types of auto insurance

Auto Insurance 101: Types of Coverage

When it comes to car insurance, the options can be overwhelming. From collision to liability coverage and everything in between, you want to make sure you’re adequately protected in the event of an accident. With the dizzying variety of choices out there, here are the main types of auto insurance coverage you should consider purchasing based on your needs.

Personal Injury Protection (PIP)

This coverage, also known as “no-fault” auto insurance, is the minimum mandatory required by the state of Florida for all drivers. Regardless of who was at fault, it covers your medical expenses, lost wages, and death benefits from the damage caused by an accident. PIP could also cover medical expenses for your passengers or household members.

Property Damage Liability (PDL)

Property damage liability covers the damage caused on another person’s property from an accident in which you are at fault. Whether it is a car or a house, this type of coverage covers a variety of out-of-pocket losses like repairs, lost value, and others. PDL is also part of the minimum required by the state of Florida.

Bodily Injury Liability

This type of auto insurance covers the medical bills of the other people involved in a car accident caused by you. Depending on the amount of coverage you acquired, bodily injury insurance can also cover fees originated by legal implications after causing the accident, and the amount paid per person injured is also affected by this number.

[IMPORTANT] Keep in mind that the liability types of insurance will protect you based on the amount of coverage you purchase for each case. The minimum required limit for the mandatory coverage could not be enough in some cases to cover the full costs. For example, if you cause $20,000 in property damage and you only have the $10,000 required PDL coverage, you could be responsible for the $10,000 difference. However, it is up to you to choose the amount of the coverage limit. A higher limit could give you peace of mind but it will also increase your premium.

Collision Insurance

If your vehicle gets damaged or destroyed in an accident, collision coverage will help you pay the costs of repair or replacement, regardless of who is at fault in the accident. This type of insurance protects you in any case of a driving-related collision accident with another car or object. It is not mandatory, but some lenders require collision coverage if you still own money or are leasing the vehicle.

Comprehensive Insurance

This type of coverage helps you pay for repairs or damage caused by something other than a collision. Typically covers theft, vandalism, natural disasters, falling objects, hail, flood, or animals. The state of Florida is well-known for hurricanes and heavy storms, that could present a threat to the integrity of your vehicle, so depending on where you park your car or how at-risk you are of hitting an animal on the road, you could consider adding this protection to your policy.


Choosing the right type of coverage could be confusing, but it all comes down to your specific situation and budget. We hope you found the answer you were looking for in this post and can clarify any doubts about the confusing world of auto insurance.

Owning a car is not a luxury it is a necessity. We know your car is a part of your everyday life, so we are here to help you find the right auto insurance policy for you and your family’s needs. Please, feel free to reach out to us if you have more questions. Our agents will be ready to assist you.

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