If you live in Florida, and you own a car, then dealing with Florida Auto Insurance is just a fact of life. While your Florida auto insurance policy may not be on your mind on a daily basis, if you are most people, it enters your mind when you receive your auto insurance bill. It is important that you understand the auto insurance coverage you have so that you possess the insurance coverage you think you have if you have an insurance claim. Because of this, here are eight important aspects of a Florida auto insurance policy you should consider.
It’s a Florida Auto Insurance Requirement: You Have To Carry Liability Insurance Coverage On Your Auto Insurance Policy
In Florida, you legally have to carry liability insurance coverage on your Florida auto insurance policy. There are two components:
1. Property damage liability insurance coverage pays out if you are found responsible for damage to property.
2. PIP of Personal Injury Protection pays out for injuries that you cause to other people.
Each state has different liability limit requirements. If you decide to go without required liability insurance coverage, you run the risk of fines, suspension of your driver’s license, or being caught without coverage in the event you are involved in an accident.
When It Comes To Florida Auto Insurance, The State Minimum Liability Limits Aren’t Enough
If you decide to maintain the state minimum liability limits on your Florida auto insurance policy, you could be left paying thousands of dollars out of pocket if you are found responsible for causing an accident that costs more than your liability coverage limits.
For example, Florida only requires residents to have $10,000 per person for property damage and $10,000 per accident for personal injury protection. Sometimes, injuries and property damage from an incident may go beyond these low insurance policy limits. If you are found liable for damages that exceed these low limits, your assets and future earnings can be at risk. In other words, lowering your liability limits is a really bad place to try to save a few dollars on your insurance policy.
When It Comes To Florida Auto Insurance, Not Everyone Has Car Insurance
As crazy as it sounds, there are people driving around that do not have even the minimum amount of Florida auto insurance. Uninsured motorist insurance coverage is helpful because it will reduce financial stress. It pays out for your medical bills and damage to your vehicle in the event you are involved in an accident caused by a motorist who is underinsured or uninsured.
Medical Payments Coverage Is Not Designed To Replace Health Coverage
Insurance companies will commonly offer medical payments coverage, and this can help pay for your emergency room or hospital expenses in the event you are injured in an accident, regardless of who is at fault. It is meant to help pay co-payments and deductibles as well as other expenses that aren’t covered by your health insurance policy.
Your Bank Can Force You To Carry Collision and Comprehensive Coverage
If you don’t notify your bank about your insurance coverage on your vehicle or you don’t have coverage on your vehicle, your lender can legally purchase “force-placed” physical damage from an insurance carrier that it selects, and they can charge you for those insurance premiums. Force-placed coverage is usually more expensive than physical damage insurance coverage you obtain on your own via your Florida insurance agent so don’t let this happen.
Get Your Florida Insurance Policy Discounts
Be sure to tell your insurance agent as much as possible so that you can take advantage of all of the discounts you are eligible. Sometimes you can get additional discounts if you are a homeowner, avoid filing claims or even if you go to a defensive driving seminar.
When It Comes To Florida Auto Insurance, Your Driving History Makes a Difference
Good drivers pay less. If you have moving violations or speeding tickets on your record, your car insurance company may assess a premium surcharge. Accidents that you cause can also raise your insurance rates; however, accidents for which you are not at fault do not affect your Florida insurance premiums.
Increase Deductibles To Lower Your Florida Auto Insurance Rates
You can adjust deductibles. The higher the deductible that you elect to carry, the less your insurance premiums will be. A deductible is an amount you pay out-of-pocket for car repairs or car replacement before your collision, or comprehensive damage coverage takes effect. The higher the deductible you decide to carry, the less you will pay out for physical damage coverage. However, you need to evaluate your ability to pay this portion of the repair or replacement costs before selecting a high deductible to lower your rates.
Because Florida insurance is not a one-size-fits-all topic, it is important to have an expert team of seasoned professionals to guide you. Even if you think that you already work with a good insurance agent, it never hurts to have a second opinion about your Florida insurance coverage. We are happy to help you any way we can. Contact us.
Would you like more information about Florida Auto Insurance? Read our other blog post.