield replacement is the only claim for which you are not charged a deductible. Florida law requires this waiver to encourage drivers to immediately replace damaged windshields.
It is illegal for the lending institution to require you to purchase insurance from a particular company or agent.
Uninsured Motorist Insurance only pays if you, your passengers or family members are hit by someone who is "at-fault" and does not have insurance, or has less liability insurance than you. This applies whether you are riding in your car, someone else's car or are struck by a car while walking.
Uninsured Motorist Insurance only pays for medical expenses, lost wages (beyond your PIP coverage) and for permanent injuries that you and your passengers suffer.
Property Damage and Bodily Injury Liability Insurance is required for drivers who are convicted of certain traffic violations. One example is driving under the influence of alcohol or drugs. If that driver had an accident where he or she was "at-fault" and could not pay for the damages, then he or she must thereafter obtain insurance coverage.
Medical Payments Car Insurance covers medical expenses beyond those covered by PIP which result from accidental injury. Medical payments Car insurance differs from bodily injury liability coverage in that it covers the medical expenses of you, members of your family, and your passengers regardless of who is "at- fault."
This applies whether you're in your car, someone else's car, or are struck by a car while walking. Note that health insurance also covers medical expenses from auto accidents beyond those covered by PIP.
Rental Reimbursement Coverage will permit you to be reimbursed for car rental according to the terms of the policy, if you are in an accident with your own car and it is not drivable.
If the other driver was "at-fault," that driver's liability insurance coverage may reimburse you for renting a vehicle similar to your own. Check with your agent and the insurance adjuster.
Rental cars companies often sell collision damage waiver which, although similar to insurance, is not insurance and does not fall under the regulatory authority of the Department of Insurance.
If you have collision coverage or property damage liability insurance, you may be covered for damage to rental cars driven by you, depending on the terms and conditions of your policy. You may also be automatically covered by your credit card company if you used the card to rent the vehicle. Therefore, the collision damage waiver may not be necessary.
Accidental Death and Dismemberment Insurance provides coverage, up to the limits of the policy, for accidental death or dismemberment in an auto accident, regardless of who is "at-fault." It covers you and relatives who live in your home.
If you believe you need legal advice, call your attorney.
