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Florida Auto Insurance Collision Explained

Florida Auto Insurance Collision Explained - KMW

Collision insurance is an option of auto insurance coverage that helps to pay for your car repair if your car is damaged due to an accident with any other vehicle or object.

If you are financing your car or leasing it, collision coverage is usually required by the lender. It is optional coverage on your car insurance policy. In Florida, collision coverage is not required by law.

This insurance helps you to repair or replace your car in case of damage that includes an auto accident that occurred with another vehicle, an accident by colliding with any other object including a tree or a fence, or a car accident involving rolling and falling.

It is important to note that collision insurance does not pay in case of damage done to a vehicle that does not have to do with driving, damage to another’s vehicle, and medical bills.

What do I need to know when it comes to purchasing collision coverage?

When it comes to buying auto insurance, there are so many options available for insurance that it can create confusion for people who are not aware of the details in the policy. There are two main things when it comes to buying an insurance policy.

First, it is important to have an understanding of how different insurance coverages work. Second, you need to understand that each auto insurance policy is personalized to your situation and needs.

The common mistake people make when purchasing auto insurance is focusing solely on finding the cheapest coverage. Of course, cost is a factor, but you need to understand what you are buying—and not buying—before you make that decision.

There are different types of options on auto insurance policies and collision insurance is one such option.

What is the difference between collision and comprehensive insurance?

Many Floridians consider collision and comprehensive insurance the same, however, they both are different and distinct from each other.

Comprehension insurance covers damage to your car that is not the result of a car accident such as vandalism and theft.

Collision insurance pays for full expenses for damage to your vehicle if the vehicle is involved in an accident with another vehicle or object regardless of who was at fault for the accident.

It does not matter whether the other driver has an insurance policy or not, collision coverage pays the expenses of your car repairs.

Many drivers and owners of the vehicle are unaware of this policy in Florida, so you should consider this insurance for the financial protection of your vehicle.

You should review your insurance coverage to see not only whether you have collision coverage, but whether you have the right amount of coverage. Speak to a knowledgeable insurance attorney at KMW or your local insurance agent.

Is collision on every auto insurance policy?

This is the question that comes to the mind of a lot of people after they’ve been involved in a car accident. The answer to this question is no. Collision insurance is not on every auto insurance policy. In Florida, the law does not require that motorists have collision coverage on their auto insurance.

It is also important to note that collision insurance is a bit more costly than comprehensive insurance. Because of this, motorists often decline this coverage without fully understanding what coverage they are declining.

What does collision coverage cover?

Collision coverage pays for the damage done to your car due to a collision with any other vehicle. It also covers car repairs if the car is damaged in a collision with an object like a street sign, guardrail, or tree.

Collision coverage is frequently required by the lender if you are financing or leasing your car. Once the lender is paid off or the lease is bought, collision insurance becomes an optional coverage on your auto insurance policy. The lenders or leaseholders often require this form of insurance so that the asset (the vehicle) is financially protected.

It makes no difference whether the other driver has insurance or not; you will be reimbursed for the repair costs. Many drivers and car owners in Florida are unaware of this policy coverage, this is why it is important to guide the people of Florida about this insurance policy.

Do I really need collision coverage? Why is it important to have?

Life is unpredictable, and as the saying goes, life happens. It is important to keep this in mind when trying to plan for an unexpected situation. Collision coverage is crucial for you if you own a car because your vehicle may be hit by another car, and the car you rely on to get to work, the store, and to survive may be undrivable.

In some situations, the damage is quite expensive, that’s where the need for collision coverage arises so that the expenses of the damage will be paid for by the collision insurance policy.

People often mistakenly believe that if another car caused the accident, then they will be responsible for your car’s damage. Unfortunately, far too many drivers on the road do not have insurance or our underinsured leaving the car accident victim to pay for the damages out of their own pocket.

A recent study indicated that 20.4% of drivers in Florida were uninsured. This means that there is a 1 in 5 chance that the next accident you are in will be with an uninsured driver. This statistic does not consider the percentage of drivers that are underinsured and have minimal coverage.

Another example of when collision coverage is needed is when a person causes a car accident and leaves the scene. If the accident occurred quickly and no witnesses were able to obtain the vehicle tag, then you will be unable to recover the cost to repair the damages from the at-fault party. To save yourself from this heartache and expenses, it is important to have collision coverage on your vehicle.

What does collision not cover?

Collision will cover damage to a vehicle that is the result of, as the name suggests, a collision. It does not cover damage to the vehicle from non-collision causes. Examples of this include theft, vandalism, or hail.

It is also important to note that collision will not cover damage caused to the other vehicle or object involved in the auto accident.

Additionally, it will not cover any medical bills.

Learn more: How are my medical bills paid after a car accident?

Is there a deductible with collision coverage?

This is another important aspect regarding collision coverage, and the answer to this question is “yes”. Collision coverage has a deductible.

This is the amount that needs to be paid by you before the policy will take over. You are given the freedom to choose the amount for your collision deductible when you buy the collision coverage. You can have many options to select an amount for deductible, and this also depends on the insurer. Collision deductible can be as low as $100 to $200. However, most of the insurers recommend starting with $500 and increasing later if one can afford it.

Collision Coverage Can Be Very Helpful if you are in a Car Accident

Collision coverage can be quite beneficial for you. Do not wait until after you are involved in an auto accident to find out whether you have the appropriate insurance. Contact an insurance attorney to make sure that you have the right coverage so that you and your family are protected.

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