Learn The Facts About Florida Collision Insurance?

Answer 1

A full auto insurance protection policy will include collision coverage. Florida drivers should always carry adequate collision and comprehensive insurance to cover the costs of vehicle and property damage. In the state of Florida vehicle owners are required to carry personal injury protection and property damage insurance, but this covers only property damage and medical costs for individuals not At Fault in an accident caused by the insured. If a driver damages his or her own vehicle or certain items of property, collision insurance will cover the cost of repairs.

Recommended Amount Of Collision Insurance In Florida

A new car that is financed will require collision insurance as part of the loan agreement. Even if a car is paid for in full and the owner holds title, collision insurance is recommended if the vehicle is worth a substantial amount of money. Customers can contact a licensed insurance agent to discuss the costs of collision insurance, which varies widely depending on the vehicle covered and the driving record of the policyholder.

A basic collision insurance policy will cover damages to the vehicle in an amount not exceeding the actual value. If a car is worth $10,000 the policy will cover this amount. The insurance will in most cases carry an agreed upon deductible which the insured must pay out-of-pocket. Most repairs to a car will not cost nearly as much as the vehicle is worth, but in the event of a serious accident caused by the insured that renders the car useless, collision insurance will pay off the loan balance. If the car is worth $10,000 and the loan balance is less than this amount, collision insurance will cover the entire remaining principal. In the event of negative equity, collision insurance will only pay up to the value of the car minus the deductible.

Covering Losses On A Stolen Vehicle

When collision insurance is purchased the cost may vary according to where the vehicle is kept at night. Some neighborhoods have a higher number of stolen vehicles reported each year. The comprehensive insurance section of a full collision coverage policy will pay off the loan balance if the vehicle is never recovered. If the car owner is deemed by the insurance company to be living in a neighborhood where vehicles are frequently stolen, policy costs for collision and comprehensive insurance may be higher.

Setting Deductible AmountsFlorida drivers can choose several deductible amounts when purchasing collision insurance. The most common amount is $500 and is the figure used when initial quotes are given. Drivers can choose a lower deductible but the policy will be slightly more expensive. Some insurance companies offer safe drivers a shrinking deductible package, where the out-of-pocket expense for car repairs decreases each year the policy is in force.