Automobile Insurance Definitions

February 26, 2010

Comprehensive Coverage  Insurance designed to pay for the repair or replacement of the policy owner’s car in the event of damage not resulting from an accident.  Comprehensive insurance covers theft, fire, vandalism, weather damage, riots, missiles, and other similar circumstances which may cause damage to a vehicle.

Property Damage Coverage  An insurance policy which pays for damage caused to the property of others, including cars, as a result of a motor vehicle accident. Florida law requires minimum coverage of $10,000.00 property damage liability coverage.

Collision Coverage  Insurance designed to pay for the repair or replacement of the policy owner’s car in the event of an accident, no matter who caused the accident. Collision coverage usually requires the payment of a deductible when a claim is made and may be required to secure a new car loan.

Personal Injury Protection (PIP) Coverage (Sometimes Referred to as “No-Fault”)  Insurance designed to be paid without regard to “fault,” or more properly, legal liability. PIP is also called “no-fault” because, by definition, a claimant’s, or insured’s, insurance premium should not increase due to a PIP claim.  Florida law requires minimum coverage of $10,000.00 personal injury protection.

Bodily Injury Coverage  An insurance policy that pays for injuries caused to other individuals in the event of a motor vehicle accident.  Generally, insurance companys will only the allow purchase of UM/UIM coverage up to the insured’d current bodily injury limit.

Uninsured Motorist Coverage  An automobile policy option which covers one for property damage and bodily injury caused by another motorist who does not carry liability insurance.

Contact CLEARWATER PERSONAL INJURY ATTORNEY Joseph Montrone, Jr. for a free initial consultation regarding your accident case.

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