Some Important Insurance Coverage Concepts You Should Know

Coverage and limits:

* Liability: Any insurance policy that protects individuals or businesses from being sued or held legally responsible for malpractice, injury, or negligence. If the insured is found legally responsible, liability insurance policies will cover legal costs as well as any legal payouts. These policies typically do not cover contractual liabilities and intentional damage.

* Bodily injury: Damages to third parties when the insured is at fault. These include medical bills, income loss, pain and suffering and any other effects of the physical harm sustained.

* Property Damage: Infliction to tangible property (third-party) when the insured is at fault. This includes loss of use. Florida law requires this coverage. (Damages to another vehicle or house, electric poles, fences, etc. ).

* Medical Payments: Covers costs incurred for medical and funeral services to accident victims, regardless of fault or legal liability.

* Uninsured Motorists – This coverage covers compensatory damages for bodily injury, and amounts that would otherwise be recovered from another’s liability insurance (when the injured are not at fault). Uninsured motorists does not duplicate other payments.

* Non-Stacked or Stacked: The coverage limits for two or more vehicles are combined to determine the maximum insurance coverage available to an injury victim in an accident. While the Non-Stacked applies to injuries sustained while driving a motor vehicle, it is limited to the motor vehicle’s limit.

* Personal Injury Protection (PIP). Personal injury protection (PIP), can pay for expenses related to injuries sustained in an accident. These expenses may include hospital and medical bills, as well as any expenses that are not covered by your insurance. There are penalties for not having PIP insurance.

* Comprehensive: Insures the vehicle against damage other than collision like fire, theft or vandalism, falling objects, windstorm, flood, explosion, windstorm, flooding, contact with animal/bird, and breakage of glass.

* Collision: A collision is an object that has been struck or thrown by another object.

* The eligible types include a private passenger car and a van or pickup that weighs less than 10,000 pounds. They are not intended to be used for work. Eligible vehicles can be leased or owned by the insured for six months or longer.

* A Personal Auto Policy will insure your vehicle. Not all insurance companies will accept vehicles registered under the name of a corporation under a Personal Auto Policy.

* Some companies require that the insured be the registered owner of the vehicle. The policy cannot be written under the name of the driver.

* The address (zip code), where the vehicle is stored.

* Multiple vehicles can be rated in different areas depending on their garage addresses. i.e. : Students go to college.

Driver classification:
* Driver classification is determined by the operator’s age, sex and marital status, as well as how often they drive the vehicle(s).

* Rates are higher when the principal operator of the company is a young, unmarried man and lower when there are no such operators.

* All household drivers must be listed on the policy. They are also considered to rate the policy.

Driving Record
* Points are awarded for major traffic violations and at fault accidents during the preceding three years. Points are not counted in the same way as for the Driver License.

* Companies will not accept drivers with a License Under Suspension. A License with Suspension (already Reinstated), is also an option. This policy’s premium will be determined. They forfeit the safe driver discount.