Auto Insurance Basics

auto insurance basic

Here’s what you actually need to know…

When you’re driving, anything can happen in a split-second. Auto insurance is there to help protect you, your passengers, and other parties from becoming financially impacted by an accident, whether it’s a small fender-bender or a serious crash. And in the State of Florida, if you have a Driver License, you need auto insurance coverage.

Understanding Different Types of Auto Insurance

  • Bodily Injury Liability Coverage: This is the foundation of all car insurance policies. This coverage applies to injuries that the policyholder and family members listed on the policy cause to someone else. It also may include coverage when driving other peoples’ cars with permission.

However,  this may not cover injuries sustained by you and your passengers.

  • Property Damage Liability: This coverage helps pay to repair or replace damage you cause to someone else\’s vehicle or property.

Coverage may include:  

    • Someone else’s car
    • Telephone poles
    • Fences
    • Buildings or other structures
  • Collision Coverage: A coverage that helps pay to repair or replace your car if it is damaged in an accident with another vehicle or object. Collision coverage may not always be required but it may help protect you from a huge financial loss after an unforeseen accident.Coverages may include damages after crashing into…
    • Another car
    • Object
    • Structure
    • Tree
    • Pothole
    • Flipping your car
  • Comprehensive Coverage: This coverage may reimburse you for losses due to damage caused by natural forces or something other than a collision with another car or object.Comprehensive coverage may protect your vehicle from:
    • Falling objects
    • Natural disasters
    • Fire
    • Vandalism
    • Theft
    • Accidents with animals (ex.hitting a deer)
  • Medical Payment or Person Injury Protection (PIP): Person Injury Protection (PIP) is required in Florida and covers treatment for things such as injuries and other expenses for the driver and passengers in the policy holder\’s car, regardless of who is at fault. Coverages may include: 
    • Medical Payments
    • Lost Wages
    • Funeral Costs
  • Uninsured and Underinsured Motorist Coverage: This coverage may reimburse you, a member of your family, or designated driver if one of you is hit by an uninsured driver or a driver who doesn’t have sufficient insurance to pay for your total loss.

Additional Coverage Options: 

  • Rental Car Reimbursement: This may cover the cost of your rental car while your vehicle is being repaired after an accident.
  • Roadside Assistance: In the case that you find yourself stranded on the side of the road, this coverage may include the cost of towing, fuel delivery, changing the tire, locksmith and battery services.

So, what do you actually need?

Basic car insurance coverage is often referred to as whatever the state forces you to purchase. 

Minimum Auto Insurance Requirements in Florida: 

Floridians must carry property damage liability and personal injury protection (PIP) in the following amounts:

However, most experts will recommend buying more than the minimum requirement to ensure that you are protected in the case of an accident. The smartest thing you can do is to stay informed on your options and identify your coverage needs and budget.

At Boyd Insurance & Investments, we understand that figuring out how much or what type of car insurance you need can be tricky. Our advisors are here to help provide you with protection through all of life’s unforeseen circumstances. Get started today! Request an online quote today or call us at (941) 745-8300.

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