AUTO INSURANCE
Bodily Injury Liability
This coverage pays for bodily injury incurred by others and caused by you (i.e. you are at fault and therefore liable). Bodily injury can be referred to as a third-party coverage, since it will not pay for your own bodily injury. Some expenses that result from bodily injury include ambulance service, emergency treatment, doctors’ fees, physical rehabilitation, and loss of income or earning capacity as well as legal and court costs. Bodily injury limits are in a “splits” form (i.e. 100,000/300,000). For example, splits limits of 100,000/300,000 means the company will pay as much a 100,000 to each injury person, but not more than a total of 300,000 per accident. Bodily injury person protects, your assets. If you have significant assets to protect, such as home, cars, and savings, we strongly recommend purchasing high limits (i.e. 100,000/300,000 or more). If expenses incurred by the third party are greater than your purchased limit, your assets may be sacrificed. In general, the higher the limit selected, the more expensive the coverage. Bodily injury is mandatory, and therefore, a minimum limit must be purchased.
Property Damage Coverage (PD)
This coverage pays for property damage incurred by others that was caused by you. (i.e. you are at fault and therefore liable). Property Damage can be referred to as third-party coverage, since it will not pay for your own property. For example, it covers damage to another car, a garage door, or a lamp post. Property damage serves to protect your assets. If you have significant assets to protect (i.e. home, cars, savings), we strongly recommend purchasing higher limits (i.e. 50,000 or more). If expenses incurred by the third party are greater than your purchased limit, your assets may be sacrificed. In general, the higher the limit selected, the more expensive the coverage. Property Damage is mandatory, and therefore, a minimum must be purchased.
Personal Injury Protection Coverage (PIP)
This coverage pays for reasonable medical expenses, as well as a percentage of your lost earnings, if not specifically excluded, and is subject to the limits you select; household, relatives, and other persons occupying your car are protected. Individuals covered under the policy may also be protected when injured as a pedestrian. Therefore, PIP is first-party coverage, since it will not pay benefits for those injured in another car. (Protection is provided through bodily injury coverage). This coverage is also referred to as “NO FAULT” coverage since benefits are awarded regardless of fault.
Personal Injury Protection Deductible, Florida
The deductibles represent the amount you will pay out-of-pocket in the event you have selected personal injury protection coverage, and an incident occurs that falls under this category. In general, the higher the deductible you select, or the more operators and household members it is applied to, the less expensive the coverage.
Medical Payments Coverage
This coverage pays for necessary medical and hospital expenses, household, relatives, and other persons occupying your car are protected. Individuals covered under the policy may also be protected when injured as a pedestrian. This coverage may vary depending upon the state.
Collision Coverage
This coverage helps pay for repairs to a vehicle damaged by a collision with another vehicle or object. Examples of this include a collision with tree, trash can or garage door. Collision may also provide coverage if a car rolls over even if another vehicle is not involved. To obtain this coverage, please choose a deductible, which represents the portion of damages you would pay before your insurance coverage would activate. If you do not wish this coverage, simply choose “No Coverage”.
Comprehensive Coverage
This helps cover damage to a car resulting from incidents other than those governed by collision coverage. Example of this may include damage or loss resulting from fire, theft, vandalism, falling objects or certain natural disaster or accidents resulting form a collision with an animal. To obtain this coverage, please choose a deductible, which represents the portion of damages you would pay before your insurance coverage would activate. If you do not wish this coverage, simply choose “No Coverage”.
Uninsured or Underinsured Motorists Bodily Injury Coverage
This coverage protects you and any other persons occupying your auto, if you are injured by a driver with no liability insurance, or by an underinsured driver, or by a hit-and-run driver who is held legally responsible for your injuries. This coverage puts the insured in the same position as if the responsible motorist had liability insurance. If the insured is not legally entitled to reimbursement from another motorist, Personal injury protection (PIP) or medical payments coverage and/or the insured’s health/disability insurance would be an alternative source of recovery.
Uninsured or Underinsured Motorist Property Damage
This coverage protects your auto, if damage is caused by a hit-and-run driver with no liability insurance, or by an underinsured driver, of a hit-and-run driver who is held legally responsible for the damage.
Your auto insurance policy will provide protection under a variety of circumstances. The example may help you understand which auto insurance coverage’s are designed for a given event.
