Auto Insurance: Do You Understand Your Coverages?

If you don’t understand your coverages, that’s okay. They are like a different language and that’s one reason we’re here for you as your agent, to help you understand and to make sure you are properly covered when you need it.

Unfortunately, many are under the impression that the only reason they carry auto insurance is because the State of Florida “makes them” carry $10,000 Personal Injury Protection and $10,000 Property Damage. Remember the best reason for carrying auto insurance is to protect you, your families, and your possessions whether you get hit or hit someone else. Failure to carry adequate coverage can result in lawsuits against you and your personal assets, massive medical bills, and not being able to replace your wrecked car!

Following is a brief explanation of each coverage with a suggestion of recommended coverages:

  • Bodily Injury- When you injure someone else’s body (you’re considered at fault) and you are responsible for that person’s medical expenses. Recommendation; carry at least 100/300 which means $100k per person in other car/$300k maximum payout.
  • Property Damage- When you damage someone else’s property (usually their car) and you are responsible for repairing/replacing their car. Recommendation; carry at least $100k. If you hit a Mercedes or Lexus, or hit more than 1 car, you need a lot of coverage.
  • Personal Injury Protection- This is the State required $10k coverage designed to reimburse you for the first $10k in medical expenses no matter who is at fault. Recommendation: don’t take a deductible because in a wreck, especially if caused by someone else, you’ll pay that out of your pocket.
  • Uninsured/Underinsured Motorists- When someone hits and injuries you and your family, but they either have no insurance or not enough to cover your expenses, so you carry this to cover your own medical expenses. In Florida, approximately 1 out of every 4 drivers is either uninsured or underinsured. Recommendation: match your uninsured coverage to your bodily injury, 100/300 if possible.
  • Comprehensive- This covers the physical damage to your vehicle for about anything other than a collision (fire, theft, wind, etc., windshield). Recommendation: typical deductibles are $500, if you don’t have this coverage, no windshield coverage.
  • Collision- Covers an actual collision with another car, wall, ditch,etc. Recommendation:  $500 deductible is typical. Even older cars need coverage unless you’re willing to absorb the cost of getting nothing if your car is wrecked.

Whether you want an Auto Insurance Quote, want to raise your coverages, or have them explained, call the helpful staff at Moody, D’Avirro, and Associates.

Scott Love and Michael D’Avirro

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