What does auto insurance really cover?

When shopping for auto insurance in Naples or anywhere else in Florida, it is easy to feel overwhelmed by all the coverage options. From required minimums to optional add-ons, understanding what your policy covers can help you make smarter decisions and protect your wallet.

What Does Auto Insurance Really Cover blog photo showing hands around a paper car cutout.Florida is a no-fault state, which means your insurance pays for your injuries regardless of who caused the accident. As a result, the state requires every driver to carry Personal Injury Protection (PIP). This covers up to $10,000 in medical expenses, regardless of fault. PIP also pays 80% of medical bills and 60% of lost wages. If necessary, it covers household services and funeral expenses as well.

Along with PIP, Florida requires your auto insurance to include Property Damage Liability (PDL). PDL covers damage you cause to property, such as a car, fence, or mailbox. The minimum requirement for PDL coverage is $10,000.

While the state minimums are a starting point, they may not offer enough protection, especially in severe accidents. There are several optional coverages you can consider adding to your policy to protect against what the required coverage doesn’t.

Florida does not require Bodily Injury Liability (BIL) coverage, but many drivers carry it to protect themselves in serious accidents. BIL insurance covers injuries you cause to others in an accident and helps cover legal defense if sued.

Uninsured and Underinsured Motorist (UM/UIM) coverage protects you if you are hit by a driver without insurance or limited coverage. This is especially valuable in Florida, where many drivers are uninsured.

Comprehensive coverage is an option that pays for damage not caused by a collision. UM/UIM includes theft, vandalism, fire, floods, and falling objects. Comprehensive coverage is valuable if you are concerned about hurricane-related damage to your vehicle.

Other optional auto insurance coverage elements are collision coverage, rental reimbursement, and roadside assistance. These help you cover vehicle repairs or replacement, rental car costs during repairs, and costs related to towing, jump-starts, and other emergency services.

While carrying just the minimum required auto insurance might save money in the short term, it can expose you to high out-of-pocket costs in the event of a serious accident. Medical bills from car accidents can exceed $10,000 very quickly. Property damage liability of $10,000 may not cover newer or luxury vehicles. Choosing the right mix of coverage ensures you’re protected in real-world scenarios, not just legally compliant.

Every driver’s situation is different. Whether you’re commuting to work in Naples or taking weekend trips to Miami, a local independent insurance agent like those at Domain Insurance can help. Our expertise allows you to compare policies from multiple carriers and find the right coverage for your needs and budget.

Contact us or call (239) 610-1116 today to review your current policy or get a quote for a new one. We’ll help you get the protection you need without paying for what you don’t.

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