Every year around 200,000 motor vehicle accidents occur in Florida. That translates to around 650 car accidents occurring across the state each day.
Although car accidents happen in the blink of an eye, they can have a lifelong impact. It’s, therefore, critical you understand car insurance rules, regulations, and benefits to help you protect yourself and others when on the road.
Here’s a look at five critical benefits of carrying an auto insurance Florida policy that make it a worthwhile investment.
1. Protects You Financially
For many Americans, a car is one of their bigger ticket purchases. When you are in an accident, or your car gets stolen, it can set you back financially. Not having a solution to fall back on when such a notable expense comes your way only makes life harder for many people.
Having auto insurance helps you avoid taking a significant financial hit after an accident or car theft. If you are involved in an accident where others get injured, there’s a great chance you may need to foot their bills. Without an all-round car insurance policy, that can drive you into financial straits.
2. Saves You Time
After you are involved in an accident, the resulting negotiations with drivers and other parties can take up a lot of your time.
When you take out a great car insurance policy, it can save you a lot of time in navigating the fallout after a car accident. You won’t have to manage the costs of repair for the damage or spend too much time negotiating with third parties.
As long as you have a good policy, issues like towing, replacement and/or repairs, can be handled by your insurance for the most part. If you need to file a claim related to an accident, your insurance company can help you negotiate, saving you time and the hassle.
3. Slow Down Devaluation
Many issues impact your vehicle that can reduce its value. For example, you never know when an act of God or horrendous weather can strike and damage your car. Should these adverse eventualities strike, your robust policy will help you restore the vehicle to its marketable value.
In case you ever plan or find you unexpectedly need to sell your car, you won’t lose a significant amount due to vehicle devaluation.
4. Peace of Mind
There is something to be said for the value that peace of mind adds to your quality of life. Without the right auto insurance policy, you will hardly use your car peacefully. Any slight issue on the road will become a cause for stress.
A good policy ensures you can rest easy knowing that other drivers and pedestrians around you are protected. In case you get into an accident, you can afford to foot the foot bills associated with repairs and medical assistance.
5. Compliance
As with all other states (except Virginia and New Hampshire), having a form of car insurance is mandatory. If you are involved in an accident or are pulled over by the police, you’ll need to show proof of insurance, and it needs to be current.
In Florida, the minimum car insurance coverage the state expects each driver to have is $10,000 in personal injury protection (PIP) and another $10,000 in property damage liability (PDL).
PIP is critical as it covers you when you incur medical expenses after an accident or lose wages due to an accident that keeps you from working. Since Florida is a no-fault car insurance state, the PIP element of your cover will pay out after an accident no matter who caused it.
Despite Florida’s no-fault status, other people can still sue you for damages after an accident. It’s therefore wise to carry extra car insurance coverage that goes beyond the required minimums.
Bodily injury liability (BIL) is one such cover you should have as a car owner in Florida. If you have an accident and others get injured or killed because of your negligence, they can sue you for damages. If you’re found culpable, the cost could be extensive, and without BIL you’ll end up paying hefty amounts out-of-pocket.
Aside from BIL, there are two other optional car insurance covers you should consider carrying in Florida, i.e., collision and comprehensive insurance.
Collision insurance helps pay for damage you suffer due to a car accident. Collision insurance isn’t part of the minimum required auto insurance cover, but it can help offset costs related to an accident. Comprehensive insurance is supremely useful for covering damage arising from other issues unrelated to car accidents but which still put a dent in your finances.
SR22 Insurance Florida Rules
For the drivers that the state classifies as high-risk, there is more they need to take on beyond minimal car insurance coverage. The SR22 is not another type of insurance cover but rather an endorsement tied to your auto insurance policy.
Once you purchase car insurance as a high-risk driver, your policy provider will confirm to the state that you indeed have car insurance. The SR22 is what your insurer will file as an endorsement that you hold a valid car insurance cover.
Essentially, the SR22 tells the state that as a high-risk driver, you are complying with the law. Carrying an SR22 becomes an issue if you are discovered to be driving without a valid license. You can also be required to take out an SR22 if you have several driving violations to your name.
Once the state requires you to file an SR22, you will have to maintain it for three years. If during that period, your policy expires or lapses, your insurance provider is expected to inform the state.
As long as you comply fully with all the SR22 insurance requirements, the state will lift it after the required period. However, if you don’t comply with all the terms, you risk having the state suspend your license.
Don’t Hit the Road Without Auto Insurance
It only takes a brief instant for a car accident to happen, but the effects can last for the rest of your life. As a result, car insurance is something you’d rather pay for and never have to use than avoid investing in only to find yourself in need of it. You should spend some time understanding the rules and regulations surrounding vehicle insurance Florida policies to get the best deal and protect your interests.
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