Insurance

A Crash Course in Auto Insurance

Florida law requires automobile and truck owners to carry a minimum level of insurance, but wise Floridians protect themselves beyond that. It is essential that you understand the legal requirements and the additional options that you have.

Here are some tips:

• The Florida Department of Financial Services has assembled a comprehensive primer that touches on all things Floridians need to know about auto insurance. Click this link and download Auto Insurance - A Guide for Consumers: www.myfloridacfo.com/consumers/guides/auto/docs/autoguide2008.pdf
• Make sure you know what is required for your vehicle. The state requires that all motorists carry a minimum of $10,000 PIP (personal injury protection) for themselves and $10,000 PDL (property damage liability) to cover damages to vehicles or other property owned by others. However, the company that loaned you money to buy the vehicle may require that you also purchase full liability, uninsured motorist, comprehensive and collision insurance. In general, safeguard your well being, your investment in the vehicle and your other assets by obtaining the appropriate level of liability, comprehensive and collision coverage.
• Be aware of the factors that determine your personal insurance rates. For example, your driving record, as well as your age, occupation, marital status and driving habits, affect the cost of your policy. You also will pay more if you drive an expensive, high profile car, use your vehicle for business purposes, drive far to work, or live in a city center. Before purchasing a vehicle, check insurance costs. Cars that are expensive to repair tend to be the preferred targets of thieves and have much higher insurance costs.
• Comparison shop. Prices for the same coverage can vary by hundreds of dollars, depending upon the insurer. Insurers should offer both fair prices and excellent service. Dependability at the time of a claim is essential. Check with friends about their insurers, check consumer guides on-line, or try the Department of Financial Services at http://www.fldfs.com/. When you've narrowed it to three insurers, get price quotes.
• Consider dropping comprehensive and/or collision coverage on older cars. A good rule of thumb: Once the vehicle is yours free and clear and worth less than $1.000, it is probably not cost effective to carry full coverage.
• If possible, place your homeowner and automobile coverage with the same company. Many companies will offer a 5 percent to 15 percent discount if you buy both policies from them.
• Increase your deductibles. For example, increasing your collision deductible from $200 to $500 can reduce your collision premium by 15 percent to 30 percent. (You would have to pay an addition $300 for any insured repair that might be necessary, but the chances are that increasing your deductible will save you money over the long run.) When getting quotes, compare prices using various deductibles.