Car Insurance Basics: Am I Covered?

Shopping for car insurance isn’t fun for anyone. A lot of insurance companies use confusing language that can leave people feeling overwhelmed. On top of that, each state has different insurance requirements, so if you move, you can’t even use the same coverage at your new house. Every ding, bump, and scrape has us scratching our heads and asking: “Am I covered for this?” This quick reference guide gives an overview of common types of insurance to help make the process of shopping for insurance a little easier.

Liability

Liability insurance is pretty much the same whether it’s for a car, home, or your business. Essentially, it covers everything for which you can legally be held responsible. Liability insurance will cover bodily injury and property damage that you cause in a car accident. This is the most common type of insurance requirement for drivers in the United States. They cover damages caused by a car accident including property (cars, buildings, etc.), all injuries caused by the crash (such as bystanders struck by debris), and the injuries of each person injured within the crash itself.

Personal Injury Protection

Personal injury protection (PIP) is a type of liability insurance that provides coverage regardless of who is at fault. PIP can cover medical bills and lost wages for both you and your passengers after injuries caused by a car accident. PIP is different from bodily injury liability insurance in that it provides coverage regardless of who is at fault for the crash. Vehicles registered in Florida must have a minimum of $10,000 in coverage.

Property Damage Liability 

Property Damage Liability (PDL) covers all property damage caused by anyone driving your insured vehicle. Regardless of who is driving your car – you, your grandma, your child, whomever – if someone else’s property is damaged by your vehicle, the PDL provides coverage. Just like PIP, vehicles registered in Florida are required to have a minimum of $10,000 in coverage.

Collision & Comprehensive Coverage

Collision and comprehensive insurance give you the option of adding additional coverage specifically for your vehicle. It’s almost like home insurance, but for a car. This is not usually required by states to own a vehicle, but can benefit you if you’re looking for “full coverage.” Collision insurance covers damages to your car if you get in an accident, back into a pole, or if someone else hits your car with an object or other vehicle. 

Comprehensive insurance covers the value of your car in a variety of circumstances. Some examples include flooding, inclement weather, fire, falling tree limbs, and vandalism. You have some flexibility to determine how much coverage you need and what you want to pay. 

Even if you’re very careful, accidents happen and you can’t be left in the lurch. Remember to stay knowledgeable and do research to find the options that work best for you and your budget. If you need assistance with filing a claim or a complaint due to a car accident or negligence, reach out to attorney Ashley Armstrong by calling or texting 850-977-3229 to schedule a consultation.