1-800-526-4711
« In Your Community. On Your Side »

HOW DOES MY INSURANCE COVERAGE WORK?

Author: Webmaster / August 7, 2016 / Categories:

For many people, knowing how their insurance works can be a tricky task, and being involved in an automobile accident can only worsen the confusion. To help gain some insurance clarity before possibly being involved in an accident, here is some information regarding the basic automobile insurance policies and how they work:

Personal Injury Protection

Personal Injury Protection (PIP) coverage is a type of automobile insurance that is required by Florida law for all vehicle owners (at least $10,000 coverage). If you are involved in an automobile accident, your PIP insurance will cover 80% of your medical bills and 60% of any lost wages you acquire up to the amount stated in your policy limits.

For example, if you purchase a policy with a $10,000.00 limit, 80% of your medical bills will be paid until PIP pays out a total of $10,000.00. After the payout exceeds $10,000.00, your PIP insurance is said to be exhausted. When this happens, your remaining bills will have to be covered through another source such as your health insurance or through making a claim on the at fault party’s bodily injury coverage or through your own uninsured motorist coverage.

Property Damage Liability

This insurance is also required by Florida law (at least $10,000 coverage) to obtain a tag for a vehicle. It covers any property that was damaged as a result of an automobile accident, such as damage to vehicles, mailboxes and houses.

If you are involved in an accident where someone else hit you (and was at-fault) the amount of benefits you would receive from this coverage depends on how much the at-fault party purchased in their policy.

Bodily Injury Liability

This type of liability insurance is not required by Florida law to obtain a vehicle tag. However, it can be a crucial element in providing extra benefits to the injured party as a result of an automobile accident. If you are involved in an automobile accident where someone else hit you (and was at-fault) the amount of benefits you would receive from this coverage depends again on how much the at-fault party purchased in their policy.

Uninsured Motorist Coverage

This is a type of insurance coverage that each vehicle owner can purchase separately for their policy. This insurance comes into play if you are involved in an automobile accident where another person hit you and does not have bodily injury liability insurance.

If this is the case, you would first be covered under your PIP insurance, any health insurance you maintain and then your personal Uninsured Motorist coverage will cover any remaining medical costs you may have as a result of the accident.

If the victim of the accident has anyone in their household that is a RESIDENT relative, they may be able to use that resident relative’s UM coverage.

Underinsured Motorist Coverage

This insurance coverage is also a separately purchased policy that comes into play if you are involved in an automobile accident where another person hit you and does not have enough bodily injury liability insurance to cover all of your medical bills.

If this is the case, your personal Underinsured Motorist coverage will help provide you more payment of medical costs if the at-fault party’s liability insurance is not enough to cover them after your PIP has already paid out the full limits you purchased.

If the victim of the accident has anyone in their household that is a RESIDENT relative, they may be able to use that resident relative’s UM coverage.

Stacking Uninsured/Underinsured Motorist Coverage

Some individuals purchase an uninsured/underinsured motorist insurance policy that is “stacking”. This simply means that the coverage they purchase will apply to however many vehicles they include on their policy. For example, if you purchase $10,000/20,000 UM that is stacking and have 2 cars listed on your policy, you will have $20,000/40,000 in total UM coverage.

The information given above does not reflect professional legal and/or insurance advice. If you have specific questions regarding your insurance policy, please contact your insurance agent.

Number of views ()/Comments (0)

Tags:

Free Case Review










 agreeAgree To Terms:

Subscribe to Newsletter:*

Upcoming Events

  1. Tropical Tattoo Old School Chopper Show

    October 13 @ 12:00 pm - 4:00 pm