What is auto insurance?
Auto insurance protects you against financial loss and damages if you have an accident. It is a contract between you the policyholder and the insurance carrier. You agree to pay a premium and the insurance provider agrees to pay your losses as defined in your policy. Car insurance provides property, liability, and medical coverage.
- Property coverage pays for damage, break-ins, vandalism, and theft of your car.
- Liability coverage – is to pay the losses and damages that you cause to other parties involved.
- No-fault coverage to pay you and the passengers in your car for medical and other related expenses due to an accident
An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you’re financing a car, your lender may also have requirements for comprehensive and collision. Most auto policies are for six months up to a year. Your insurance carrier should notify you by mail or call when itβs time to renew the policy and to pay your premium.
Why do I need auto insurance?
- To abide by state laws – Depending on the state each have mandatory requirements for liability, injury, and property damage.
- To satisfy loan and lease requirements If you’re purchasing a new car. Since the lender is the title holder during the duration of your financing they want to protect their investment. Comprehensive or collision coverage will help pay to repair or replace the vehicle if it’s damaged in a covered loss.
- To protect your personal assets and finances – If you are in an accident you could be held liable for the cost associated with the accident. For example medical costs due to an injury, or loss of time from work and compensation. Liability in most cases will cover some of this but in most cases not all of it. Which would mean you would somehow have to come out of pocket!
- To protect your loved one and passengers – Medical payments or coverage and personal injury protection will help you pay for your medical expenses if you’re injured in a car accident. It also may help cover your passengers’ expenses due to the accident. Coverage may help pay for hospital visits, doctor bills, and surgery.
- To protect yourself – Even though liability coverage is a requirement many risk driving without the most recent data from the Insurance Research Council (IRC) estimates that approximately a little over 16 percent of the driving population in the United States of America or uninsured motorists. There are more than eight states where you have more than a 1 in 5 chance of findingΒ an uninsured motorist on the road driving uninsured! This is against the law and has serious repercussions if caught. Could result in fines of excess to $5,000 for not having insurance, suspended a license and even time in jail.
If you have any question on a need to obtain a free quote on auto insurance please contact Kelly Smith at (727) 861-3250Β If you’re using your auto for business, you need to ensure that you have proper coverage.Β Whether you have one auto or an entire fleet, we’re here to help you protect yourself and your business.
We have the most competitive companies to cover you and your auto. No matter the vehicle or your age, we will get you on the road in the most economical way possible, with the proper coverage to both own your car and drive it in the state of Florida.Β Bring your declaration pages in for us to review and explain the coverages and help you decide the best coverage to give you the protection you need and want.