Auto Insurance – How Much Do I Need?

Auto insurance is a fact of life for American drivers, and while we all know that having car insurance is a requirement, how many of us really understand the coverage we pay for year after year? Your policy may have major gaps that could leave you exposed to a lawsuit or unable to cover all the medical costs and damages related to a car accident.

Below is a look at the minimum state law requirements in Florida and how optional coverage could help protect you and your family.

Minimum Required Coverage

The minimum amount of car insurance that is required by law in Florida is $10,000 in personal injury protection and $10,000 in property damage liability. Personal injury protection will cover your medical expenses and your passengers’ medical expenses if you are in an accident. This is referred to as “No Fault Insurance” in Florida because coverage is provided regardless of who caused the accident.

Property damage liability will cover damage to the other party’s vehicle if you are at fault in an accident. Additionally, drivers who don’t own their car and are leasing or financing it might be obligated to carry additional car insurance coverage. This is because the lien holder (the company who leased the car to you or who loaned you the money to buy the car) wants to make sure that their property is protected.

Optional Coverage

You should keep in mind that having the minimum auto insurance to meet state law requirements is only a starting point. Major car accidents can cause damage far beyond the minimum insurance coverage.

There are also additional types of coverage that you should strongly consider including:

• Bodily Injury Liability, which pays the other party for serious injuries you caused. It is a requirement for some drivers who have had previous accidents.
• Collision Insurance, which will pay for repairs to your vehicle.
• Uninsured/Underinsured Motorist, which covers your vehicle if you are in an accident, and the other driver either doesn’t have insurance or only the minimum amount.
• Comprehensive Coverage, which pays for damage to your vehicle that happens outside of an accident such as theft or vandalism.

There are also other add-ons to keep in mind such as roadside assistance and rental car coverage if your car isn’t drivable after an accident.

Understanding the amount and type of auto insurance coverage that makes sense for your unique situation can be complicated. Synergy can help. As an independent insurance agency, we are free to research the entire marketplace without being limited to the products of one company.

Contact us for a free review of your current policy whether you are a new or existing client. We will make sure you have the best coverage to match your driving needs!