MOTORIST INSURANCE POLICIES IN A NUT SHELL

MIAMI CAR ACCIDENT LAWYER SHARES VALUABLE INSIGHT ON MOTOR VEHICLE INSURANCE POLICIES IN FLORIDA

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Nobody gets behind the wheel of their car or truck expecting to get into an accident. Unfortunately, motor vehicle accidents in Miami are very common, and to protect your financial and physical well-being, insurance coverage helps to provide you, passengers, and other drivers with protection.

In Florida, carrying basic insurance is mandatory for registered motor vehicle owners. According to the Florida Bar, basic insurance consists of Personal Injury Protection (PIP) and Property Damage Insurance (PD). PIP insurance coverage safeguards the insured party (driver and/or household relatives on the policy) for up to $10,000 minus any deductibles regardless of fault. In the event of an accident that involves personal injury, the healthcare facility or doctor will be responsible for billing the insurance provider once the policy holder signs an assignment of benefits. PD insurance covers damage to another individual’s property as a result of an accident regardless of fault. The Perazzo Law Firm reminds PIP and PD insurance policy holders that these basic policies usually fall short of covering the full extent of injuries or losses. That is why, our car accident attorneys urge motorists to carry additional policies if economically viable. The insurance policies listed below (in order of importance) are highly recommended:

  1. Uninsured Motorist Coverage (UM) – Helps protect against uninsured drivers and is of great value given that the cost of purchasing UM is relatively low. UM also covers you and passengers in the event of a hit & run accident which results in bodily injury. UM will also cover your medical expenses or any lost wages that surpass your PIP coverage.
  2. Bodily Injury Coverage – Covers your assets in the event of serious injury or wrongful death to passengers or other third-party victims. Mandatory for three years if convicted of drunk driving, in which case you must carry $100,000 in coverage for each person on the policy and $300,000 for each registered motor vehicle. BI covers personal injury brought onto others by you, your household members, or those that operate the insured vehicle under the policy holder’s consent. In the event the insured motorist is sued, the insurance provider will cover the costs of legal fees.
  3. Umbrella Insurance – As implied by its name, Umbrella insurance adds a layer of protection to your already existing policy. Recommended for those with over $1 million in assets. It is highly recommended in the event the policy holder is sued for property damage, bodily injury, or wrongful death stemming from fault in a motor vehicle accident. An umbrella insurance policy is very useful when legal woes start pouring down on the policy holder’s assets.
  4. Collision Insurance – Helps cover the cost of repairs to your vehicle after a crash regardless of fault. This insurance coverage is highly recommended for those that depend on motor vehicles for business purposes because collision insurance helps speed up the process of getting your vehicle back on the road without having to wait for the insurance providers to settle the claim. Collision only covers damages to your vehicle as a result of a crash and does not cover injuries or losses to your or third parties.
  5. Guaranteed Auto Protection Insurance (GAP) – Though not mandatory, GAP insurance policies are recommended for covering the monetary difference between the cars market value and the amount owed to financial institutions or lenders. Thus, if you drive a new car off the lot, GAP could come in handy to cover the cost of its immediate depreciation.
  6. Comprehensive – Covers a vast range of incidents that can cause damage to your vehicle not directly related to an accident. Comprehensive insurance will cover your vehicle in the event of vandalism, theft, flooding, or other damages not linked to driving. Individuals that have leased or financed a motor-vehicle may be required by law to carry comprehensive insurance coverage. However, vehicle owners are free to choose the insurance provider they consider best for them.
  7. Car Rental – Not mandatory but useful if you rent a car. It helps cover the damages incurred on a rented vehicle in the event of an accident that results in damage to the vehicle. Depending on the policy chosen, car rental insurance will pay for the cost of renting a car if you are found at fault for an accident and your car has suffered damage which requires repair.
  8. MedPay – A supplement to basic coverage that covers hospital bills for treatment that exceeds PIP coverage. MedPay will cover the medical expenses pertaining to the insured driver or passengers regardless of fault. MedPay will also cover the policy holder regardless of whether the injuries were sustained while driving or walking.

For a detailed description of each type of insurance policy and how it works, visit the Perazzo Law Firm SITE or CALL (786) LAWS-411.

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