They say great expectations can lead to bitter disappoints. Given that there are 200 million cars on the road, car insurance is the first smartest way to protect yourself in an unfortunate event and the second bright thing to do is to be fluent in what your policy will cover. The best way to counteract any “surprises” is to be knowledgeable before signing any dotted lines. In Florida, auto insurance covers quite a bit, but the policyholder needs to be aware of what is protected. Additional protections can be included for small fees, if needed. Keep in mind that 30% of motorists on the road are uninsured. Be aware of what your car insurance handles at the start rather than trying to figure it out after an accident or a totaled vehicle. Read all sections to prevent any misunderstandings that can cost you money in the end. Knowledge is power.
Coverage expectations include:
- Bodily injury liability
- Property damage liability
- Collision coverage
In essence, bodily injury liability spans injury and death claims and the event of maiming or death. One only has to pay for health insurance to know that medical bills can escalate quickly, especially in the event of long-term care. Passengers or driver in your car or the struck vehicle needs to be covered. Bodily injury coverage allows for you not to be financially responsible for grave injuries. Even minor accidents can lead to a lawsuit by the other party to cover their health expenses. Bills can add up so pay your insurance every month to prevent bankruptcy from medical bills or subsequent lawsuits.
Car accidents can happen anywhere where there is a road. Because of this, some policyholders may not know that most car accidents happen within twelve miles of their home. Given that most Americans live in the suburbs or a city center, property damage can be incurred from fences to walls. Trees can be struck and can cause major damage to any objects in their path. Your car insurance covers property damaged when your car careens off the road or strikes a solid object.
Some drivers try to hit and run, particularly if they have a suspended license. Collision coverage covers damage to your car up to its book value. Your car depreciates after you driving it off the car lot and car that cost $20,000 may only have a book value of $12,000 after a few years. Insurance copies will not cover your car for what you paid for it, rather what its worth would be at the time of impact. Collision cover also carries a deductible, the amount per claim required before the insurance steps into the situation. A low deductible equals a higher premium and vice versa.
Always be aware of what your policy offers in the event of an accident. Bodily injury liability tends to injury and death claims that could result in legal costs. Property damage liability deal with the impact your vehicle may cover in the event of an accident. Collision coverage accounts for damage to your car up to its book value. Be smart, read over your policy before it is necessary, especially before paying for any coverage.