What is Full Auto Coverage?

When purchasing car insurance, most people are concerned with the type of coverage they have and how much it costs. Be careful when an insurance agent tells you that, “you have full coverage.” Full coverage for one person may be completely different than full coverage for another.

Insurance companies usually offer the following types of automobile insurance coverage:

  • Personal Injury Protection coverage;
  • Property Damage Liability coverage;
  • Bodily Injury Liability coverage;
  • Collision coverage;
  • Comprehension coverage;
  • Uninsured Motorist coverage;
  • Underinsured Motorist coverage;
  • Towing coverage;
  • Medical Payments coverage;
  • Rental Reimbursement coverage; and
  • Mechanical Breakdown coverage.

In Florida, the law requires that all vehicle owners are required to possess both Personal Injury Protection coverage and property damage liability coverage, with minimum insurance limits of $10,000.00 for each type of insurance.

Personal Injury Protection coverage (also called PIP), usually pays a portion of your medical bills and lost wages, if you are injured in an accident involving a motor vehicle. Some PIP policies will allow you to exclude coverage for lost wages at a reduced insurance premium if you are retired or elect to not seek insurance coverage for lost wages. Property Damage Liability coverage protects you if are at fault for causing a car accident and you damage the property of another.

While these types of insurance coverage may be considered “full coverage,” under Florida law, you are risking your driver’s license if you operate a motor vehicle with this minimal coverage. If you are involved in a collision with a motor vehicle and cause more than $10,000.00 in property damage, under certain circumstances, the State of Florida will suspend your driver’s license until you pay for the damage you caused. The same situation may occur if you injure someone while operating a motor vehicle. Also, under certain circumstances, you may put your financial security at risk by having insufficient insurance coverage.

It is extremely important to speak with a licensed insurance agent, who can explain all the different types of insurance coverage available. While no one likes to spend money on insurance, having the proper insurance coverage will ensure that you and your family are properly protected. An experienced auto accident attorney can explain each type of insurance coverage and the reasons why it is important to have them.