Auto Insurance—Full Coverage vs. Liability

calculation insurance

Florida is ranked 5th on the list of states that spend the most on auto insurance every year! This has a lot to do with a hypervigilant state government, a strict regulatory infrastructure, and the availability of reliable insurance agencies.

In this post, we’ll walk you through two of the main types of auto insurance that are popular in Florida:

What is liability insurance?

Liability insurance covers the cost of any damage that you cause to someone else or their property while driving. This includes both medical care costs and the repair costs incurred by, say, a damaged vehicle. 

According to the Florida Department of Highway Safety and Motor Vehicles, before registering a four-wheeled vehicle, every resident must show proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance. 

PIP must cover as much as 80% of all the medical expenses that could arise from a potential accident. Medical expenses up to $10,000 should be covered—irrespective of who caused the crash. 

If you fail to maintain these levels of insurance coverage, the Highway Authority may suspend your driving license and vehicle registration, and charge you a reinstatement fee of up to $500. 

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Full coverage auto insurance

In most cases, full coverage covers the cost of any damage to your vehicle. There are two main types of full coverage auto insurance: collision and comprehensive insurance. 

Collision insurance covers all the damage incurred if you were driving, and collided your car. On the other hand, comprehensive insurance covers any damage to your vehicle that was caused by any reason, other than a road accident. This includes weather damage, theft, or fire. 

If you drive into a tree, you’ll need collision insurance. On the other hand, if a tree falls onto your car, you’ll need comprehensive insurance. In short, comprehensive insurance addresses a wider set of risks. 

While the decision to get liability insurance is mostly a state requirement, the same cannot be said for full coverage. Whether or not you need full coverage also depends on the age of your vehicle. As time passes, your car loses some value in the form of depreciation due to wear and tear. 

As your car ages, you’ll realize that the payment you get from your insurance company doesn’t justify the monthly payments you make for full coverage. In this case, you might want to spend the money you have put aside for full coverage on car repairs. 

Full coverage is usually a financially viable option if the car is not too old. 

Manatee Insurance is one of the leading insurance providers in Anna Maria Island and Holmes Beach, FL that offers car insurance. You can learn more about our insurance protection online!

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