Car accidents happen. In fact, in Florida alone there are over 235,000 car crashes a year - on average, nearly 650 every single day. Almost every motor vehicle accident involves property damage, and nearly half result in personal injury.
It is for this reason that Florida requires all drivers to carry insurance. Before they can register a vehicle, owners must show that they are carrying a minimum of $10,000 in personal injury protection coverage and $10,000 in property damage liability coverage. Although it is not legally required, most personal injury attorneys also suggest that drivers carry bodily injury liability coverage.
Why Do I Need Different Types of Insurance?
Each type of insurance you carry covers a different kind of loss.
Personal injury protection insurance, also known as "PIP coverage" or "no-fault insurance," covers the injuries you suffer in an accident, regardless of who was at fault. Your PIP policy will also cover your children, your spouse, members of your household and some passengers in your vehicle who don't have their own insurance coverage. You will be covered under your PIP policy even if you aren't driving your own car - it protects you when you are in someone else's car or when you are injured as a pedestrian or bicyclist. Your PIP policy will also cover your children if they are injured in a school bus accident.
Bodily injury liability insurance is essentially the opposite of PIP coverage. It provides coverage when you cause a crash that results in serious injury or death to others. It will also provide you with legal representation if you get sued.
Property damage liability pays for damages you cause to other people's property in a car accident. It only applies if you are at fault for causing the accident.
If you have questions about whether your coverage meets the legal requirements, you can contact the Florida Department of Highway Safety and Motor Vehicles.
How Much Coverage Do I Need?
It can often be a good idea to purchase more than the minimum coverage, as you can be held personally responsible for damages that exceed your insurance limits. For example, if you don't have bodily liability coverage and you injure someone severely, you could be required to pay for their medical treatment out of your own pocket. Similarly, most cars cost a lot more than $10,000 these days. If you total someone's vehicle, you could be on the hook for a lot of money.
Experts recommend that you purchase insurance for an amount equal to the total value of your assets. A good rule of thumb is to add up the value of your house, car, savings accounts and investments, and then purchase insurance coverage in that amount.
