When reviewing your Florida auto insurance policy, the array of terms and coverage options can sometimes feel like a jumble. To help demystify the process, let’s break down the key terms and coverage options you may encounter on your policy.

1. Bodily Injury Coverage

This type of coverage helps pay for medical expenses and legal fees if your injure someone else in an accident. It’s essential to have adequate bodily injury coverage to protect your assets and financial well-being in case of a lawsuit. You’ll often see this coverage expressed as two numbers, such as 10/20, which represents the coverage limits in thousands of dollars per person and per accident. Note that Florida is one of the few states that does not require this coverage, leaving many Floridians dangerously uninsured. We strongly recommend that all Floridians add this coverage to their auto policies, in as high of a policy limit as financially feasible.

2. Property Damage Liability

Property damage liability coverage pays for damage you cause to another person’s property, such as their vehicle or a fence, in an accident where you are at fault. Similar to bodily injury coverage, it’s expressed as a coverage limit, like $50,000, indicating the maximum amount the insurance company will pay out for property damage.

3. Personal Injury Protection (PIP)

PIP coverage is mandatory in Florida and helps pay for your medical expenses and lost wages regardless of who is at fault in an accident- so long as treatment occurs within 14 days following the accident. This coverage is often referred to as “no-fault” insurance because it applies regardless of fault. In Florida, $10,000 of PIP coverage is required.

4. Uninsured/Underinsured Motorist Coverage

This coverage protects you if you’re in an accident with a driver who doesn’t have insurance (uninsured) or doesn’t have enough coverage to pay for your damages (underinsured). UM/UIM coverage can help cover your medical expenses, lost wages, and even non-economic damages like pain and suffering. It’s expressed similarly to bodily injury coverage, such as 10/20, indicating the per person and per incident coverage limits. Note that Florida also does not require this coverage, leaving many Floridians dangerously underinsured.

5. Collision Coverage

Collision coverage pays for damage to your vehicle caused by a collision with another vehicle or object, regardless of fault. This coverage is important if you have a newer or more expensive vehicle as it can help repair or replace your car after an accident. You’ll see the deductible amount listed under collision coverage, which is the out-of-pocket responsibility you owe before insurance kicks in.

6. Comprehensive Coverage

Comprehensive coverage is another optional type of coverage that helps pay for damage to your vehicle not caused by a collision, such as theft, vandalism, or natural disasters. Like collision coverage, you’ll also have a deductible apply when using this coverage.

7. Rental Reimbursement Coverage

Rental reimbursement coverage is another optional add-on that pays for a rental car while your vehicle is being repaired after a covered accident. This coverage can provide peace of mind knowing you’ll have transportation while your car is out of commission.