What is Your Insurance Quotient? Weston Personal Injury Attorneys Lazarus and Lazarus

Weston Personal Injury Attorneys Lazarus and Lazarus

People often use the acronym IQ but some don’t know it stands for Intelligence Quotient which is a measure of a person’s reasoning ability. An IQ test is supposed to gauge how well someone can use information and logic to answer questions or make predictions.

We’re interested in people’s Insurance Quotient, or their knowledge of different coverages as they pertain to owning and driving a car in Florida. It’s prudent to understand the basic types of insurance so you can have the best coverage, because many people find out after an accident that they don’t have the coverage they thought they had.

The basic types of auto insurance are:

Auto Liability Coverage is mandatory in most states. Drivers are legally required to purchase at least the minimum amount of liability coverage set by state law. Liability coverage has two components: (1) Bodily Injury Liability may help pay for costs related to another person’s injuries if you cause an accident. (2) Property damage liability may help pay for damage you cause to another person’s property while driving.

Uninsured and Underinsured Motorist Coverage may help pay for your medical bills or, in some states, repairs to your vehicle. If you’re hit by an underinsured driver, that means they have car insurance but their liability limits aren’t enough to cover your resulting medical bills. That’s where underinsured motorist coverage may help.

Comprehensive Coverage may help cover damage to your car from things like theft, fire, hail or vandalism. If your car is damaged by a covered peril, comprehensive coverage may help pay to repair or replace your vehicle (up to the vehicle’s actual cash value). This coverage has a deductible which is the amount you’ll pay out of pocket before your insurer reimburses you for a covered claim. If you have a car loan your lender will likely require this coverage.

Collision Coverage If you’re involved in an accident with another vehicle, or if you hit an object such as a fence, collision coverage may help pay to repair or replace your car (up to its actual cash value and minus your deductible). Collision coverage is typically optional. It may be required by your vehicle’s leaseholder or lender.

Personal injury protection (PIP), also known as “no-fault insurance,” is a component of an automobile insurance plan that covers the healthcare expenses associated with a car accident. PIP covers medical expenses for both injured policyholders and passengers, even if some don’t have health insurance.

Medical Payments Coverage is similar to PIP but is often more extensive and covers higher dollar amounts for serious injuries. It can also cover the owner of the policy if they are involved in an accident while in someone else’s vehicle.

The State of Florida only requires drivers carry $10,000 for personal injury protection (PIP) $10,000 for property damage liability (PDL) and every driver should consult with their own insurance company about the coverage that is best for them. We are not insurance agents and we only recommend that people educate themselves about their rights and responsibilities regarding insurance.

If you are involved in any accident, we’re here to answer your questions. Call us 7 days a week at 954-356-0006 for a free consultation.

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