Auto Insurance

When you buy an auto insurance policy, you are buying a package of individual coverages. Each coverage protects you against different types of losses. Once you understand the various coverages, you can decide which ones to include in your personal insurance package. You can also determine the limits of coverage you will need. In addition basic personal auto insurance is mandated by most states and provides you with some financial protection in case of an accident. For example in Florida, it is illegal to drive without insurance. Drivers in Florida are required to have the following car insurance coverage: bodily injury, property damage and personal injury protection.The following are some common coverages found in an auto policy.

NOTE – Your policy may not contain all of these coverages:

Bodily Injury Liability (BIL)

Which covers costs associated with injuries or death that you or another driver causes while driving your car

Personal Injuy Protection (PIP)

Covers you regardless of whether you are at-fault in a crash, up to the limits of your policy. Meaning it provides reimbursement for medical expenses for injuries to you or your passengers. It will also cover lost wages and other related expenses

Property Damage Liability (PDL)

Which reimburses others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building or utility pole.

Collision

Reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from rolling your car.

Comprehensive

Provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards—even getting hit by an asteroid.

Medical Payments Coverage

Pays, up to the coverage limits, for reasonable and necessary doctor, hospital and funeral expenses for you and your passengers injured or killed in an accident, regardless of who is at fault. Payments are usually limited to one to three years after the accident. This coverage is optional in most states without no-fault insurance systems.

Uninsured/Underinsured Motorists (UM/UIM)

Coverage pays up to the coverage limits for pain and suffering which is not covered by medical, disability and PIP. Underinsured motorist coverage pays for bodily injury to you or your family resulting from the negligence of someone whose liability insurance limits are insufficient. The definition of an underinsured motorist varies from state to state

Rental Reimbursement

Pays up to a specified amount for rental vehicle charges while your vehicle is being repaired for damage covered under your policy. If you prefer not to incur the cost of renting a vehicle yourself and cannot be without a vehicle while yours is being repaired, you might consider this coverage.

Towing and Labor

Covers some costs incurred for services rendered at the place of breakdown or for towing to a repair shop. It covers the delivery of gas, oil or a battery, but not the cost of these items. If you lock the keys in the vehicle or need a tire changed, this may also be covered. These services are often included in auto club memberships, which can result in unnecessary duplicate coverage