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April 23

Buying auto insurance?

Posted by Mahir
Filed under Uncategorized | No Comments

Most Floridians have had auto insurance since they’ve been on the road, but many may not fully know the ins and outs of coverage until they have to file a claim. But by then, it might be too late to learn that you’re uncovered — or undercovered — for certain liabilities. Insurance industry experts and consumer advocates say motorists can protect themselves by making sure they have the right coverage before that happens. They said there are several provisions of automobile insurance policies that most consumers don’t know about.Here’s a closer look at five key coverage areas you should be sure to examine before you hit the road.

Personal injury protection
Policyholders could be on the hook for damage costs from car accidents if they don’t have enough coverage. Lynne McChristian, a Florida spokeswoman for the Insurance Information Institute, said many drivers opt for the minimum coverage required by the state: $10,000 for personal injury protection and $10,000 for property damage liability. But that may not be enough to cover the damage caused by serious accidents.”Chances are that drivers need more liability insurance than the minimum because accidents cost more than the minimum amounts,” she said. “If someone is found legally responsible for bills that are higher than what their insurance covers, they will have to pay the difference out of their own pocket.”

McChristian suggests consumers consider collision and comprehensive coverage; uninsured motorists coverage to pay for hit-and-runs and for damage caused by someone without insurance; and bodily injury liability coverage, which pays for death or serious and permanent injury to others when you’re responsible for an accident. It covers all people on the policy, even when they’re driving someone else’s car.
“Insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident since accidents often cost far more than the minimum limits mandated by most states,” she said. McChristian said the higher your income and net worth, the more liability insurance you should consider purchasing because you can be sued.

This entry was posted on Friday, April 23rd, 2010 at 2:32 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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