Your Yearly Auto Insurance Review
Given its importance to your financial health, a quick auto insurance review might be helpful. It's a complex subject. Understanding a few insurance terms could "save your bacon."
PIP is personal injury protection. After a wreck and regardless of who is at fault, it pays part of your medical expenses and wage loss. The phrase "medical payments coverage" speaks for itself and the way it covers your medical expenses, usually up to $5,000.
Property damage liability coverage takes care of repairs to the other person's car if you are at fault. PIP and property damage liability coverages are required in Florida and are needed to get a license tag.
If an insurance agent tells you that he's selling you "full coverage," beware. That means nothing in the law, and typically only PIP and property damage liability are being described. Alone, they are terribly inadequate to protect you in most accidents.
Bodily injury liability coverage is available to pay for injuries to people you negligently hurt. It protects your assets from suit. I suggest a minimum of fifty thousand dollars of coverage. The more you buy, the cheaper it gets per thousand.
Ordinarily, you will also buy collision coverage to repair or replace your car if the at-fault driver doesn't have insurance, and you may get comprehensive coverage to take care of incidental damage like damage from hail.
Don't overlook uninsured (UM) and underinsured motorist coverage. They are incredibly important since so many other drivers on the road drive uninsured or underinsured for damages they might cause to you. Unless you reject uninsured motorist coverage in writing when you buy your bodily injury liability coverage, you will automatically have it on your policy in the same amount as the BI coverage. If you have more than one vehicle on your policy, select stacking coverage. It's cheap, and it multiplies your UM coverage times the number of vehicles on your policy.
I hope this will help you.