Jacksonville Auto Insurance: Tips & Information
Florida Auto Coverage - Comprehensive / Other Than Collision
Comprehensive or Other Than Collision Coverage pays for damage to a vehicle from incidents other than a collision including: fire, theft, windstorm, vandalism or flood. It also covers damages caused by falling objects or from hitting an animal.
If your policy includes Comprehensive coverage (a.k.a. "Other Than Collision") at the time of a disaster, then wind and flood damages are covered. For example, auto glass broken by windblown objects, vehicles overturned by the force of the wind, or auto glass that pops out due to a sudden drop in atmospheric pressure, are all covered losses. Windshield glass claims are not subject to the deductible.
Flood as defined by the NFIP National Flood Insurance Program as a general and temporary condition of partial or complete inundation of normally dry land areas from:
. overflow of inland or tidal waters,
the unusual and rapid accumulation or runoff of surface waters from any source,
Mud slides, (i.e. mud flows) which are proximately caused by flood, as defined above, and are akin to a river of liquid and flowing mud on the surface of normally dry land areas, as when earth is carried by a current of water and deposited along the path of the current, and
the collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by waves or currents of water exceeding the cyclical levels which result in flood, as defined above.
Auto Coverage - Collision
Collision coverage pays for repair or the actual cash value of the insured's vehicle if it collides with another vehicle, flips over, or crashes into an object (except animals), regardless of who causes the accident.
Auto Coverage - Medical Payments
Medical Payments coverage is for payment of reasonable expenses incurred for necessary medical and funeral services because of bodily injury caused by an auto accident and sustained by an insured . Generally, the expenses must be incurred within 3 years of the accident. However, the courts have required payment when a child is injured but it is medically determined that the treatment should be delayed, for example dental work or plastic surgery.
Auto Coverage - Bodily Injury Liability
Bodily injury means physical harm, sickness, disease, or death resulting from any of these. Claims for bodily injury can be for damages such as medical bills, loss of income, and pain and suffering.
Auto Coverage - Accidental Death & Dismemberment
Accidental Death and Dismemberment covers the insured for accidental death or dismemberment in an automobile accident, regardless of fault, up to the limits of the policy.
Auto Coverage - Financial Responsibility Law/Bodily Injury Required
An operator of a motor vehicle involved in a crash or convicted of certain traffic offenses, shall respond for damages they cause and show proof of financial responsibility to respond to damages in future accidents.
The required limits are: Bodily Injury $10,000. each person, $20,000. each accident.. Property damage limit of $10,000. The insured may combine the two listed above to a single limit of $30,000 per occurrence. Verification of the required limits for bodily injury and property damage must be provided by submitting a SR-22 from their insurance carrier.
In some cases, Florida Law requires drivers to carry Bodily Injury liability insurance. This requirement applies to drivers convicted of certain traffic violations, such as driving under the influence of alcohol or drugs. It also applies to drivers who are involved in an accident but cannot pay for damages.
Drivers convicted of driving under the influence of alcohol or drugs must provide proof of insurance in the amount of $100,000 per person, $300,000 per accident for Bodily Injury liability, and $50,000 Property Damage liability. Verification of the higher limits for bodily injury and property damage must be provided by submitting a FR-44 from their insurance carrier.
Auto Coverage - Borrowed/Loaned Vehicle
Most personal automobile insurance policies will cover an insured who operates a vehicle not owned by them. However, the vehicle owner's insurance will be primary and the driver's insurance will be excess. For this reason, if an individual borrows a vehicle, they are generally borrowing its insurance policy as well.
Be sure to read the policy or check with the agent to determine if liability coverage will transfer to a non-owned vehicle. Some policies only cover the vehicle listed in the policy.
Auto Coverage - Business Use Of Personal Auto
Personal automobile policies do not normally provide coverage if the vehicle is used for business.
Auto Coverage - Customized Equipment
Coverage for customized equipment is normally excluded by an automobile insurance policy , unless purchased through an additional coverage (endorsement ).
An endorsement is a specific amount of coverage separate from Comprehensive and Collision and subject to the same deductibles. However, any claim will still be settled on an actual cash value basis. The endorsement provides a buy-back only for what is basically excluded in the customizing equipment exclusion , not for property dealt with in other exclusions such as: special carpeting and insulation, furniture, bars, facilities for cooking and sleeping, height extending roofs, and custom murals, paintings, decals or graphics.
Auto Coverage - Leased Vehicle
A leased vehicle must be insured for Bodily Injury Liability limits of $100,000/$300,000 and Property Damage limit of $50,000, or $500,000 combined.
Auto Coverage Florida - Force Placed
A lienholder may require the insured to maintain comprehensive and collision insurance on the automobile financed. This is usually a condition of the loan. When a vehicle lacks coverage, the lender may "force place" or "add" coverage to the loan.
A "forced place" insurance policy only covers the lienholder's interest in the automobile. If the insured has an "at-fault" accident and the only coverage on the vehicle is the forced placed insurance policy added to the loan, it will not pay for liability. The premium for a force placed policy is normally much higher than a regular policy.
The financial institution must notify the borrower within 30 days of the purchase that 1) They have purchased the coverage and 2) that the borrower may avoid additional premium charges by providing their own policy within 30 days of the notice, and that any unearned premium will be returned, plus interest.
Auto Coverage - GAP
A GAP product (or “guaranteed asset protection” product), is defined in Section 520.02(7), Florida Statutes, as “a loan, lease, or retail installment contract term, or modification or addendum to a loan, lease, or retail installment contract, under which a creditor agrees to waive a customer's liability for payment of some or all of the amount by which the debt exceeds the value of the collateral. Such a product is not insurance for purposes of the Florida Insurance Code.”
A GAP product is not a contract between an insurer/insured, so it is not regulated under the Florida Insurance Code. However, there is a “GAP-like” product that is a contract between the insurer/insured that would cover the difference between the amount owed and the actual cash value of the car if there is a total loss. This GAP-like product is subject to the insurance code. It is not GAP because it does not meet the definition of GAP under Florida Statutes. Some insurance rating plans may refer to it as GAP (especially those that were approved prior to the enactment of HB 343 during the 2008 session), but it is not GAP – which is where I think the confusion is coming in. In addition, HB 343 added a new line of insurance called “debt cancellation insurance” that allowed an insurer to provide coverage to banks and other entities against losses resulting from the writing of debt cancellation or debt suspension agreements (of which GAP would be one).
The “GAP-like” product is typically provided via an endorsement to an auto policy as an optional coverage that the insured may purchase. When it is added to the auto policy (or any other policy for that matter), it falls under the rating “jurisdiction” (for lack of a better word) of the policy that it is attaching to. In other words, the GAP-like product which is added to a personal auto policy is included as an optional coverage under the personal auto program and the forms and rates are filed under the personal auto line of business. The amount for this coverage is minimal - generally under $25.
Auto Coverage - Required
Currently, Florida law requires you carry $10,000 of Personal Injury Protection (PIP) $10,000 in Property Damage (PD) This coverage is required in order to purchase a tag.
However, everyone should be aware of the Financial Responsibility Law in Florida. This law comes in to play after an accident or after the receipt of certain traffic violations. Normally, the best way to make sure you comply with this law is to purchase Bodily Injury coverage on your auto policy . The minimum limit of Bodily Injury Liability coverage is $10,000.
Auto Coverage - Property Damage Liability
Property Damage Liability (PD) pays for damages that an insured would be legally liable for resulting in the physical damage to, or destruction of, tangible property of another, including loss of use. The negligent act must be the result of an activity or operation of the insured covered by the policy . If the insured is sued, the insurance company will provide legal representation.
All policies issued with personal injury protection must also provide property damage liability for at least $10,000 limit per accident, or bodily injury and property damage liability with a combined single limit of $30,000 per accident.
Auto Coverage - Non-Stacked Uninsured Motorist
An insured can elect "not" to have their Uninsured/Underinsured (UM) Coverage limits added together (non-stacked) by signing a non-stacked Uninsured/Underinsured Motorist form, pursuant to Florida Statute
Auto Coverage - Non-Stacked vs. Stacked
The "non-stacked" form of uninsured/underinsured motorist (UM) coverage has an exclusion stating that the insured cannot collect UM while occupying a vehicle owned by the insured, but not insured for UM under the policy .
In the stacked form, there is no exclusion saying the insured cannot collect UM in a vehicle owned but not insured. In the stacked form, an insured could own 3 vehicles and insure only one of them for UM and still collect while in any of the vehicles.
Auto Coverage - Stacked Uninsured Motorist
Florida law requires that a company add together, or "stack" uninsured/ underinsured (UM) coverage for multiple vehicles, unless otherwise rejected in writing. For example, an insured has three vehicles, and each has a UM limit of 50/100 ($50,000 per person/$100,000 per accident). This means they have up to $150,000 per person/$300,000 per accident available for a claim
Auto Coverage - Stated Value
Instead of straight "actual cash value" coverage , there is an endorsement that allows for specific limits. This is also known as a "stated value" policy . These limits can apply to a policy including only Comprehensive Coverage or a policy that includes both Comprehensive and Collision Coverage . The most the company will pay in the event of a loss is still the actual cash value or the cost to repair, up to the "stated amount."