Insurance 1-2-3: The Basics of Orlando Auto Insurance

liability coverage

Insurance 1-2-3: The Basics of Orlando Auto Insurance

When it comes down to it, Orlando auto insurance is essentially just a contract between the providers and a policy holder which ensures that financial protection is provided to the policy holder in the event of an incident involving a specific vehicle. It is important to understand that auto insurance is designed to cover a specific vehicle and its drivers; however the policy is taken out for a specific vehicle not the drivers themselves. This means that you are permitted to add additional drivers onto an auto policy if they are regular users of that vehicle, and the allotted coverage will be extended to that motorist. Coverage is also extended to any legally eligible driver, such as friends or family members, who may not be named on the policy for the time they operate the vehicle with the policy holder’s permission. Most auto policies are secured every six months to a year at which point they are reevaluated based on the motorist’s driving performance, location and other additional factors to adjust to changing market and client demands.

Like all insurance policies, premiums are based on the amount and type of coverage you wish to attain to protect your property. Most Orlando auto insurance policies can be comprised of six typical coverage inclusions, however there are supplemental various inclusions which can be written into a policy to provide extra security.

Standard Vehicle Coverage Inclusions

Property Damage Liability coverage is designed to help consumers bear the financial responsibility of paying for damages caused by you, your family members or other persons driving the insured vehicle with your permission. Typical property damage includes impairment and destruction caused to another vehicle, but this type of security also includes damage inflicted upon public property such as lamp posts, telephone poles, fences, buildings or other structures.

 Collision Coverage is an inclusion that policy holders often have the most control over. Collision, often paired with comprehensive coverage, is designed to benefit the owner a vehicle. This coverage is generally sold with a deductible of between $250 and $1,000, which the policy holder will contribute if a vehicle needs repairs resulting from an accident. Think of a deductible as the out-of-pocket expense you as the policy holder will pay to restore your vehicle. A high deductible will result in a lower policy premium because you are electing to assume more financial responsibility when the time comes to make a claim. Regardless of who is determined to be at fault for an accident, collision coverage will reimburse the claimant for the costs of repairing the vehicle, sans the amount of the deductible. In the event that you, the claimant, are not at fault for an accident, your insurance provider will likely try to attain reimbursement from the party determined to be at fault. If successful, you will likely be compensated the full amount for repairs of the determined market value of the vehicle should it be deemed a total loss.

While collision coverage is designed specifically for vehicle crashes, Comprehensive Coverage is offered by most Florida auto insurance providers to help policy holders cover the cost of damages that are not the result of an auto accident. Comprehensive coverage, as its name would suggest, is designed to reimburse policy holders for destruction cause by a host of “other” factors for example, natural events such as fire, flood, earthquake, hail and other natural events. This coverage is commonly used to help consumers pay for the replacement or repair of windows and windshields after damage from falling objects and projectiles. Financial consequences of vandalism, riots, and contact with animals, such as deer, can also be recovered through comprehensive coverage.

As liability coverage, Bodily Injury Liability is a required coverage in most states, typically with minimum mandatory compensation limits. This coverage is designed to help the policy holder and others listed on the policy pay for injuries, including fatalities, inflicted by the insured vehicle onto other drivers, passengers or individuals involved in an accident. The policy holders and any family members listed on the policy are also covered when operating another vehicle if permission is granted by the owner.

Personal Injury Protection (PIP): Also known as Medical Liability coverage within the insurance industry and Florida No Fault Insurance to Orlando drivers, PIP coverage can help the policy holder pay for their own injuries or injuries sustained by their passengers of the insured vehicle. Depending on the limits and policy stipulations PIP can cover medical payments, lost wages for injury or disfigurement and the “cost of replacing services normally performed by someone injured in an auto accident.” In some cases funeral costs can also be rewarded by this coverage. The state of Florida requires that all state licensed drivers hold a minimum of $10,000 in Personal Injury Protection coverage, to ensure that all parties involved in an accident receive the proper medical care regardless of fault.

Uninsured/ Underinsured Motorist coverage comes into play when an at-fault driver has insufficient on nonexistent insurance to pay for the affected party’s total loss or in a hit-and-run occurrence. Hit-and-run incidents remain a huge problem across all regions of Florida, according to Florida Highway Patrol statistics there were 69,994 of these cases in 2012 alone and similar reports from 2013. Uninsured motorist coverage can not only help cover injuries sustained from an underinsured motorist, but will also help supplement the costs of repairs needed from the collision. This coverage will also protect injuries sustained from a crash where the policy holder is a pedestrian.

Are there car insurance requirements in Orlando?

Most states require all drivers to hold some amount of property damage and personal injury coverage. As previously mentioned, the state of Florida requires drivers to carry a minimum coverage of $10,000 in PIP, as well as $10,000 in property damage liability coverage in order to legally register a vehicle with the state. While these are the basic coverage necessities, acquiring the right additional coverage can be to the benefit of any auto owner. Those financing a car are often subject to additional requirements dictated by the lender to protect their investment as well.

According to state law, the minimum required insurance must be issued through a licensed Florida agent who operates in conjunction with an insurance company which is licensed to sell insurance in Florida as well. While large insurance carriers are often licensed across many states, working with a local agency can often provide a nuanced level of expertise to help obtain the comprehensive auto insurance coverage that Orlando residents need. Domestic agencies are more accustomed to dealing with the specific insurance needs of Floridians and their assets. If you would like more information about working with local agents to better understand what Orlando auto insurance policy is right for you, give us a call at (407) 859-3691.