Understanding your auto insurance coverage.



Auto insurance can seem confusing. But once you understand the different types of coverages that make up your policy, it’s not hard at all.

Your auto insurance is really made up of 10 distinct parts that divide into two categories: Compulsory (required) Insurance and Optional Insurance. The first two parts are Compulsory coverage's required by Florida law. The other eight are Optional; however, they provide additional insurance protection. A brief explanation of each coverage part is listed below.





Compulsory (required) insurance:

 

Personal injury protection "PIP"

This is commonly known as “No-Fault” and provides benefits including medical expenses, work loss, replacement services & death, covers you regardless of fault (i.e. whether or not you cause the crash) up to the limits of your policy. Your PIP will also cover your child, members of your household, certain passengers who lack PIP Insurance as long as they do not own a vehicle. 

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Property damage liability

This coverage pays for damages to someone else whose auto or other property is damaged in an accident if you, a household member or someone using your auto with your consent is legally responsible.





Optional insurance:

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Bodily injury liability

Bodily Injury Liability coverage pays for serious and permanent injury or death to others when you cause a crash involving your automobile.  and it covers you or members of your family who live with you, even if they were driving someone else's vehicle. It may also cover others who drive your automobile with your permission. Your insurance company will pay for injuries up to the limits of your policy and provide legal representation for you if you get sued.

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Additional Property damage liability
This coverage pays for damages to someone else whose auto or other property is damaged in an accident if you, a household member or someone using your auto with your consent is legally responsible.



Uninsured Motorist "UM" 

This coverage pays for damages for bodily injury or death as the result of certain accidents caused by someone who does not have insurance or does not have enough insurance or a case of a hit and run. and it covers you or members of your family in the household in the vehicle, in any other vehicle and as pedestrians. Other persons are covered while occupying the vehicle. 

 

Medical payments

This coverage pays for reasonable expenses for necessary medical and funeral services to yourself and your passengers incurred as the result of an auto accident. It also covers expenses if you or a household member is struck by a vehicle or if a passenger in another vehicle at the time of an accident. Payments are without regard to fault or legal liability.

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Collision

This coverage pays for any direct and accidental damage to your auto caused by a collision regardless of fault. It also covers damage to other private passenger autos being used by you or a household member with the permission of the owner.

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Comprehensive

This is not a substitute for Collision. This will pay for direct and accidental damage to or loss of your auto in non-collision situations including vandalism, theft, fire, wind, hail, flood, hitting an animal and others.

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Substitute transportation

This coverage reimburses you, up to the limits shown on the coverage selection page, in certain situations if your auto was in a collision and is being repaired or replaced.

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Towing and labor

This coverage pays for auto towing and labor due to a breakdown even if there isn’t an accident. Coverage is up to the limit shown on the declaration page.

​Understanding your auto insurance coverage.

Motorcycle insurance works very similar to auto insurance, please refer to "Understanding your auto insurance coverage" for more details.
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NOTE: This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Some coverage may be subject to individual insureds meeting underwriting qualifications and to availability within a state. For further information contact a Simplified Insurance Agency Associate.