Auto insurance is a topic that has many myths and misconceptions surrounding it. Sometimes, the auto insurance industry’s language causes misunderstanding. Other times, the media creates misconceptions. These misconceptions about auto insurance may lead to making poor choices about your coverage. These are some of the most common auto insurance myths and their realities:
Myth #1: Minimum Liability Coverage is All You Need
Reality: In Florida, vehicle owners must have a minimum of $10,000 in both personal injury protection (PIP)—AKA no-fault insurance– and property damage liability (PDL) coverage to register a vehicle. PIP covers medical bills, lost wages, and funeral costs for injuries sustained in an accident, regardless of fault. PDL covers liability if the car damages another person’s property in an accident. This minimum coverage does not cover the damage to your vehicle or your medical bills. Having the bare minimum in insurance can get really pricey, really quickly.
Myth #2: Accidents That Are Not Your Fault Never Raise Your Rates
Reality: Even if an accident is not your fault, it can possibly make your insurance company see you as a higher risk, potentially raising your rates. This occurs more often if you are involved in multiple not-your-fault accidents.
Myth #3: A Full Coverage Policy Covers Everything
Reality: A full coverage policy is a deceptive name because it makes an auto insurance customer believe that they are entirely covered. While a full-coverage auto insurance policy covers a lot of things, it has several limitations, including:
- Your Medical expenses–Full coverage does not cover medical expenses if you or a loved one is seriously injured in a car accident
- Repairs to Your Vehicle—While full coverage pays for damages to the other driver’s vehicle, itdoesn’t pay for your repairs after an accident.
- Car replacement—Full coverage doesn’t cover the cost to replace your car if it’s stolen
Myth #4: Someone Else’s Insurance Covers Them If They Drive Your Car
Reality: Because every driver in Florida is required to have auto insurance, the policy follows that of the car owner’s vehicle. They should be covered as long as they have your permission to drive the car. If the borrowing other driver has an accident, your insurance may cover damages and injuries up to your coverage limits. If the driver borrowing the vehicle also has insurance, their policy may also cover damages beyond the coverage limits of the car owner’s plan. If you are not sure if your insurance policy covers permitted drivers by default, check with your local auto insurance expert about these types of drivers.
Myth #5: PIP Coverage Covers 100% of Your Medical Expenses
Reality: The PIP coverage is divided to cover the accident-related costs of up to $10,000 for both parties. PIP benefits cover the following:
- 80% of essential medical expenses
- 80% of out-of-pocket prescription, rehab service, and dental cost
- Travel expenses to and from hospitals or medical treatment facilities
- $5,000 of death benefits
- 60% of lost income
Mizrahi and Garris Insurance Agency – Auto Insurance Experts
Allow the experts at a Jacksonville independent insurance agency help you navigate these auto insurance myths. We can deliver an auto insurance policy that ensures that you and your loved ones are protected in the event of an auto accident.
When you select Mizrahi and Garris, you’re not just a client; we consider you family. Give us a call (904) 262-9202 or click “Free Quote” to talk to an insurance expert today.