Understanding Your Auto Insurance

Every registered automobile owner in the state of Florida is required to have auto insurance. The problem is not obtaining insurance, but really understanding what you are paying for.

If you get into a car accident and you are at fault, it is important that you have liability insurance. BI, or bodily injury, will help cover claims against you for personal injuries, medical bills and/or lost wages.

On the other hand, UM, or uninsured motor insurance, is absolutely essential in order to protect yourself in the event of an accident. Uninsured or underinsured motorist coverage can pay for injuries to you and your passengers, when there is an accident and the other driver is both legally responsible for the accident and considered “uninsured” or “underinsured.”

You might think that because your state requires insurance, most people have it. However, according to the Insurance Research Council, the estimated number of uninsured drivers can reach 25% in some states.

It’s usually relatively cheap to add uninsured/underinsured motorist protection to your car insurance policy, especially considering the amount of protection it offers. It could pay your medical bills, lost wages, and pain and suffering. If someone hits you or your car and is legally responsible for the damages, you won’t get any money from them if they don’t have money to give you. Especially during times when people are struggling economically, many drivers either don’t have insurance or don’t have enough. If you have UM/UIM, you can get money even if the other driver can’t pay.

A third kind of protection, Personal Injury Protection, also known as PIP, is also mandatory in the state of Florida. The great thing about PIP is that it is “no-fault” insurance coverage. This means it covers your medical bills and lost wages regardless of who is at fault for the accident. It may also provide insurance for the passengers of your car, the relatives who live with you and other people that are involved in the accident under certain circumstances. Another good thing about Personal Injury Protection being no-fault is that the person owning the Personal Injury Protection should not have their insurance premiums increased if they need to file a Personal Injury Protection claim.

When signing up for auto insurance, it is important to have a somewhat comprehensive understanding of what each element of the policy offers. Dedicating just a few minutes to understanding the nature of your auto insurance can prevent you from paying for coverage you may not need. On the other hand, it may encourage you to obtain coverage that may be financially beneficial to you in the event of an accident.

Please feel free to call our office at 561-266-9191 or email us at daronberg@build.simple.biz to discuss the different types of insurance available and to allow us to help you make an informed decision.

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