By Steve Walden, Attorney at Law
Understanding Florida Auto Insurance Coverage – Property Damage
Like many of you, I lost vehicles due to hurricanes Helene and Milton and recently had to replace them. When I purchased a new car, I had to select the insurance coverages I would need to cover property damage. Since I discussed insurance to cover personal injuries and medical expenses in a prior issue, I am going to focus exclusively on property damage in this article.
Property Damage coverage is a mandatory insurance in Florida. This coverage is for damage to the property of others due to the operation of your vehicle. This could be damage to another car or trailer, a home, or some other structure. The state minimum coverage is $10,000, but you can increase the coverage depending upon your specific needs. Your insurance company will pay another person under this coverage if you are at fault for a collision, up to the maxium amount of your coverage. It also covers property damage if someone else is driving your car with permission.
Comprehensive Coverage pays for damage to your vehicle caused by events other than a collision. Comprehensive coverage is not mandatory but may be required by a finance company if you are either leasing or financing a vehicle.
This is the coverage that I used when I made the claim for the loss of my car due to flooding from the hurricane. This coverage will pay for repairs to a vehicle, up to the amount of the car’s value. If the repairs will exceed the vehicle’s value, the insurance company may deem the damage as a ‘total loss’ and pay the value of your car, minus any applicable deductible.
A deductible is an amount you select when purchasing your auto insurance coverage. This is an amount that you agree to pay toward the repair of damages, or toward your total loss of your vehicle, prior to your insurance company’s payout. Typically, selecting a higher deductible amount will equate to a lower insurance premium.
Collision Coverage is another ‘discretionary’ coverage that will pay for damage to your vehicle in the event that it is damaged in a collision. Collision means any event that causes damage to a car, which is from the operation of a vehicle. For example, this can be from a car wreck at an intersection or driving into a concrete barrier. Collision insurance will pay for these damages regardless of which driver is at fault. Again, this coverage will pay for damage to your vehicle, up to the value of the vehicle, minus the deductible.
When you are involved in a car wreck and another driver is a fault, you have the option of either using the other driver’s Property Damage coverage, or your own Collision coverage. I will often recommend to my clients that they use their own insurance when the other driver is not cooperating with his or her insurance company’s investigation, or if the other insurance company is delaying the inspection or offer to repair the vehicle. When you use your own insurance, even if the other person is at fault, your insurance company will seek reimbursement from the at-fault party for what it pays out, referred to as subrogation.
When purchasing an insurance policy, it is important to consider more than just cost. It is important to anticipate the worst-case scenarios and plan for coverage that will either ensure your car is fully repaired or pay for a replacement vehicle if it is damaged or lost in a wreck or in a natural disaster. If you have questions about your current policy, or want advice on purchasing new coverage, you should consult with an attorney that handles auto accident claims.
Steve Walden, Attorney at Law
The Carlson Law Firm
333 3rd Ave. N, Suite 220