Auto Insurance

Bodily Injury Liability
This coverage pays for death or serious injury to others when you are legally liable for an accident involving your automobile. Your insurance company will pay for injuries up to the limits of your policy and provide legal representation if you get sued. This coverage may be extended to others who drive your vehicle with your permission.
PDL: Property Damage Liability
PDL pays for damage (up to the limit of the policy) that you or anyone covered under your policy cause to another person’s property through the use of a covered automobile. It only covers damage for which you or anyone insured under your policy are legally liable. The damage may involve a parked, running or rolling automobile. The term “property” is not limited to another vehicle, and may include a fence, telephone pole, or building. The terms and conditions of your policy determine whether PDL coverage applies to anyone using your vehicle.
PIP: Personal Injury Protection (also called no-fault insurance)
If you are injured by an automobile, PIP covers you up to the limits of the policy, regardless of fault.
PIP coverage includes:

• 80 percent of “medically necessary” expenses,
• 60 percent of lost wages,
• 100 percent of replacement services such as child care, housekeeping or yard work, and
• $5,000 for death benefits.

For a higher premium, you may (in some cases):

• amend your PIP to increase medical expenses to 100 percent and lost wages to 80 percent; or
• increase your minimum limits from $10,000 to $20,000 or more.

Optional Limitations of PIP
When you buy a policy, you have the option to select a deductible and/or exclude disability benefits (loss of wages). A premium reduction will result from the selection of one or both of these options. These changes can apply to you alone or to you and your dependent relatives.

Although your premium will be less if you choose to have a deductible on your PIP coverage, it may not be the best option. That is because you would have to pay the deductible before the insurance company would pay the remainder of the approved claim according to the policy provisions. Your personal health insurance will only pay after the coverage on your automobile policy is exhausted. This means that you could be left with a high out-of-pocket expense if you carry a deductible on your PIP coverage.
An exclusion of disability benefits means that in the event of an accident, lost wages will not be payable. It is advisable that if you or your dependent relatives are employed, you should not elect this exclusion.

Medical Payments
This coverage pays for medical expenses for bodily injury up to the limit of your policy. It covers your medical expenses, plus those of your family members or passengers, regardless of fault. It applies whether you are in your automobile or someone else’s, or if you are hit by an automobile while walking or bicycling. Since PIP covers only 80 percent of medical expenses, Medical payments coverage could cover the remaining 20 percent, and possibly the PIP deductible, depending on the policy provisions. Medical payments will also cover the amount in excess of the PIP limit, up to the limit of the medical payments benefits.

Towing (Disablement)
You may add towing and road service to your auto insurance. This coverage is for the towing of a disabled vehicle. If your vehicle is involved in an accident, this coverage is not necessary. Instead, the company will add the cost of any necessary towing to the total cost of the claim.

Rental Reimbursement
If you are involved in an accident, you may need to rent another vehicle while yours is being repaired. Rental reimbursement covers these expenses if the accident is covered under your policy.
If another driver causes an accident, the at-fault party’s liability coverage may reimburse you for renting a vehicle. However, the other party’s insurance company will have a maximum daily limit.
Note that this coverage does not guarantee that a rental car company will provide you with a rental car. The rental car company still has the right to require a major credit card before they will rent a vehicle to you. They may also have a minimum age limit. Discuss any problems you may encounter with your adjuster.

Uninsured/Underinsured Motorist (UM)
This coverage pays for bodily injuries to you, your family members and any other person occupying your covered automobile, should the injuries be caused by the negligence of an uninsured or underinsured motorist.
The following are examples in which UM coverage may apply:

• if the at-fault party has no liability insurance
• if the at-fault party has liability coverage inadequate to pay for the injuries incurred or
• if injuries result from a hit-and-run vehicle.

UM pays for medical expenses and lost wages (after your PIP coverage is exhausted) that you and your passengers may incur. This coverage also includes payment for pain and suffering if you have a permanent injury or death, up to the limit of the policy. Uninsured motorist insurance comes in two options: stacked and unstacked. Companies must offer the stacked option, but may or may not offer an unstacked option.
Stacked vs. Unstacked
Stacked coverage means that you may combine the coverage limits for each automobile insured under your policy. For example, you may insure three autos and obtain stacked coverage with limits of $10,000 per person and $20,000 per accident for each auto (known as 10/20 limits). Your stacked, or combined, coverage will total $30,000 per person and $60,000 per accident. If the coverage was unstacked, then the limit of coverage for each vehicle would be $10,000 per person and $20,000 per accident. Insurance companies may offer unstacked coverage at a reduced cost, since they will only pay the maximum amount allowed for one insured automobile.

Comprehensive
This coverage pays for losses from incidents other than a collision, such as fire, theft, windstorm, vandalism or flood. It also covers damages caused by falling objects or hitting an animal.
You can choose to carry a deductible on this coverage, usually from $100 to $1,000. However, your insurance company will not assess your deductible to replace your front windshield. Florida law requires this waiver in order to encourage drivers to replace cracked or broken windshields immediately to avoid a major driving hazard.

Collision
This coverage pays for repair or replacement of your vehicle if it collides with another vehicle or object, or flips, regardless of who causes the accident. It does not cover injuries to people or damage to property other than your covered automobile. You will have the option of a deductible with this coverage. Typical deductible amounts may be between $100 to $1,000.