Types of Auto Insurance

Types of Coverage

 

When you purchase an auto insurance policy, you actually buy multiple types of coverage. There are a handful of main car insurance coverage types. Please review the information below before you buy a policy in order to ensure that you have the coverage you need.

 

Bodily Injury Liability

 

This coverage pays for damages other people incur if you or someone you allow to drive your car causes an auto accident.
Examples of damages include medical expenses, rehabilitation, funeral costs, settlement of lawsuits, and legal expenses.

 

Property Damage Liability

 

Property damage pays for harm caused to another person’s property if you or someone you let drive your car causes an auto accident. It usually pays for repair or actual cash value (ACV) of others’ property and your legal expenses.

 

Personal Injury Protection (PIP)

 

PIP coverage pays for medical, rehabilitation, funeral, and childcare expenses as well as for loss of earnings and in-home assistance if you and your passengers are injured in an accident, regardless of who is at fault.

 

Collision

 

Collision coverage pays for repairing your vehicle in a collision or rollover.

 

Comprehensive

 

Comprehensive coverage pays for damage to your vehicle resulting from theft, vandalism, windstorms, fire, hail, etc.

 

Uninsured and Underinsured Motorist Bodily Injury

 

This coverage pays medical, rehabilitation, and funeral expenses, loss of earnings, and other damages if you or your family are involved in a vehicle, bicycle, or pedestrian accident caused by an uninsured or underinsured motorist or a hit-and-run driver.

 

Uninsured Motorist Property Damage

 

Damages caused by an uninsured driver to your automobile are covered under the uninsured or underinsured motorist protection you add to your policy. This optional coverage generally duplicates your collision coverage, but may be a good solution if you have a high deductible on your collision coverage or don’t have collision coverage.

 

Extra liability coverage

You can buy a separate personal umbrella policy to provide extra liability protection if you are sued.

An umbrella policy benefit will start paying when your other policy’s liability limits are exhausted. For example, let’s say you lose control of your car and cause an accident that kills one person, seriously injures four others, and damages seven vehicles and one residence. The liability damages sustained in this accident are likely to exhaust the limits of your auto policy. A personal umbrella policy provides additional liability protection.

 

Your right to be treated fairly

 

An insurance company cannot deny, refuse to renew, limit, or charge more for coverage because of your race, color, religion, or national origin.

A company also cannot deny, refuse to renew, limit, or charge more for coverage because of your age, gender, marital status, domestic partnership status, disability, or partial disability unless the refusal, limitation, or higher rate is “based on sound underwriting or actuarial principles.”

In addition, a company cannot unfairly discriminate between individuals of the same (rate) class and essentially the same hazard (risk) in its rates, policy terms, benefits, or in any other manner unless the refusal, limitation, or higher rate is “based on sound actuarial principles.”

 

Find the best coverage in Florida by calling a licensed City Insurance agent.