Purchasing Automobile Insurance

Purchasing Auto Insurance

Florida law requires that you purchase a minimum of $10,000 of personal injury protection and $10,000 of property damage liability. PIP covers you up to your limits of coverage regardless of fault in an accident. PIP will cover:

· 80 percent of medically necessary expenses

· 60 percent of lost wages

· 100 percent of replacement services such as child care or housekeeping

· $5,000 for death benefits

Most companies will increase the percentages they will cover for lost wages and medical expenses and also the limits for additional premium. Your agent can review these options. PIP covers you and may cover other people in your car depending on if they live in your household, have a PIP policy of their own and are driving your car. Outside of Florida, but within the United States or in Canada, the restrictions on who PIP will cover are far more stringent. See your agent to find out who is covered on your PIP policy..

Property Damage Liability (PDL) pays certain damage up to policy limits that anyone covered on your policy causes to another person’s property by an automobile. The term property can include a vehicle, fence, telephone pole, building or an animal. PDL may apply if you are driving another vehicle and may cover someone using your vehicle depending on your policy.

PIP and PDL deductibles may not be required. Generally the higher the deductible the lower your premium, however, your insurer will only pay the amount of your claim that exceeds the deductible, you will be responsible for the remainder. Calculating PIP benefits and deductibles can vary by example so consult your insurance agent if you have a claim or a question.

*Florida law only requires that you purchase PIP and PDL, but there are other coverages that you should strongly consider purchasing to provide solid protection. These coverages include bodily injury, collision, comprehensive, uninsured motorist, medical payments, towing, rental reimbursement and accidental death and dismemberment.

Bodily injury will pay for death or injury to others, up to policy limits, when you are legally liable and provide legal representation if you are sued. Collision pays to repair or replace your vehicle if you are in an accident. Comprehensive covers losses from causes other than collision such as fire, flood, theft, or vandalism. Uninsured or underinsured motorist pays for injuries to you and other occupants of your vehicle if they are caused by an uninsured or under insured motorist. Towing and rental reimbursement are available, but they may be covered if you are a member of a motor club.

There are many factors used when calculating your premium and they can have an effect on how much you will pay. Some of these may be significant such as a history of accident or traffic violations. Other factors include age, gender, vehicle usage, policy coverages and the territory in which you live. Your agent can give you details on how these affect your premium.

*Failure to pay for accident damage, a conviction for traffic violation or other circumstances may require you to carry additional coverage. The Florida Department of Highway Safety and Motor Vehicles can provide information on these requirements.

Finding an insurance agent who is a member of the Florida Association of Insurance and Financial Advisors is very easy. Click here to find one in your area:http://www.naifa.org/consumer/advisor.cfm