What Will Collision Insurance Cover in the Event of an Accident?

Advice from a Miami car accident lawyer. Accident with injuries happen every day in Florida. Most are minor. But serious accidents do happen resulting in personal injury and property damage. While this firm mostly handles injury lawsuits and claims from car accidents and other type of incidents, we do assist our injured clients with their car damage claims if we can. Of course, most car damage is handled between insurers for the respective vehicles, but we do often get asked questions about different types of property damage coverage. A common area of confusion is the nuance between property damage, collision and comprehensive coverages in an insurance policy.

Collision insurance is a common component of an auto insurance policy, designed to cover property damage to your vehicle when it collides with another car or object. If your vehicle is repairable post-accident, collision insurance will cover these costs minus your deductible. In cases where your car is totaled, collision insurance will typically pay out the actual cash value (ACV) of your vehicle before the accident, accounting for depreciation up to its limit.

However, collision insurance is not all encompassing and does not include damage to your vehicle outside of collisions with vehicles and objects. For example, it does not cover damage from vandalism, theft, or natural disasters like hurricanes or floods. That type of coverage is called comprehensive collision coverage. You need such coverage in order to be paid for those non driving type damages.

Collision vs. Comprehensive Property Damage

Which type of insurance is better to have collision or comprehensive? Well just how the word sounds, comprehensive coverage covers more than just collision damages from impacts with other vehicles and objects. It protects against losses from non-collision events, such as:

    • Theft or attempted theft
    • Vandalism
    • Damage from weather events, natural disasters, or hitting animals
    • Falling objects

Comprehensive insurance covers a wider array of damages not related to driving into something. Accordingly, in this personal injury law firm’s sage advice, it would be better to have comprehensive coverage because like its namesake says, it is comprehensive. It covers a lot more scenarios than that of collision damage.

Cost Comparison Comprehensive vs. Collision:

Both collision and comprehensive are optional in Florida but often required by lenders for financed or leased vehicles. Collision is generally pricier due to its focus on frequent collision events, influenced by:

    • Vehicle Type: More expensive cars raise collision premiums.
    • Deductible: Higher deductibles lower premiums.
    • Driving Record: A history of accidents increases costs.
    • Location: Areas with high accident or theft rates increase premiums.
  • Florida’s Unique Context: Given the risk of natural disasters, like flooding, windstorms, hail, and sinkholes, comprehensive is a better option than just mere collision.

What is Property Damage in Car Insurance?

Property Damage (PD) coverage under an auto insurance policy refers to the part of your liability insurance that covers damage to someone else’s property caused by you or someone driving your car with your permission. This coverage is essential for protecting you financially from the costs associated with accidents where you are at fault.

What Does Property Damage Coverage Typically Cover?

Property damage coverage is typically a separate coverage in an auto policy. It is different than collision and comprehensive coverage. The following are the key things typically covered under PD insurance:

  • Damage to Other Vehicles: If you’re involved in an accident where you hit another car, PD coverage will pay for the repairs to that vehicle. This includes both minor cosmetic damages and more significant structural repairs.
  • Damage to Fixed Objects: If you collide with stationary objects like fences, utility poles, buildings, or signs, your PD coverage will cover the cost to repair or replace these objects.
  • Damage to Property Other Than Vehicles: This can include damage to mailboxes, landscaping, or any other personal or public property that isn’t a motor vehicle. For instance, if you lose control of your car and drive into someone’s yard or garage, PD will cover the cost of fixing the damage.
  • Legal Costs: If you’re sued for property damage, your insurance might cover your defense costs, including legal fees, up to your policy limits. This can be critical if the property damage claim leads to a lawsuit.

Sample Language from Auto Insurance Policies:

To provide clarity on how insurance companies define these coverages, here are excerpts from State Farm’s policy definitions:

  • Collision Coverage: “We will pay for loss to your covered auto caused by collision with another object or by upset of your covered auto. Loss caused by the following is also considered collision: contact with a bird or animal, falling objects, or missiles. Deductible applies.”
  • Comprehensive Coverage: “We will pay for loss to your covered auto caused by events other than collision. This includes but is not limited to: fire, theft, vandalism, windstorm, hail, flood, falling objects, or contact with animals. A deductible applies.”

 

  • Property Damage Liability: “We will pay damages for which any insured person is legally liable because of property damage arising out of the ownership, maintenance or use of your covered auto. We will also pay reasonable expenses, including costs for bonds, loss of earnings, and defense costs we incur.”

These definitions highlight how insurers outline the scope of their coverage and to be sure they will hold you to the contract. They will not pay extra out of the kindness of their heart. PD coverage is about protecting you from financial liability for damage you cause to others and collision and comprehensive coverage protect your vehicle when it is damaged.

Why Property Damage Coverage Matters:

As other articles on perkinslawoffices.com discuss, Florida has mandatory minimum insurance requirements that vehicle owners must maintain in order to legally own and drive their vehicle. These limits are very low and injured victims of car accidents often cannot be compensated due to the fact Florida does not require dodily injury limits (BI). Property damage limits are however required, but the minimum amount is very low and has been for years. The law is outdated. The legal requirement in Florida is only $10,000. How many cars on the road costs only $10,000. It is ridiculous that the limits are so low and have not been changed. Without adequate coverage, you could be personally responsible for paying for substantial property damage out of pocket in theory.

Underinsured Drivers in Florida:

Florida has one of the highest rates of uninsured drivers at about 21% in 2019 according to the Insurance research counsel. This does not include “under insured motorists” which is probably the majority of Florida drivers. This is why additional coverage like UM/UIM critical to purchase for your peace of mind. Underinsured Drivers carry only the state minimums or just a little bit more, often insufficient for serious accidents. This is why that in addition to being adequately covered by your own auto insurance with high limits and UM coverage, you need a good personal injury car accident lawyer in the unfortunate event that you have a serious accident with injuries.

Attorney Alexander J. Perkins, with offices at 1728 Coral Way Suite 702 Miami, Florida and 6560 W. Rogers Circle, Suite 15 Boca Raton, Florida 33487 is rated among the best personal injury lawyers in Florida. He is the lead lawyer at Perkins Personal Injury Lawyers and has achieved millions of dollars for clients from insurance claims and lawsuits.

Go to perkinslawoffices.com and read testimonials from other clients or go to Google and see our reviews from happy clients. Hiring Perkins Personal Injury Lawyers is free. There are no upfront costs. We only get paid if we get you paid for your injury. If we don’t, you owe us nothing. What are you waiting for, call email or text us today. 305-741-5297 or email perkins@perkinslawoffices.com