Let me start by defining a few basic terms that are very common in the Auto Insurance industry. Insurance can be defined as the equitable transfer of a risk or loss from one entity to another in exchange for money. The Insurer is the insurance company that is covering the risk. The insured is the person buying the insurance cover. Premium is the amount of money that is charged for a certain amount of insurance coverage.
Auto Insurance can cover the medical payments of the insured party, physical damage of the insured vehicle, as well as third parties, which include bodily damage of people and property damage to cars where the insured is at fault. In Florida, personal injuries or no fault coverage, simple means that you have to file your injuries under your personal auto policy for injuries sustained up to the first 10,000. Insurance is a form of risk management used for protection against the risk of an uncertain loss.
Vehicle insurance is insurance purchased for cars, trucks, motorcycles and other road vehicles. It is used to provide financial protection against physical damage and bodily injuries arising from accidents that occur on the road and other liabilities that could arise. Car Insurance can also protect a vehicle from theft, fire or other damage sustained by a vehicle from other sources, other than accidents.
9 Important Coverages To Have
Auto Insurance was introduced in the United Kingdom in the 1930s. Before this, injured accident victims could not get any compensation and people faced high costs to repair their vehicles. Today, you have several options on how to effectively and completely protect your vehicle. 9 of the most important types of Car Insurance coverages are listed below:
- Comprehensive coverage - Also known as other than collision covers damage to your own car for items such as fire, theft vandalism, act of God, hitting an animal to name a few.
- Collision coverage - Covers your vehicle for physical damage regardless of who is at fault.
- Bodily injury Coverage - pays for injuries, pain and suffering and defense for the third party claimants if you are at fault.
- Property damage coverage - pays for property damage sustained to the third party if you are at fault.
- Uninsured motorist coverage - pays for your pain and suffering and injuries sustained from a under or uninsured motorist driver that hits you.
- PIP or No fault coverage - Pays 80% of the first 10,000 of your injuries regardless of who is at fault in the accident.
- Medical payments coverage - Pays the 20% that is not covered under your PIP coverage.
- Rental reimbursement - Pays a dollar amount for you to obtain a rental car if your vehicle is in the shop being fixed due to a claim.
- Roadside assistance - With most companies this will pay for towing services or flat repairs etc... to help you get back on the road or your vehicle towed to the service station or dealership.
Making sure you have the proper coverage's are paramount if you have a serious accident. Have you ever heard someone say "Boy I'm glad I had lousy coverage's for my accident?" To make sure you are properly protected, give the professionals at Southern Insurance Group a call for your insurance review. Our phone is 352 - 243 - 9000 opt 1 and our website is www.clermontinsuranceagency.com.
Tom Johnson - Owner
352-243-9000 - Ext 1011