Basic components of a Florida Auto Insurance Policy

Acronyms like PIP (personal injury protection), PDL (property damage liability) and BIL (bodily injury liability) are easy to forget, making shopping for an auto insurance plan that much harder. Searching for help online can be equally confusing because states have different requirements for minimum amounts of automobile insurance protection.

In Florida, the minimum personal injury protection coverage is $10,000. PIP is also often referred to as Florida No Fault Insurance, because it covers the insured regardless of fault. It pays for medical or funeral coverage for the insured driver, others in the vehicle at the time of the accident and any pedestrians struck by the vehicle, as long as those people do not have PIP on their own insurance plan and do not own a vehicle.

The minimum property damage liability coverage in Florida is also $10,000. PDL covers damages that the insured member or the insured member’s family cause to other people’s property as a result of a vehicle crash. Florida requires that every driver carry PIP and PDL coverage for the duration of a driver’s licensing and registration period.

Bodily injury liability pays for permanent injuries or deaths when the insured person is responsible for an accident up to the limits set by the policy. The person must pay out-of-pocket if costs rise above the limits. Some Florida auto insurance companies operate preferred medical provider networks to help keep these costs low. BIL also provides legal representation if the insured members is sued. It pays for injuries caused by the insured driver, as well as other members of the household, even if they were driving another person’s vehicle. Similarly, BIL may also cover others who were using the insured driver’s vehicle with his or her consent.

It is important for Florida drivers to maintain insurance on their vehicles, as the Florida Department of Highway Safety and Motor Vehicles can suspend driving privileges for up to three years or until a person can provide proof of insurance, with reinstatement fees between $150 and $500 dollars.

Though understanding the components of an auto insurance policy can be difficult, a good agent can help explain the information in clear and easy-to-understand terms.

Learn more about Florida auto insurance from Florida car insurance company, AGIC Insurance at http://www.agicinsurance.com.
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