You’ll see a lot of ads advertising cheap car insurance, but unfortunately I’m here to tell you that you do get what you pay for. The problem with cheap insurance is that it provides you with a false sense of security, you think you’re covered when really you are not. Very often a cheaper policy will be light on your bank account in terms of premiums, but let’s take a look at what a Florida minimum policy actually covers.
- Florida requires by law that the policy cover $10,000 in personal injury protection, which covers you (the owner and driver of the car), regardless of fault. It will also cover your family and other members of your household, passengers who do not have Personal Injury Protection, and people who are authorized by you to drive the car. Personal Injury Protection also covers your child if they suffer an injury while riding on a school bus, and protect you while you’re a passenger in someone else’s vehicle.
- Property Damage Liability pays for damages to other people’s property caused by the operation of your motor vehicle.
That’s it. That’s what it covers. It doesn’t pay to fix or replace your car, nor does it cover anything above the limits of your Personal Injury Protection or Property Damage Liability limits. There is no Bodily Injury Liability coverage should serious injury, permanent disability, or death should you be because of an accident. In other words, for damages over and above what is provided by “cheap auto insurance” you could find yourself the target of a lawsuit to cover the difference.
Remember, cheap auto insurance often has a higher deductible, and that it costs a lot of money to repair or replace a […]