What Type of Insurance Do I Need

Welcome to the Reliance Insurance blog! Here you can find information about insurance and everything you need to know about getting the coverage you need in Jacksonville. Insurance can seem confusing and, in many cases, too expensive. However, Reliance Insurance is here to take the confusion out of finding coverage — we offer cheap car insurance that will keep you protected when you’re behind the wheel. 

Keep reading our blog to learn about the various types of insurance available to you and visit our website to talk to an agent of Reliance Insurance. We would love to help you find cheap car insurance that will give you the protection you need. 

What Type of Coverage Do I Need?

In Florida, you are required to have car insurance before you get behind the wheel. The requirements for basic insurance coverage include: 

  • Property Damage Coverage - You must carry $10,000 worth to pay if the accident is your fault and you have to pay for the other person’s vehicle. This coverage will not pay for any costs associated with your vehicle.
  • Personal Injury Protection (PIP) - You must have $10,000 worth of coverage to pay for your medical bills and lost wages due to your injuries. Your insurance will be required to pay 80% of your medical bills and 60% of lost wages up to the $10,000 amount — Florida is a no-fault state.

This the minimum insurance that you need in Florida. However, many find that they need more coverage depending on their car, loan situation, and other factors.

Five Types of Insurance Available

The coverage that you need differs from person to person and as a result, there are a lot of different types of insurance available. With all these options, how do you know what you need? Watch this short and read our blog to learn more! 

Collision Insurance 

When you have minimum coverage, you are not covered when it comes to the costs of repairing or replacing your vehicle: you may have to pay out of pocket for this expense. This coverage comes in handy when the damage to your car is more than $10,000, the other driver who is at fault has no insurance coverage (not even the minimum!), or when you caused the accident.

GAP Insurance

Is the car you are driving worth less than what you owe on your loan? If this is true, then you will want to get gap insurance. This often happens when you pay very little towards your car when you first purchase it and you are using a loan to pay for nearly the entire cost. This keeps you covered if your car is totaled. 

Extended Personal Injury Protection

Extended Personal Injury Protection pays for whatever PIP doesn’t pay for — which can be quite a lot as a trip in an ambulance or ER can quickly exceed the $10,000 minimum. This type of insurance can also help to cover costs if you are seriously injured and are still waiting for your case to be tried or settled. 

Medical Payment Coverage

Medical payment coverage can also help to cover whatever PIP doesn’t cover. Because you will be responsible for 20% of your medical expenses with PIP, this can help you pay for your portion of the cost.

Bodily Injury Liability

Even if you are a good driver, we all make mistakes, and an accident can easily be our fault. In the case that you cause a major accident resulting in serious injury to another person, you may want to have bodily injury liability insurance. This will protect your personal assets from being seized to help cover costs. Additionally, this type of coverage is often required to purchase other add-on coverage or stack the coverage of your policy.  

Uninsured/Underinsured Motorist Coverage

Because there are some in Florida who choose to take the chance and not carry insurance, you may be in an accident with an uninsured driver. If this is the case or the at-fault party doesn’t carry enough insurance to pay the full cost of your accident, your insurance can pay for the expenses. This allows you to rest assured that no matter what, you are covered. 

What types of overage do you need? Are you driving with less coverage than you need because you can’t afford it? Visit the Reliance Insurance website to learn how we can help you find cheap car insurance in Jacksonville that will have you covered no matter what. Visit our website today!

Insurance terms: 

Insurance Terms Dictionary Agent: In insurance, the person authorized to represent the insurer in negotiating, servicing, or effecting insurance policies. Applicant: The party applying for an insurance policy. Application: A printed form developed by an insurer that includes questions about the prospective insured and the desired insurance coverage and limits. Auto Collision Coverage: Optional auto insurance which pays for damage to your car caused by collision with another car or object, or by rolling the car over. Frequently required if you have a car loan. Auto Comprehensive Physical Damage Coverage: Optional auto insurance which pays for damage to your auto caused by things other than collision or rolling the car over, such as fire, theft, vandalism, flood or hail. Frequently required if you have a car loan. Bodily Injury Liability Coverage: Pays when an insured person is legally liable for bodily injury or death caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for your legal defense if you are sued. Claim: A person's request for payment from an insurer for a loss covered by the insurance policy. Collision Coverage: Pays for loss to your covered vehicle when it collides with another object or overturns. We will also pay for a collision loss to any non-owned vehicle, or to a vehicle you have rented other than a vehicle rented for use in connection with your business or employment, while that vehicle is in your custody, or while you are operating it. Comprehensive Coverage: Pays for loss or damage to your covered vehicle caused by any event other than collision. This includes damages due to events such as fire, theft, windstorm, flood, and vandalism. We will also pay transportation and loss of use expenses under this coverage if your motor vehicle is stolen. Conditions: The part of your insurance policy that states the obligations of the person insured and those of the insurance company. Continuously Insured: Insurance coverage was in effect from an insurer or more than one insurer at all times, without a break or lapse in coverage for any reason. Contract: A legally enforceable agreement between two or more parties. Declarations Page: The report from your insurance company listing: the types of coverage you have elected; the limit for each coverage; the cost for each coverage; the specified vehicles covered by the policy; the types of coverage for each vehicle covered by the policy; and other information applicable to the policy. Deductibles: The portion of the loss that the policyholder agrees to pay out of pocket, before the insurance company pays the amount they are obligated to cover. For example, if the covered claim is $1000 and your deductible is $250, you pay $250 and your company will pay $750. Deductibles help to keep insurance rates reasonable. Raising the amount of the deductible lowers the cost of insurance. Depreciation: Reduction in the value of property due to age and use. Endorsement: Attachment or addendum to an insurance policy; an endorsement changes the contract's original terms. Garaging Location: The ZIP code where your vehicle is parked when not in use and usually corresponds to your primary residence. Insurance Company: An organization that has been chartered by a governmental entity to transact the business of insurance. Insured: The person whose insurable interest is protected under an insurance policy. Insurer: See Insurance Company. Lapse: Termination of a policy due to nonpayment of premiums. Liability: A legal obligation to compensate a person harmed by another's acts or omissions. Liability Coverage: Insurance that provides compensation for a harm or wrong to a third party for which an insured is legally obligated to pay. Life Insurance: Insurance that pays a specified sum of money to designated beneficiaries if the insured person dies during the policy term. Limits: The most we will pay for a specific insurance coverage. You may choose the limit which meets your needs. Most states have laws that specify the minimum limits you must purchase. Loss: A claim either paid or payable due to the insurer's policy obligations. Medical Payments Coverage: Medical and funeral expense coverage for bodily injuries sustained from or while occupying an insured vehicle, regardless of the insured's negligence. Named Insured: The first person in whose name the insurance policy is issued. Negligence: Failure to use a generally acceptable level of care and caution. No-fault Insurance: A system of compensation enacted by law in many states under which indemnification is made by the insured's own insurance company regardless of who is at fault. Details of this system vary significantly from state to state. Occasional Driver: The person who is not the primary or principal driver of the vehicle. Peril: The cause of loss or damage. Personal Property Insurance: Protects against the loss of, or damage to property other than real property (real estate) caused by specific perils. Policy Expiration Date: The date when your current insurance policy expires. This date can be found on your current policy, Declaration (or "DEC") page, insurance identification card or recent cancellation notice. This date is not to be confused with the date of your next payment or when your renewal payment is due. Policy Term: The length of time that the policy is in force. Usually 6 months or a year. Primary Residence: The place where you will reside for the majority of your policy term. If you are a homeowner who does not reside in the home you own, please choose the "rent" or "other" option. Primary Use: What your vehicle is mainly used for: To/From Work If you use your vehicle to commute to and from your work and/or school. Business If your vehicle is used for one or all of the following: used to make sales calls used as vehicle for business trips to bank or post office, picking up supplies, going to different locations owned or leased by a partnership or corporation that have a business listed as and additional interest on the car Farm If your vehicle is used primarily on a farm, ranch or orchard Pleasure No others apply Policy: The written forms that make up the insurance contract between an insured and insurer. A policy includes the terms and conditions of the coverage, the perils insured or excluded, etc. Policy Declarations: The part of the insurance contract that lists basic underwriting information, including the insured's name, address and description of insured locations as well as policy limits. Policy Limits: The maximum amount an insured may collect or for which an insured is protected, under the terms of the policy. Policyholder: The person who buys insurance. Policyowner: An individual with an ownership interest in an insurance policy. Policy Period: The amount of time an insurance contract or policy lasts. Premium: The price for insurance coverage as described in the insurance policy for a specific period of time. Principal Driver: The person who drives the car most often. Proof of Loss: A sworn statement that usually must be furnished by the insured to an insurer before any loss under a policy may be paid. Property Damage Liability Coverage: Pays when an insured person is legally liable for damage to the property of others caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for your legal defense costs if you are sued. Reimbursement: The payment of an amount of money by an insurance policy for a covered loss that was initially paid by the insured or a third party. Reinstatement: The process by which a insurance company puts back in force a policy that has lapsed or has been canceled for nonpayment of premium. Riders: An addition to an insurance policy that becomes a part of the contract. Risk: The possibility or chance of loss or injury. Second Named Insured: The named insured or listed agent on a policy may request to designate any other person listed on the policy as a "second named insured". The second named insured has the same coverage under the policy as the named insured. Settlement: An agreement between a claimant to an insurance policy and the insurance company regarding the amount and method of a claim or benefit payment. Theft Limit (or Inside Policy Limits): The highest amount an insurance company will pay on certain items of personal property. For instance, some policies have a $5,000 limit for computers. Underwriting: The process of reviewing applications for coverage. Applications that are accepted are then classified by the underwriter according to the type and degree of risk. Uninsured Motorist Coverage: Coverage that pays for covered damage for bodily injury that an uninsured motorist is legally liable but unable to pay. VIN: The vehicle identification number (VIN) on your vehicle. This number is usually found on the dashboard of your vehicle on the driver's side, and is usually listed on the vehicle registration and title. The VIN number is a combination of letters and numbers 17 characters in length that can be used to identify the make, model, and year of your car.