Auto Insurance
Posted: 6 July, 2023
Most states require you to carry auto insurance by law. There are only 2 states, Virginia and New Hampshire that car insurance is not mandatory. It is also very important to speak with your insurance agent to make sure that you are maintaining the required insurance coverage throughout your vehicle registration period, or your driving privilege and license plate may be suspended.
What is Auto Insurance?
Auto insurance is a contract between the policyholder that agrees to pay the premium and the insurance company that agrees to pay the losses upon the policy limit. There are several coverages in an auto insurance policy. Some may cover damages to your vehicles caused by an accident, it can also cover you if you are found liable for someone else’s bodily injury, as well as medical payments. A standard Florida auto insurance policy is comprised of six different coverages. Let’s go ahead and break it down for you.
- Bodily Injury: Pays for medical cost for the third party who is injured in the accident. This does not include yourself. This coverage will also help cover payments for legal defense in the event you are sued for damages.
- Medical Payment: Is a coverage that will cover the medical bills for you and anyone else that was in the vehicle at the time of the accident, regardless of fault.
- Uninsured Motorist: This coverage may help pay for your medical bills, pain, and suffering and lost wages if you are hit by a driver who doesn’t have insurance, a driver who doesn’t carrier enough insurance or a hit-and-run.
- Personal Injury Protection: This coverage is only available in the same states. In the state of Florida, it is required to carry this coverage. PIP will help you pay for medical expenses after an accident.
- Collision: This coverage is optional, however it may be required by your leaseholder or lender. This coverage may help you pay to repair or replace your vehicle if you're involved in an accident with another vehicle.
- Comprehensive: The coverage will cover your vehicle from things like theft, fire, or even vandalism. This coverage is also an option, but may be required by your leaseholder or lender.
- In addition to the coverages mentioned above, there are some other common types of coverages you might see on your Declaration page, such as
- Roadside assistance.
- Rental reimbursement.
- Ride-share.
- And even gap coverage
Written by: Premium Emilan