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Video: What are the different parts of an auto insurance policy?

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Personal Injury Video Law Tip

“There are several lines of coverage in an auto insurance policy that protect different things. You have insurance coverage for property damage, you have insurance that protects you if you harm someone else in an accident, and you can also carry insurance coverage when an uninsured or under-insured driver hits you that will protect you as well.” – Dena Sisk Foman, Florida Personal Injury Lawyer at McLaughlin & Stern LLP in West Palm Beach


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Dena Sisk Foman circle photo avatar personal injury lawyer West Palm Beach

She Said Dena Sisk Foman, Personal Injury Lawyer

Topic What are the different parts of an auto insurance Policy?

In Florida, all drivers are required to carry personal injury protection insurance which provides a minimum of $10,000 in insurance coverage to an injured party no matter who is at fault. Parties can opt to have more coverage if they would like and can select deductible limits. This line of coverage will come into play when a party is injured in a car accident and must pay the first $10,000 of medical bills subject to the Florida statute governing no fault insurance.

Bodily injury coverage is the line of coverage that provides coverage should a motorist cause an accident and injure a third party. Coverage limits depend on the driver’s selection of coverage. The policies run from $10,000 in coverage all the way into the millions of dollars in coverage. The higher the limits of coverage, the greater your chance of having personal liability or out-of-pocket monies owed if you injure someone in an accident.

Uninsured or under-insured motorist coverage is the line of coverage that is with your own insurance company. If a party injures you and they either do not have coverage or do not carry enough coverage, this is the line of coverage that would come into play to reimburse you for your injuries. This would mean that you could possibly be seeking reimbursement from a third party and your insurance company for your injuries. There are 2 kinds of uninsured and under-insured coverage. One is called stacking. Stacking insurance doubles your line of coverage for each vehicle on your policy. For instance, there are two insured vehicles and you have a $100,000 uninsured/under-insured limit. The coverage would be $200,00 because you have 2 vehicles. Non-stacking means exactly the opposite and no matter how many vehicles are insured, your coverage would be $100,000.

Property damage is another line that provides the deductible amount and coverage amount for property damage. Typically this is for the damage to vehicles but could also cover things like light posts or railways if a car damages those things when in an accident.

Some parties take out medical payments coverage which provides coverage that supplements no fault insurance. No fault pays 80% of allowable expenses and medical payment coverage would pick up the remaining 20%. Once the no fault insurance is exhausted, it would cover 100% for the remainder of the coverage line. – Dena Sisk Foman

Bill Abel circle photo avatar personal injury lawyer West Palm Beach

He Said Bill Abel, Personal Injury Lawyer

Topic What are the different parts of an auto insurance policy?

When I ask potential clients what are their limits of auto insurance, they typically answer that they have “full coverage.” Sadly, under Florida law, “full coverage” doesn’t amount to much insurance at all. Florida law requires that an owner of an automobile carry PIP insurance and property damage insurance. PIP insurance pays up to $10,000.00 in medical benefits and/or lost wages regardless of fault if the injured party seeks medical treatment within 14 days of the accident.

Property damage insurance will pay if a vehicle is damaged by an accident you caused. Under Florida law, no one is required to carry bodily injury insurance. This means if someone injures you in an accident, they do not have to have insurance to pay for your injuries. Also, no one is required to carry uninsured/under-insured motorist insurance, which provides insurance for you if the person who injures you does not carry any bodily injury insurance.

Uninsured/under-insured motorist insurance is the most important type of auto insurance to own because it protects you against someone injuring you who does not have insurance. UM insurance, as it is known, can only be purchased in an amount equal to your bodily injury insurance limits but it can also be waived altogether. In other words, if you do not want to purchase UM insurance when you purchase bodily injury insurance, the insurance company must have you sign a waiver. It is important to understand the type of auto insurance you have since learning about it after an accident will be too late. – Bill Abel

Personal injury law video number 100047:
Video: What are the different parts of an auto insurance policy?

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