I was in an automobile accident.
The other person was at fault. What
should I do?
You have two options: You may file a
claim with the at- fault party's insurance
company if they are insured; or, if
you have collision insurance on your
vehicle, you can have your own insurance
company pay for the damages, less your
deductible, and they will usually subrogate
against the at-fault party to recover
their loss.
I was involved in an automobile
accident, and my car was totaled. My
company is not offering me a fair settlement
on my claim. What can I do?
Do your homework. Check the "blue book"
for the actual cash value (ACV) of your
car, check out the classified advertisements
in your local newspapers and check with
the car dealerships in your area. Look
for the prices of cars similar to yours
and submit them to your company, if
the prices are higher than the company's
offer. If they still fail to offer you
more money, you may invoke the appraisal
clause in your policy, request mediation
or consult an attorney to see if legal
action may be taken. Remember their
estimate must be based on the local
market.
I was involved in an automobile
accident, and the other party was at
fault. My insurance company does not
want to subrogate, including the amounts
due on my deductible or loss of use.
What can I do?
There is no requirement that your company
pursue subrogation. If the company does
subrogate, you may be responsible for
a portion of the expenses, regardless
of the outcome. If the company does
not plan to pursue subrogation, you
can usually file in small claims court
to recover the amounts owed. Or, you
may make a claim against the at fault
party's insurance policy for your out
of pocket expenses.
The person that hit my car does
not have any insurance coverage. What
do I do?
You can take the at-fault party to court.
If you obtain a judgment against the
owner of the car and they do not pay
the judgment, you should contact the
bureau of Financial Responsibility in
the Department of Highway Safety and
Motor Vehicles so they can take the
appropriate action against the owner
of the car.
I was involved in a car accident
and was not at fault. The officer gave
a ticket to the other individual. I
have contacted the other party's insurance
company, and it refuses to honor my
claim because its insured has not given
notice of the accident. Doesn't that
insurance company have an obligation
to pay my claim even if its insured
does not report the accident?
The company is obligated to pay what
the insured is legally liable for because
of an accident. A ticket by itself is
not evidence of 100% legal liability,
therefore, in many instances the company
may not have to pay for damages if their
insured does not report the accident
and cooperation in the investigation.
There are many factors taken into consideration
when evaluating liability claims. Each
situation is judged on its own merit.
I was in an accident caused by a
state-owned vehicle. How do I go about
resolving my claim?
You should contact the Division of Risk
Management, (850) 922-3120, ext. 1600,
which handles the insurance claims for
all state agencies.
I was a passenger in someone else's
car and received a citation for having
an alcoholic beverage in an open container.
Can my insurance company raise my rates,
or cancel, or non-renew my policy?
According to Florida Statute 316.1936,
a passenger of a vehicle is guilty of
a non-moving violation. If this is your
first citation of a nonmoving, non-criminal
violation, the company may not cancel,
non-renew or surcharge you. However,
if you change to another company, they
may consider this violation as a part
of the underwriting of your new policy,
and you may have to pay a higher premium.
I was involved in an automobile
accident, and the insurance company
has not yet inspected my vehicle or
authorized a rental vehicle. Isn't there
a time limit on how long an insurance
company can take?
At the present time, there is no Florida
Statute or Department Rule, which addresses
a time limit. However, seven to ten
working days should be ample time for
a company to inspect a damaged vehicle
and authorize a rental car. Rental may
not be covered unless it is approved
by the insurance company.
My car has been totaled. The insurance
company has made payment, but the amount
paid will not cover what I still owe
the financial institution. What is next?
Insurance companies are obligated to
pay in accordance with their policy
provisions, which is usually the actual
cash value of the vehicle at the time
of the loss. This amount does not always
cover the loan balance because you may
owe more than the vehicle is actually
worth. You would be responsible to pay
the difference to the financial institution.
If my auto repair is delayed while
waiting for parts or if the body shop
delays, is my auto rental extended?
If you feel you are entitled to rental,
check with your adjuster. The adjuster
approves or denies all these expenses.
The insurance company wants to repair
my car with non-factory parts. Can it
do this? Yes. The parts used do not
necessarily have to be original equipment
manufacturer (OEM) parts, but should
be of like kind and quality as the parts
being replaced. Ask your company about
what guarantees will be given on these
parts. Florida law requires the parts
to be of same fit, quality and performance.
Will I be penalized for choosing
my own body shop?
Normally, you have the right to choose
the auto repair shop you want. Note:
Some policies approved by Department
of Insurance require the insured to
take the vehicle to a designated repair
shop in exchange for a reduced premium.
The company cannot be required to pay
a higher price for the same necessary
repairs. When a company directs a vehicle
to be repaired by their facility, the
insurance company is responsible for
the quality of the repair.
What is the minimum amount of insurance
required by the State of Florida?
Any person who has a car in Florida
for more than 90 days during the preceding
365 days, resides in Florida, is employed
in Florida or has children in school
in Florida must purchase Personal Injury
Protection ($10,000) and Property Damage
Liability coverage ($10,000). In addition,
if the insured is involved in an accident,
the Financial Responsibility Law, regulated
by the Department of Highway Safety
and Motor Vehicles, also requires Bodily
Injury Liability coverage ($10,000 Bodily
Injury one person, $20,000 Bodily Injury
one accident, or $30,000 combined Bodily
Injury). What is Personal Injury Protection?
Personal Injury Protection (PIP) is
sometimes referred to as "no-fault"
insurance. It covers you and relatives
residing in your household for injuries
sustained in an automobile accident
regardless of who is at fault. This
coverage pay 80% of reasonable and necessary
medical bills, 60% of lost wages, and
includes a $5,000 death benefit, up
to a limit of $10,000.
Why do I have to carry PIP if I
already have health insurance?
Florida law requires every owner of
a motor vehicle required to be registered
in Florida carry PIP to protect themselves
in the event of injuries sustained in
an automobile accident. This coverage
is primary over any health insurance.
What is comparative negligence?
Comparative negligence is a legal principle
providing that the amount of a person's
negligence in an accident is determined
by his contribution to the accident.
In Florida, the percentage of the individual's
negligence in the accident is usually
subtracted from the amount he would
otherwise recover, if the other person
were 100% at fault.
Is insurance required on motorcycles?
There is no statutory requirement to
purchase insurance on motorcycles, except
when a driver has to prove financial
responsibility due to violations or
failure to pay for damages they caused
in an accident. Lenders may require
comprehensive and collision coverage
to protect their interest.
What expenses are covered under
Medical Payments coverage?
Medical Payments coverage pays for medical
expenses which are caused by injury
in an automobile accident. It covers
you and members of your family who live
with you regardless of who is at fault.
This coverage also applies if you are
in someone else's vehicle or if you
are a pedestrian, as long as the accident
occurs in Florida.
How long does an insurance company
have to settle an auto claim?
There is no specific time limit during
which the company must come to a settlement
agreement with an insured or a third
party claimant. However, once the person
and the company have agreed in writing
upon an amount, the company must pay
within 20 days or pay interest as provided
by Florida Statute 627.4265.
Can an insurance company refuse
to renew your policy based on the number
of accidents made in the last three
years?
An insurance company may non-renew your
policy if you have more than one at-fault
accident. If you have three or more
accidents, regardless of who is at fault,
the company may non-renew your policy.
Please note, a company may non-renew
for claims activity, regardless of accidents.
I have my car financed through the
bank. I could not afford comprehensive
and collision coverage. The bank secured
coverage on my vehicle without my consent.
Can it do this?
Yes, the bank has the right under their
installment loan agreement to protect
their interest. The loan agreement includes
a provision allowing the lending institution
to secure coverage and charge you for
it, if you fail to obtain the required
insurance. These charges are subject
to interest and the premiums will be
much higher than if you purchase insurance
yourself.
How long does it take for an insurance
company to issue an automobile insurance
policy?
You should receive your policy no later
than 60 days after the effective date.
How much notice does a company have
to give for cancellation of an auto
policy? For nonpayment of premium, 10
days. For any other reason, 45 days.
How long should it take to receive
a refund of premium after I cancel my
auto policy?
Florida Statute 627.7283 states that
the unearned premium must be returned
within 30 days of the company's receipt
of the written request for cancellation,
or the company must pay interest at
the rate of 8%. If a premium finance
company is involved, the company is
responsible to refund to the premium
finance company within 30 days.
Can an insurance company cancel
an automobile policy within the first
60 days of the effective date?
An insurance company is prohibited from
canceling only for nonpayment of premium
within the first 60 days, unless the
nonpayment is the result of a dishonored
check. Otherwise, the company's rights
to cancel are the same as allowed by
Florida Statute 627.728.
