• "We Don't Get Paid Until You Do!"

    Left to Right: Michael Blank, Jose Fernandez, Erik Woody (Non-Lawyer Case Manager)

  • Critical Collision Coverage

    August 25, 2017
  • n Florida, the law requires every owner of a motor vehicle to purchase car insurance. There are many different types of coverage available to consumers, but only two are mandatory. The two you must have are: (1) personal injury protection coverage, otherwise known as PIP; and (2) property damage coverage, otherwise known as PD.
    In this blog, we will be explaining an optional coverage that we strongly suggest you purchase. The coverage is called collision. This coverage generally covers damages to the insured’s vehicle resulting from an accident or collision with any object. What does collision not cover? Ordinarily, it will not cover a personal injury or damage to other property.
    When someone is involved in a car accident one of their main concerns is fixing their motor vehicle. The reasons for wanting to have your car fixed are obvious and range from crucial (people need to get to and from work and to and from the doctor despite an inoperable vehicle) to remedial (a damage was done to your car and it needs to be fixed even if it is just a fender bender). Purchasing collision is one way—probably the most affordable way—of ensuring that your car will be fixed after an accident.
    To emphasize our point, let’s consider an example. Say you are involved in a car accident involving three cars. You were stopped at a red light and your vehicle was impacted from the rear. When you step out of your vehicle you notice that the car that impacted your car was also impacted from the rear by another car. You are insured with Friendly Insurance Company, LLC. Suzy Smith, the driver of the car directly behind you has Wonderful Insurance Company.  The third car, driven by Bill Baddriver, is insured with Amazing Insurance, Inc. At first you are relieved that the other two participants are insured, and you are comforted by the fact that the insurance companies are well known entities.
     All proper steps are taken, and all claims are reported to the respective insurance companies. Smith says that her car was pushed into yours by the momentum from Billy Baddriver’s impact. Baddriver disagrees completely and says that he crashed into Smith after she crashed into you, and that the crash between Smith’s car and yours is what caused his crash. You do not remember the facts clearly because you hurt your head. However, you do need your automobile fixed immediately.
    Wonderful Insurance Company is refusing to pay for the repairs for your vehicle because Suzy says she was not responsible. Similarly, Amazing Insurance, Inc. is willing to pay for only half of the damage to your vehicle due to Billy Baddriver’s version of the event. Your vehicle is inoperable, the damage to your vehicle is $10,000, and the two insurance companies combined are only willing to cover $5,000. Therefore—to promptly repair your vehicle—you will have to pay the remaining $5,000 balance.
    This type of thing happens every day. In our hypothetical situation your insurance would step in and cover 100% of the damage to the vehicle except your deductible, if any. Often times, your insurance company will make a claim for subrogation or reimbursement anyway. Assuming your insurance company is successful in getting their money back, your deductible should be returned to you as well. Florida law considers collision coverage optional; we consider it necessary because it may help you avoid a financial catastrophe.