What is Car Insurance and Why Have it?
The law requires that all registered vehicles must have car insurance.
What is Insurance?
Florida, US – The insurance is simply a contract between the insured (you) and the insurer (the insurance company). This contract protects you from potential future losses, as long as you make the periodic payments to the insurer. If something happens and the incident is covered by the insurance, you pay for part of the restoration (the deductible) and the insurance company covers the rest. The compensation paid by the insurance company is called a premium.
Why have insurance?
Just by being in a car you are at risk, even if you are not moving. Some of the risks can be avoidable or reduced, such as driving safely, staying focused, being alert and so on. Other risks can’t be avoided, such as the actions of other drivers, atmospheric conditions, wildlife and many more. In order to ease the costs of unavoidable risks, a car insurance is required.
Florida’s No-Fault Law requires every owner of a Florida registered vehicle to have a vehicle insurance with minimum coverage of $10,000 Personal Injury Protection (PIP) and a minimum coverage of $10,000 Property Damage Liability (PDL). Through the registration period, the proof of insurance must be maintained. It is also required at the time of registration.
When driving, it is recommended to have the proof of valid Florida motorized vehicle insurance at hand, because law enforcement officers may need to verify it or/and you may need it in case of an unfortunate event (crash). If you do not have a valid Florida insurance for motorized vehicles, you should purchase one as soon as possible.
Depending on the amount of money you are willing to commit, there are various levels of insurance and coverage.
Always take your time to read and fully understand the policy, the premium payout, coverage, conditions, limitations, features of the insurance policy you purchased. In case there is something you do not understand, you should call the insurance company for clarification, as you may be financially responsible for any damages not covered by the policy. You are the one responsible for what your car insurance covers and you must make sure you have at least the minimum insurance required by law (PIP/PDL).
Ignoring the law, it will cost you. It will cost you in case of an accident because if it is your fault you will have to pay the expenses from your own pocket and it will cost you your driving licence. Owning or operating a vehicle without insurance, your licence or/and registration can be suspended. At the same time you could also be required to purchase higher insurance coverage and maintain it for up to three years. Or you can even face court judgements.
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