Why Collision Insurance is So Important

This article was first published on November 5th, 2010. Some of the laws may have changed since this that date.

Hundreds of thousands of car accidents take place in Florida each year, many of which happen right here in Central Florida. As Orlando’s population expands, so too does the frequency of car crashes. Of the 388,032 accidents that took place in 2017, 30,999 occurred in Orange County.

The potential for loss after an Orlando car crash is staggering. From lost opportunities due to injuries, property damage, and loss of life, car accidents can be traumatic incidents. That is why the law requires motorists to carry minimum amounts of insurance coverage. In Florida, motorists must have coverage to protect themselves when they get hurt or when they do damage to another’s vehicle. Drivers must turn to their own policies regardless of who was at fault so that they may get the compensation they need quickly.

Florida PIP and PDL Insurance Requirements

Florida drivers must carry personal injury protection (PIP) and property damage liability (PDL) coverage. Each motorist must carry a minimum of $10,000 for each type of coverage. When an accident happens, drivers must turn to their own policies to reap the benefits of their PIP and PDL coverage, regardless of who caused the crash.

While PIP covers medical costs and lost wages, PDL provides funds for the other driver’s car if it became damaged in the accident. Unfortunately, neither of these policies provide protection for the policyholder’s own vehicle, which is why the majority of responsible drivers opt to purchase additional collision coverage.

What is Collision Coverage?

Car crashes result in property damage all the time. At the very least, when a collision does not hurt a person physically or take a life, the exterior of the vehicles involved take a hit. Repairing vehicles is not cheap, which is why drivers have the option of buying additional collision coverage to cover damages to their own vehicles.

Neither PDL nor PIP will cover repairs if your vehicle becomes damaged in an accident. There are several scenarios in which it makes sense to have collision coverage in Florida:

  • Single-car accidents, like hitting a tree, curb, or pothole
  • Striking the car behind you when you back out of a parking space
  • Sustaining damage in a two-car accident

Collision coverage typically comes with a deductible. This means that the policyholder will have to pay a portion of the necessary repairs to his or her vehicle. This amount does not change when it’s time to fix your car, meaning that the deductible is a predictable expense you can budget for when balancing your checkbook.

Let’s take a look at how collision coverage can benefit you in the event of car crash:

Let’s say that you become involved in a car accident which results in $2,500 worth of property damage to your vehicle. With collision coverage, you may have a deductible of $500, meaning that you are responsible for the first $500 worth of repairs. Afterward, your insurer will cover the remaining $2,000.

Benefits of Collision Coverage

Collision coverage has several benefits, particularly for people with relatively expensive vehicles that may cost several thousands of dollars to repair after a minor accident. A person whose car is totaled can certainly benefit from collision coverage, considering that he may only receive $10,000 from the other driver if the other driver has the necessary PDL coverage.

The top reasons for purchasing collision coverage include:

  1. Collision coverage is often required by your lender or dealer if you are financing or leasing your vehicle.
  2. Collision coverage limits what you must pay for vehicle repairs to your deductible. This is a boon for those whose repairs exceed their deductible, which is common considering average repair costs exceed $2,000.
  3. Collision coverage is affordable coverage that provides drivers peace of mind.

At the Umansky Law Firm, we strive to protect the rights of accident victims in Orlando. Talk to our experienced car accident attorneys about your accident case to learn what your case may be worth, and what your options for compensation may be at this time. Call 407-238-3838 or visit us online for a free consultation at any time of day.