After a car accident, you will have to deal with your insurance company and probably the insurance companies of anyone else involved. It is imperative that you understand the insurance coverage you have and that the at-fault party has because this will affect your compensation for the accident. Not every policy is equal.
You need to understand that each policy will have different coverage options, which can affect how the insurance company pays you for any damages. The Insurance Information Institute explains that coverage provides for liability and your damages depending on your policy.
Uninsured and underinsured motorist
If you have an accident with someone who does not have insurance or whose insurance coverage is not enough to pay for all your damages, then an uninsured and underinsured motorist coverage can help. It helps to cover the gap between the at-fault party’s insurance coverage and your needs.
Collision
If you need your insurance to cover damage you incur in the accident, then you need collision coverage. It will cover your property damage costs associated with an accident. It only covers property. It will not reimburse you for your medical costs. You would have to use your own medical insurance for that.
Liability
Florida does not require any liability coverage for bodily injuries. This is one more reason to make sure you have uninsured motorist coverage as part of your policy. Property damage, as the name suggests, would cover damage another driver does to your vehicle. Bodily injury covers any medical bills you have as a result of the accident, paid by the other driver’s insurance. These liability options do not pay for your damage or injuries.
Another type of liability coverage is personal injury protection (PIP), which will cover other damage that results from an accident, including funeral expenses, lost wages and other similar expenses. PIP falls under your own policy and not someone else’s. It is “no-fault”, not liability.
It’s important to understand all your coverage options to ensure you aren’t taken advantage of.