This guide explains the different types available
For the most part, insurance seems pretty straightforward: You buy a policy to cover something of value. And while that’s the basic gist of it, there is a lot more involved. Car insurance, for example, has many different types of coverage. This guide will help explain them.
If you drive, you are legally required to have liability insurance. This policy will cover you in the event that you cause an accident. Liability insurance takes care of property damage expenses and any medical bills. However, it will only cover what’s included in your policy. The minimum requirement for liability insurance in Florida is $10,000. If the accident you cause results in damages higher than that, the extra money comes out of your pocket. This is why it’s a good idea to go with a higher coverage amount.
Collision insurance covers the costs of repairing your car after an accident no matter whose fault it may have been. If your car is beyond repair, you will be paid the value of your car. People who drive older cars sometimes don’t feel the need to have collision insurance, as it just wouldn’t be worth repairing or replacing. But for a newer car or expensive model, it would be foolish not to have it.
Personal Injury Protection (PIP)
Repairing a vehicle can be costly, but it usually doesn’t compare to medical expenses. Because even a minor injury can incur thousands of dollars, PIP is invaluable. Regardless of who was at fault for the accident, PIP covers the medical costs of the driver and any passengers. PIP also pays lost-income benefits. Not every state requires this coverage, but Florida does. And like liability insurance, the minimum requirement is $10,000.
Not all car damage is the result of an accident. There are quite a few other things that can hurt your auto, such as hailstorms, falling branches, and even vandalism. Liability and collision coverage won’t help you in these instances, but comprehensive insurance will. This will also cover you in the event your car is stolen. Comprehensive insurance may be a little pricey, but it could be worth the expense.
Uninsured/Underinsured motorist (UM/UIM)
As mentioned, every driver is obligated by the law to carry liability insurance, at the minimum. However, there are still quite a few people who decide to risk it and don’t have any coverage. If you get into an accident with someone without insurance and they are at fault, in most cases you’d be out of luck. But with UM/UIM insurance, you would be covered. The same is true if the other driver has insurance but it’s not enough to take care of your expenses.
Those five are the main types of insurance policies, but there are a few others worth knowing about:
• Towing and labor – This covers towing charges and labor fees if someone needs to be called to change a tire, charge a battery, etc.
• Rental reimbursement – If you have to rent a car while yours is being repaired, this policy will give you a set amount to go towards the costs.
• Antique auto – Because antique cars have special maintenance and restoration requirements, this type of insurance will cover those expenses.
As you can see, car insurance isn’t as cut and dried as it may seem. If you’re shopping for auto insurance and you’re not sure what you need to keep you and your vehicle protected, talk to Avante Insurance. We will gladly explain your options in further detail and help you make the best choice. You can call us at 305-648-7070 or just send us a message through our online contact form.