Automobile policies also provide for both property and liability damages. Autos are the most volatile form of risk for an insured and present the largest liability.
Personal Injury Protection (PIP) – The state of Florida is a No-Fault state requiring every driver to carry $10,000 of coverage. PIP does not pertain to property damage, merely liability. There are continuous changes and restrictions to the PIP laws due to the high capacity of fraud.
Liability – pays out to others on the behalf of the insured in the event of an accident in which they are deemed legally liable. This coverage is provided for both Bodily Injury and Property Damage and can be displayed as split limits or as a combined single limit. The bodily injury portion, if split, has a limit of per person and per accident. Usually displayed as 10(per person)/20(per accident)/10(property damage). A combined single limit does not enforce maximums per category, but merely offers one sum of which can be applied to any various combination of bodily injury or property damage as needed.
Medical Payments – again, medical payments are made regardless of fault or legal liability; however, these are paid out to the insured to supplement PIP and Uninsured Motorists (if applicable).
Uninsured/Underinsured Motorist (UM) – pays out to the insured in the event of an accident in which the other at-fault party has no insurance or limits (while legal to operate a vehicle) below what is necessary to compensate for the insured’s injuries. Forms are Stacked (added together per vehicle) and Non-Stacked (limits only applicable for coverage on particular accident vehicle).
Comprehensive – property damage other than collision; meaning, damage due to a covered peril such as: flood, windstorm, water, falling objects, striking an animal, glass breakage, etc. In the state of Florida, FRONT windshield replacement is free (deductible is waived) if comprehensive coverage is in-force on the vehicle.
Collision – insured colliding with another vehicle/object.
Rental Reimbursement – Applies for transportation expenses for a rental vehicle in the event of an accident in which the insured’s vehicle is unusable or while being repaired. Usually, a per day/maximum limit is applied.
Towing/Labor – Road trouble services for disabled vehicles: towing, tire changes, battery jumps, etc.
For a free evaluation please contact Elizabeth Funcheon at 877/359-1303 or ElizabethF@isolutions.com