Insurance Types | Tipos de seguros
Many clients come into our office and say
“My insurance agent said I have ‘full coverage’ so why I am I not covered?”
Many do not realize what kind of coverage they have or what is available. Unfortunately, in today’s age of fly-by-night insurance companies, it has become necessary for insurance consumers to be somewhat knowledgeable about the type of insurance they need. The following outline will briefly explain the types of insurance and what they cover.
PIP · PD · BI · UM · Med Pay · Other Types
Personal Injury Protection (PIP) (aka No-Fault)
Florida is a “No-Fault” insurance state, which means that it does not matter whose fault an accident is since you will go through your own insurance for payment of certain basic medical expenses. PIP is required by every owner of a motor vehicle in Florida. Almost all policies have a benefit limit of $10,000, but some companies do have higher limits. PIP pays 80% of all reasonable and necessary medical expenses related to a automobile accident. PIP also pays 60% of gross wage loss caused by an automobile accident. PIP also pays 80% of reasonable mileage or transportation expenses for visits to and from doctor’s offices as well as all expenses reasonably incurred in obtaining services that you might need to properly run your household, such as housekeeping and child care.
NOTE: You can be offered a deductible on your PIP coverage, ranging from $250.00 up to $1,000.00. This reduces your PIP coverage by the amount of the deductible and it means that your insurance company does not have to pay any of your medical bills until your deductible is met. This money comes out of your own pocket, so it is better not to get a deductible at all, this way you are covered by the full 80%.
Property Damage Coverage (PD)
PD is required by every owner of a motor vehicle in Florida. Most policies have a benefit limit of $10,000, but many companies do have higher limits. PD pays for damage that you cause to the property of others due to your driving negligence. It does NOT pay for damages to your own vehicle, regardless if it was caused by others or by yourself. The at-fault driver’s PD pays for the vehicle damages caused in an accident.
Bodily Injury Liability Coverage (BI)
This is an optional coverage that pays for injuries, which you cause as a result of your carelessness in driving your vehicle. The coverage is offered in different amounts. What this means is, if you have, for example, coverage of $10,000 /$20,000, your insurance company will pay up to $10,000 per person and a total of $20,000 for all those injured in a single accident. If you do not have this coverage or a low coverage amount and you cause serious injuries, but you have personal assets that can cover the cost of the injuries, they could forgo the Bodily Injury Liability coverage and go directly after your personal assets.
Uninsured or Underinsured Motorist Coverage (UM)
This motor vehicle optional coverage pays benefits to you if you are injured by a driver or a vehicle, which either has no insurance at all or does not have enough bodily injury liability insurance coverage (discussed earlier) to cover all of your expenses for your injuries. There are different amounts you can get, but you can’t buy more UM coverage than BI coverage, but it is a wise and highly recommended idea to have this coverage. There are too many drivers on the roads today that do not have BI coverage or any insurance at all. Also, under the right circumstances, you can purchase stackable UM policies. Check with your insurance agency regarding this.
Medical Payments (Med-Pay)
This is an optional coverage. But this covers the remaining 20% of your medical bills that are not covered by your PIP coverage. The coverage is offered in different amounts (Example: $1,000.00 to $25,000.00). The additional expense is small compared to the expense when you need it to cover the 20% of your medical bills. I highly recommend that everyone carry this, so there is no out of pocket expenses for your medical treatment.
Some Other Types of Insurance Coverage Available:
Emergency Road Service
Remember to check with your personal insurance agency concerning the different types of coverage and amounts that they offer. Not all insurance companies sell the same type of coverage and the policies offered can change at any time. This information is to answer the many questions asked.
DISCLAIMER: Our office is not licensed to sell or recommend insurance. If you have questions about what types of insurance your insurance company and what premiums they charge, you should contact your insurance agent or insurance representative.