What’s Actually In Your Policy? Most Drivers Don’t Know

Your Guide To Understanding Your Coverage And Protecting What Matters

For Drivers in Miami-Dade, Broward, & Palm Beach Counties

Why Understanding Your Auto Insurance Matters

At Las Margaritas Insurance, we believe confident drivers are informed drivers. That means understanding what your auto policy actually covers and what it doesn’t before you ever have to file a claim.

This guide was designed to help you review your coverage, make smarter decisions, and feel more secure behind the wheel without the jargon, confusion, or sales pressure.

Understanding The Basics Of Your Auto Policy

Auto insurance in Florida includes several key coverages. Here’s what they mean:

Bodily Injury Liability (BI):
Covers injuries you cause to others in an accident where you’re at fault.
Property Damage Liability (PD):
Pays for damage you cause to someone else’s property, like another vehicle or structure.
Personal Injury Protection (PIP):
Required by Florida law. PIP covers you (the named insured) and your passengers for medical expenses, a portion of lost wages, and other related costs regardless of who caused the accident.
Uninsured/Underinsured Motorist (UM/UIM):
Protects you if you’re injured by a driver who has no insurance, insufficient coverage, or leaves the scene (hit-and-run). Without it, you could be paying out-of-pocket for medical care even if it wasn’t your fault.
Comprehensive Coverage:
Covers damage not caused by a collision, such as theft, fire, flood, falling objects, or vandalism.
Collision Coverage:
Pays to repair or replace your vehicle after a crash, regardless of who’s at fault
Medical Payments (MedPay):
Optional coverage to help pay medical bills beyond what PIP covers.
Rental Reimbursement:
Covers the cost of a rental car while your vehicle is being repaired after a covered loss
Towing and Roadside Assistance:
Covers emergency help like towing, battery jump-starts, flat tires, or lockouts

Florida’s Minimum Coverage And Why It’s Not Always Enough

Florida law requires drivers to carry:

$10,000 per person / $20,000 per accident in Bodily Injury Liability
$10,000 in Property Damage Liability
$10,000 in Personal Injury Protection (PIP)

While these amounts satisfy legal requirements, they may not fully protect you in a serious accident. Hospital bills, multiple-car damage, or lawsuits can easily exceed these minimums.

Reviewing your limits and understanding what they mean can help you avoid major financial risk.

The Most Common Auto Insurance Questions (And What You Should Know)

“Why is my Florida auto insurance so expensive?”
Florida has some of the highest auto insurance premiums in the country due to high accident rates and rising repair costs. On top of that, where you live matters – areas with more traffic congestion, higher crime rates, or greater claim activity tend to have higher premiums. Reviewing your policy, available discounts, and deductible structure can help reduce your costs.
“What happens if someone hits me and runs?”
If you carry Uninsured/Underinsured Motorist coverage, you’re protected. Without it, you may be responsible for your own medical and repair bills even if the other driver is never found.
“Do I really need Comprehensive and Collision?”
If your car is financed or newer, these coverages are likely required. If it’s older or paid off, they may be optional but you’ll want to consider your ability to replace the car out-of-pocket after an accident.
“Is the state minimum enough to keep me protected?”
It meets legal requirements, but often falls short in real-world situations. Higher limits offer better protection and often cost less than people expect.
“What does PIP actually cover?”
PIP pays for your medical expenses, lost wages, and some additional benefits after an accident. It covers you and your passengers, no matter who’s at fault but it does have limits.
“Where do I see what coverage I actually have?”
Your Declarations Page is the summary of your policy – it shows your coverages, deductibles, and limits all in one place. If you’re not sure how to read it, ask for help before renewing or making changes.

Meet Las Margaritas Insurance

We’re a locally owned, family-run insurance agency with one mission: to help South Florida drivers make confident, informed decisions about protecting their vehicles and loved ones.

We understand how confusing Florida’s insurance landscape can be, from rising premiums to gaps in coverage, and we’re here to simplify the process. Our approach is personal, bilingual, and focused on education, so you always feel confident about the protection you’re paying for.

We believe that an insured driver is an empowered driver!

Ready For Personal Guidance?

At Las Margaritas Insurance, we’re proud to help local families better understand their auto coverage, explore smart options, and avoid common pitfalls.

If you have questions after reviewing this guide or want a fresh look at your current policy, we’re here to help.

Free Policy Reviews
Clear, Honest Advice
Personalized Coverage Options

Reach out anytime to speak with one of our licensed agents:

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