Car Insurance 101

Insurance Authority Inc

Obviously, no driver can afford to be without automobile insurance.  But how do you calculate just how much Florida auto insurance coverage you really need?  Today, most states require that all drivers purchase car insurance, and in states where coverage is mandated, there is usually a minimum coverage threshold that must be met. Although many drivers assume this minimum coverage is sufficient in the event of an accident, this couldn’t be more far from the truth.  That is why is always advised to seek guidance from a licensed, reputable Florida insurance agent.  The Florida auto insurance agent can easily tailor a policy suitable to your needs—and budget—so that you may obtain the best levels of coverage including liability and property damage.

Why a Minimum?

When a state passes a mandatory law pertaining to automobile insurance, all drivers of that state must adhere to the law’s rules, regulations and guidelines.  That being said, if the law involves a monetary limit, all drivers must purchase said minimum limit coverage in order to possess legal driving privileges within the state.  As there are many different classes of incomes in any given state, the state, recognizing the same, must see to it that any monetary amounts resulting from such minimum limit law remain affordable to all residents of the state.  And as increasing coverage limits equate to increasing prices, the state’s minimum limits are very low.  While policies may be more affordable, adequate insurance protection is not offered therein and often results in very costly out-of-pocket expenses for the driver.

For starters, review your state’s minimum coverage levels.  Do these levels offer you adequate coverage in the event of an accident?  Let’s assume that your state requires drivers to carry a minimum of $10,000 in property damage insurance.  Now let’s assume you total your neighbor’s brand new Porsche 911!  Without adequate property damage insurance levels on your existing Florida auto insurance policy, you may find yourself responsible for any and all repairs above and beyond the minimum limits!  Note that the same holds true for matters involving personal injury.  These are just two reasons why it is of tremendous importance to review your coverage levels—and all options you may have—with a licensed, reputable Florida auto insurance agent.

The Low Cost of Upgrading

Although many drivers simply assume that upgrading an existing car insurance policy from the state mandated minimum coverage levels to more comprehensive coverage will increase the policy premium significantly.  That simply is not the case! In many instances, opting for additional coverages will substantially increase coverage limits and result in minimal costs.  In other words, upgrading your coverage often proves extremely affordable, especially if you are classified as a “good risk” driver, but even those individuals with a less than perfect record are usually pleasantly surprised at just how affordable that extra coverage can be.

Be sure to review your Florida auto insurance policy at each renewal period.  Seek the assistance of an insurance professional if you have any questions regarding the same.  This poses the best method for adequate protection for you, your family, your vehicle and your personal property. Stay apprised of state insurance laws, familiarize yourself with your policy options and available limits, and adjust your coverage levels accordingly at each renewal.