How does liability coverage work in auto insurance? Driving a vehicle comes with significant responsibility, as a simple mistake can lead to accidents affecting others, damaging property, causing injuries, or even resulting in loss of life.
In Florida, the legislation reflects this reality by requiring owners of vehicles with at least four wheels to have auto insurance that covers a minimum of $10,000 in Personal Injury Protection (PIP) and $10,000 in Property Damage Liability for third parties. These are the two coverages mandated by law.
The key here lies in understanding the importance of liability coverage in auto insurance. In essence, liability coverage is the part of the policy that protects against physical and material damages caused to third parties due to a traffic accident.
It’s essential to note that while Florida law only mandates coverage for damages to third-party property, it doesn’t require coverage for physical injuries or damages caused to other individuals, nor does it exempt drivers found at fault in an accident from liability.
To avoid legal and financial complications, it’s highly recommended to consider Bodily Injury Liability (BIL) insurance. This additional coverage covers injuries to third parties if you’re deemed responsible for an accident. This coverage protects the vehicle owner and those authorized to drive the car.
A significant advantage of a BIL policy is that it provides coverage even when driving a car registered under someone else’s name. Besides third-party medical assistance, BIL offers legal defense in case of lawsuits.
It’s crucial to understand that if someone is found guilty of driving under the influence (DUI), the law stipulates that for three years, this person must have BIL insurance with a minimum coverage of $100,000 per person and $300,000 per accident.
When selecting an insurance policy, keeping oneself from the minimum coverage set by the law is advisable. I think it’s best to discuss each type of coverage with your Univista Insurance agent and assess its impact in various scenarios. Investing in adequate coverage isn’t just about meeting legal requirements but comprehensive protection in unforeseen road situations. How does liability coverage work in auto insurance?
Call us today for a thorough assessment! (305) 985-4126. You can also get a free quote here.
