Car insurance is a requirement for being on the road—at least a minimum amount of coverage is. Limiting yourself to only Florida’s minimum coverage can leave you open to future costs if you are ever in an accident, even if the car accident wasn’t your fault. Carefully review your coverages to see where you can increase or add a benefit. Worried about your monthly premium? You could save on your premium if you raise your deductible or check these other factors affecting your premium.
While reviewing your coverages, did you know there are some added benefits that are not always explained in detail that are included in your coverage? While these details are typically in your full policy, they are not always mentioned in the summary descriptions of your coverage levels.
Some of the car insurance coverage you may not have known you had are:
In the event you are in an accident, and it is found to be your fault (or partially at fault), the other party may be inclined to sue for damages. Don’t stress! Your car insurance coverage provides legal help! In most instances, the suing party is actually suing your insurance company and it is your insurance that will pay out in the settlement (up to your coverage levels, at least). They will work diligently to examine the facts of the case and examine whether or not you hold any fault and if you do, how much that equates in monetary damages. From there they will determine if the suing party has any cause and determine a settlement amount to offer on your behalf.
Sometimes referred to as “Bad Friend Insurance”, this extends your coverage towards anyone you willingly and knowingly hand your keys off to and give permission to drive your covered vehicle. If your friend or extended family member gets into an accident while driving your vehicle, it will be your insurance that will cover the cost of damages (even if they have their own car insurance). This means you will have to pay your deductible to cover the repairs to any damage on your vehicle and it will be your insurance premiums that could increase in monthly after the accident. Be careful who you lend your keys to!
Not all carriers offer this, but many do and it is becoming even more commonplace to provide this benefit with car insurance policies. Some carriers may require a client to hold a policy for a few years prior to enabling this bonus coverage, but for many, it can be a significant benefit. Often, following an accident, insurance rates increase. Accident forgiveness is a promise made by your carrier to not increase your rates, although certain conditions may apply.
LEARN MORE: Pros And Cons Of Accident Forgiveness
Speak with an independent car insurance agent to determine the best car insurance policies and coverage types for the known and potential uses of your vehicle as well as any added benefits provided with your current carrier and car insurance policy.