Auto Insurance Review

We have all heard that “Knowledge is Power.”  However, it is what we do with the knowledge that results in power.  It’s more accurate to say “Applied Knowledge is Power.”  That truth should especially be applied to buying and reviewing your auto insurance.
Today, we are all looking for greater value. One great place to start is with auto insurance.  There is an increasing amount of very helpful information on the internet that can help you effectively review your auto insurance coverage.  The internet has also made it easier to quickly get the same coverage, or sometimes better coverage, for less money.

Here is our recommended 5 Step Process:

1. Read through the following information so that you know the major terms and definitions
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2. Pull out your auto policy and look for the “Declaration Page.”  Read through it taking note of the coverages you have compared to the list of coverage types below.
Every insurance policy is a separate contract between an insurance company and a customer.  When a new insurance contract is considered by the insurance underwriters and issued the first page of the policy is called the “Declarations” page. (Dec Page).
The declarations page is the first page of a new policy, with the other policy information such as conditions, exclusions, and endorsements attached.  If a policy is renewed and no changes have been made, the insurance company will generally issue a new declarations page that customers should file or attach to the original policy paperwork.  Every time a policy renews a new declarations page will be generated unless the customer has requested otherwise (for example, if the customer requests e-mails instead).

Declaration pages are important to review carefully.  Most of the vital information about the insurance contract policy will be listed on the declarations page.  Important underwriting information is also often listed on the “Dec page.”

3. Write down your driving record, past claims record, and all other related information that may be required to apply.  If you have any questions about what information is required, set up a meeting or phone conference with your insurance agent.  (If you have any additional questions you can call our office at 727 299-0449.)

4. Ask your agent how you can save money or get more value for what you are paying.  Ask how you can qualify for any of these common discounts:
 Anti Theft Discount
 Anti Lock Brake Discount
 Good Student Discount
 Senior Defensive Driver Discount
 Multi-Car Discount
 Multi-Policy Discount
 Professional Group Discount
 Electronic Funds Transfer
 Alternative Fuel Discount

5. If you want to realize even greater savings, skip the agent altogether and shop online.  Many services are available online where you can get free quotes and compare prices from several different insurers.

Auto Insurance Coverage’s - Considerations:

1. Bodily Injury (BI) - Protects you against financial loss when you are legally responsible for a car accident which causes death or injury to another individual. In addition, BI also covers you for legal costs involved in your defense for a covered suit including bail bond expenses and court costs. This coverage amount is a "Split Limit", such as $50,000/$100,000. The first number is the maximum limit provided for 1-injured person. The second number is the limit provided for two or more persons in any one accident or occurrence.
     Here are some common BI choices:
$50,000/$100,000
$100,000/$300,000
$250,000/$500,000

2. Property Damage Liability (PD) - Protects you against financial loss if you are found liable for damages to another person's property caused by your automobile.

3. Uninsured motorist coverage (UM) - This coverage pays for death or bodily injury caused by an uninsured driver. It can also cover a hit and run driver or cover an insured driver whose Bodily Injury Liability limits are not enough to cover the bodily injury losses incurred. UM covers you, your family members and other passengers in your vehicle.

4. Under-insured motorist coverage (UIM) - This coverage provides benefits for damages to your auto caused by an uninsured driver or an insured driver whose property damage liability limits are not enough to cover the property damage losses incurred.

5. Comprehensive Coverage (Other than Collision)- This coverage pays for your insured vehicle, up to the cash value, less the deductible amount as the result of damages caused by events. Events may include: fire, hail, windstorm, theft, glass breakage, riot, etc.

6. Collision Coverage - Collision coverage pays for physical damage to your vehicle caused by your vehicle colliding with an object, including another car or if it overturns.

7. Personal Injury Protection (PIP) – Florida requires PIP and it is similar to No Fault Insurance. PIP coverage typically includes expanded coverage of accident-related medical costs. In a number of states, PIP also pays for lost wages and similar losses. Considering how expensive medical treatments are these days,
8. Roadside Assist (Towing and Labor Coverages) - Provides coverage if your vehicle becomes disabled, for towing costs and/or labor performed at the place of disablement.

9. Rental Reimbursement (Optional Transportation) - This coverage allows you to rent a substitute if your car becomes disabled due to a covered loss. This coverage pays the cost of the rental car up to your policy limit.


Here are several useful links for Florida Insurance Carriers:

http://www.stateofflorida.com/Portal/DesktopDefault.aspx?tabid=20
http://www.flhsmv.gov/ddl/frfaqgen.html
http://www.autoinsguru.com/

Highlights of Florida's New PIP Insurance Laws for 2013

 House Bill 119 Motor Vehicle Personal Injury Protection (PIP) Insurance was signed into law by Florida Gov. Rick Scott last May. The law which has been described by industry observers as the most significant auto insurance law in years, seeks to clamp down on alleged abuse and fraud and improve the state's no-fault, personal injury protection (PIP) system.

The medical benefits provisions of the law will take effect on Jan. 1, 2013.  They include the requirement that accident victims report an auto-related injury and seek treatment within 14 days.  Under the new law, those physicians and facilities able to diagnose individuals seeking treatment under PIP medical benefits are:  licensed physicians, licensed osteopathic physicians, licensed chiropractic physicians, licensed dentists, hospitals, facilities that own are are owned by hospitals, or licensed emergency transportation or treatment providers.

The law also applies two coverage limits for PIP medical benefits, based on the severity of the individuals medical condition.  Policyholders could receive up to $10,000 in benefits for emergency medical care and $2,500 for other less serious injuries, Followup medical care must also be consistent with the underlying medical diagnosis rendered when the initial services and care were received.

In addition to the $10,000 in medical and disability benefits, $5.000 in death benefits is offered.  The death benefit was previously the lesser of the unused benefits, up to a limit of $5,000.  The increase goes into effect in January.  The PIP medical fee schedule revisions to help resolve alleged ambiguities in the schedule also take effect in January. Revisions include clarifying the reimbursement levels for care provided by ambulatory surgical centers and clinical laboratories.  Insurers will be required to include notice of the fee schedule in their policies.<sup>1


1</sup>Excerpt from Florida House Bill 119, Florida Senate.

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