Why you need personal auto insurance
Risk is an inherent part of driving. An accident can leave you exposed to large losses, even after exercising extreme care. When selecting an insurance policy for your car or motor vehicle, it is essential that it provides comprehensive coverage with adequate limits.
Auto insurance protects you and your vehicle while driving. It contains collision, comprehensive and liability coverage amongst others. The collision and comprehensive portion protects the vehicle against covered physical damage. The liability section protects you against covered third-party claims for which you are held legally responsible. Additional coverages are available to expand the protections provided by the policy.
This insurance is compulsory in the state of Florida. You are required to purchase at a minimum USD 10,000 in personal injury protection (PIP) and USD 10,000 in property damage liability coverage. However; there is a wide gap between what is required by law and what will help you recover from an accident. Purchasing a policy based on the minimum is not enough to address the risks of operating motor vehicles.
Based on the minimum requirements, you will be left to pay the cost of repairing or replacing your vehicle entirely out of pocket. More importantly, if anyone is injured as a result of an accident for which you are at fault, compliance with the minimum insurance requirements will leave you uninsured for any successful third-party bodily injury claims. You will also have to bear the defense costs of legal proceedings.
The Personal Auto Insurance Policy
The personal auto insurance policy is a package of coverages designed to protect you against the hazards of the road. It can be tailored to your needs and budget. It is made up of the following:
- Liability Coverage: pays for bodily injury and property damage claims for which you as an insured become legally liable as a result of an auto accident.
- Medical Payments Coverage: pays for medical and funeral expenses that arise from bodily injury caused by a covered accident, to individuals specifically defined as insureds.
- Uninsured Motorist Coverage: pays the compensatory damages from bodily injury claims that you are legally entitled to receive from an at fault driver who is uninsured.
- Damage to Your Auto Coverage: pays for the physical loss or damage to your vehicle that arises from covered accidents. It is also known as collision and comprehensive coverage.
- Personal Injury Protection Coverage (PIP): pays for medical expenses, lost wages and funeral costs for you and your family members when injured in your, or someone else’s, vehicle or as a pedestrian. It is required in the state of Florida. It is also known as no fault coverage because it indemnifies you for the above described costs, regardless of fault in an accident.
The above are important protections against the risks you face while driving. However; the list is not exhaustive. You should review your coverage needs with your insurance broker to determine if there are other exposures that ought to be addressed.
Risk Reinsurance Holdings, Inc.
Risk Reinsurance Holdings, Inc. is an insurance brokerage firm in South Florida. As insurance brokers, we can help you understand your coverage needs and the products that are available to address them. Our goal is to find the right personal auto insurance solution on your behalf.
We are independent brokers. We work with multiple insurance companies in search for the right insurance product(s). We look to find the insurance solutions that will provide you the greatest protection at the best value.
Joshua S. Pestano (Insurance & Reinsurance Broker | President) is the founder of Risk Reinsurance Holdings and the person responsible for all insurance negotiations at our company. Joshua is a licensed and accredited property & casualty insurance broker with 10+ years of experience in the industry.
Try Risk Reinsurance Holdings today. Leverage our expertise and market access to solve your personal auto insurance coverage needs. Let us help get your insurance negotiations done right. You will find options to contact us in the section below.
Frequently Asked Questions
What is the role of Risk Reinsurance Holdings?
We are insurance brokers. We act as intermediaries between you and insurance companies. We work on your behalf to:
- Understand your insurance requirements,
- Develop comprehensive insurance programs,
- Find competitive insurance solutions,
- Provide expert insurance advice,
- Solve your insurance coverage needs.
What value can Risk Reinsurance Holdings add to my insurance search?
As insurance brokers we navigate the insurance marketplace to find the right coverage solutions on your behalf. We also help you avoid mistakes that can impair your ability to recover from your insurance policy after a loss. We use our industry knowledge and experience to properly transact insurance business.
How is Risk Reinsurance Holdings compensated?
Our earnings are derived from commissions in the insurance policies we help write. Therefore; using our services as professional insurance brokers won’t add to your overall insurance cost.
How much does personal auto insurance cost?
There are many factors that affect the premium that an insurance company charges to provide protection. Important amongst them are vehicle features and rating, driver’s experience and record and location where the vehicle is garaged and driven.
Is personal auto insurance mandatory?
Personal auto insurance is mandatory in all states. However; minimum insurance requirements vary from state to state. You must make sure that you comply with the requirements of the state you are driving in.
Does my vehicle affect my personal auto insurance rates?
Yes, your vehicle affects your personal auto insurance rates. Each vehicle’s characteristics are evaluated, and insurance rates are assigned accordingly. Other factors such as the value of the vehicle are also important to consider.
What personal auto insurance discounts are available?
There are many discounts that insurance companies offered to qualified drivers and/or vehicles. They vary from company to company but generally fall under the following categories: customer loyalty, demographics, driver affiliations, driving history, driver training, equipment-related and payment terms.
What does personal auto insurance cover?
Personal auto insurance is a package that combines the protections you need to address the risks you face while driving. It brings together physical damage and liability coverages under one policy.
How much personal auto insurance do I need?
The amount of insurance you should purchase will depend on your particular situation. Complying with the minimum insurance requirements of your state may not be enough. You should purchase as much coverage as your budget allows.
What is gap insurance?
Gap insurance is an important additional coverage that ought to be considered. If your vehicle is financed, and is stolen, or suffers a total loss, gap insurance can step in to cover the amount that remains outstanding on your car loan.
Who must be listed in the personal auto insurance policy?
All household members should be listed in the personal auto insurance policy, regardless of whether they will operate the vehicle or not.
Must I wait until my current personal auto insurance expires to switch?
No, you don’t need to wait to switch insurance carriers. You can cancel your insurance policy at any time.
Each company has its own guidelines for processing cancellations. The insurer whose policy is cancelled will send you a refund for the unused portion of premium, should you qualify. The terms of cancellation are shown in the insurance contract.
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