Auto Insurance in Florida Key Terms

Learn more about key terms for Florida auto insurance

Auto insurance in Florida includes insurance for cars, trucks and other vehicles. Its primary purpose is to provide compensation for losses and liability due to accidents. Drivers in Florida must have auto insurance that consists of a minimum of $10,000 in personal injury protection, $10,000 property damage liability and $10,000 in bodily injury liability. Liability insurance generally covers claims against the policyholder and other drivers who do not live at the same address as the policyholder. Drivers who live at the same address as the policyholder usually must be specifically included on the policy.

 

General damages

General damages are awarded for losses that cannot be easily measured with a dollar amount, and are commonly referred to as damages for "pain and suffering." Coverage for general damages is optional in Florida.
Try: Auto Insurance Savings provides a list of the types of auto insurance coverage in Florida, including general damages from an uninsured driver.

Auto gap insurance

Auto gap insurance in Florida covers the value of the vehicle and the balance on its loan in the event of the total loss of the vehicle. Gap insurance in Florida is especially important with leased vehicles or those that have a large outstanding balance on the loan.
Try: The Florida Insurance Agency provides a discussion of gap insurance in Florida with respect to leasing.

Bodily injury liability insurance

Bodily injury liability insurance protects the insured party from liability (up to the policy limit) due to the injury of a third party. Florida does not normally require this type of insurance coverage, although it may require a minimum of $10,000 per person under certain circumstances.
Try: Car Insurance defines bodily injury liability insurance and provides the conditions under which it is required in Florida.

Deductible

A deductible in Florida is the amount that the policyholder pays before any costs are paid by the insurer. Most types of auto insurance in Florida have a deductible, although third-party liability insurance generally does not, since a third party usually will attempt to recover any damages.
Try: Bauknight Insurance has a glossary of auto insurance terms, including deductible.

Additional insured

The additional insured is a party who is protected by a Florida auto insurance policy, other than the policyholder.
Try: The Insurance Connection of South Florida defines additional insured and other terms.

Actual cash value (ACV)

The actual cash value, or ACV, of a vehicle in Florida is calculated by subtracting its depreciation from its purchase value.
Try: Esurance provides the specific coverage requirements for auto insurance in Florida with respect to the ACV of the vehicle.

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