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Beginner’s Guide To Auto Insurance

May 7, 2011 by  
Filed under Finance

Everything starts from nothing… well yeah, I thin so. It’s just that someone or something made some actions about it, that’s why something had happened to that nothing. Those actions primarily start from the basic. Even in the dictionary, the word “basic’ comes before “complex”. But logically, everybody must learn first the fundamentals before the complexity of a thing. Like in the auto insurance. Here is the primary thing you should know to get best insurance would suit your lifestyle.

Many people think that they only need auto insurance so they can get their registration and tag and then be able to drive their car. It is something that they need because their license will be suspended if they don’t get it. Some people even think it’s just a bother to them because they don’t get into accident or that they are good drivers.

Oftentimes people will call to the insurance companies and will ask for the cheapest insurance policy or the one that is only required. They only become aware of what coverage they have when they need it, like when they need to make a claim.

You should always have as much insurance as you can afford to carry. Having too little is never good and if you have insurance you cannot afford is not any better too. A policy that is cancelled due to non0payment does you no good at all.

Florida is a no-fault state. If you have the proper state required coverage, you will be protected by the no-fault law. If you are in an accident whether you are at fault or not at fault, you will go through your own personal injury coverage for your medical expenses for the first $10,000. If you do not have at least a minimum insurance then you will not be protected and may be subject to paying for the injuries of the other people you hurt in the accident.

There are different types of coverage that could meet your insurance needs. Each of them has a proper purpose and you can select whatever type would suit you.

Personal Injury Protection and Property Damage are the minimum insurance in the state of Florida. Personal Injury Protection or P.I.P covers medical, hospital and funeral expenses up to the limits. It also covers others in your vehicle and pedestrians struck by your car. Property Damage liability covers if your vehicle damages another person’s property. Car, house, motorcycle, etc are the example of properties that would be covered.

Bodily Injury Liability is another important coverage. It covers other people’s injury or death that you are responsible for up to the limits you purchase. Though it is not required by Florida for state minimum insurance, it satisfies another law called the Financial Responsibility Law. It states that your license may be suspended if you are not financially responsible at the time of and at fault accident where someone gets injured or property damage occurs. By filing an SR-22, you may be able to get you license back. This form shows to the stated you are now carrying Bodily Injury Coverage and are now financially responsible. Usually you must carry this for 3 years with no lapses coverage.

Another common insurance people ask are the Full Coverage. Well, this is not an insurance coverage. Most people only know that their car dealers or bank wants Full Coverage so they ask for it. Actually, Comprehensive and Collision Coverage are what these companies look for. Collision covers repairs when your vehicle hits or is hit by another vehicle. It will also pay up to the book value of the vehicle at the time of a loss if it is destroyed. On the other hand, Comprehensive cover for loss caused by other circumstances other than collision like flood, theft, fir or animal damage. It also covers total losses up to the book value of the vehicle.

Medical and Uninsured Motorist are also other types of coverage. Your medical costs and your passengers injured in an accident are covered by the Medical coverage. Uninsured Motorist covers injuries to you and your passengers when the other person in the accident is at fault, but does not have enough insurance.

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