One beneficial type of coverage which can be purchased in Florida is Bodily Injury Liability (BIL) which will pay for serious and permanent injury or death caused by the policyholder following a traffic accident. The insurer will compensate the other party up to the limits that the chose to purchase. The same benefits apply if the the insured causes the loss while they are driving someone else’s car or if another person is operating their automobile with permission. Another great benefit to this type of auto insurance coverage is that it will pay for legal defenses if the other party files a lawsuit which can be quite expensive to defend.

Comprehensive and collision is one type of coverage that many individuals must have; not by law, but because they are financing a vehicle. Financial institutions will often make it a part of the loan agreement to maintain protection for physical damage to the financed automobile until the auto is paid off. Although some individuals who own a vehicle free and clear may want to purchase this addition to a policy as well. A general rule of thumb is that if an auto is worth more than ten times what the premium may be it is beneficial to cover it in the event it is damaged; paying to repair or replace a vehicle can get quite expensive. Becoming properly insured comes down to evaluating a person’s situation and deciding what options will be best. A good resource to refer to help get a better understanding of policies is Florida’s automobile insurance consumer guide which is provided by Alex Sink, the state Chief Financial Officer.