Reading the Fine Print of Your Auto Insurance Policy
Michael Babboni
Insurance Coverage
To save money, many people choose to go with just basic auto insurance coverage. However, while that is certainly better than no coverage at all, having only basic or minimum coverage may not be enough to protect you if you are involved in an auto accident.Here is why reading the fine print of your auto insurance policy is so important.
Coverages and Minimum Requirements
In Florida, motorists are required to have two types of auto insurance. These are outlined in the Florida Motor Vehicle No-Fault Law statutes. In addition, everyone who registers a vehicle in the state must provide proof that they have personal injury protection (PIP) and property damage liability (PD) protection with a minimum limit of $10,000 for each.
However, a recent bill also passed in Florida by the Legislature saying that Florida drivers need to buy coverage for medical care at $25,000 per occupant and $50,000 per incident because a minimum of $10,000 isn't going to always cover it.
Reading the Fine Print
Now that we have the basics out of the way concerning auto insurance in Florida, we also have to mention that most insurance companies are aware that policyholders do not take the time to read all the fine print.
To know exactly what you are insured for, it is important to read the fine print on your policy. Unfortunately, many people just live on the hope that they have enough coverage for when needed.
However, some find it hard to read the fine print and have a hard time understanding it. You will find declaration pages filled with blocks of text regarding certain risks and perils that are often hard to understand.
To understand what you are paying for and what kind of coverage you have, call your insurance agent and have them explain everything they can in as much detail as they can, so you understand.
What Makes the Fine Print Hard to Understand?
insurance policies are written in a language that can take many people years to understand. An attorney who is well-versed in insurance policies and how they are formed can help you uncover what your policy is saying. In addition, every insurance company is required to lay out what is covered and what is not.
Never assume something is covered. Instead, read your policy, ask questions when you don't understand, and discuss any problems you have with your personal injury attorney, who is experienced with this kind of jargon.
The Truth
The truth is these policies are supposed to be made for readability and are supposed to be easy for the average person to read and decipher. Readability standards were set in the 1980s, and insurance companies have target readability of an 8th or 9th-grade level. However, even at this level, that doesn’t mean the policy will be necessarily easy to read and understand.
Some insurance companies are also required to submit their readability scores for their auto insurance policies to the state's insurance department when they come up with new policies.
Who Benefits?
So, who benefits from hard-to-read contracts and hard-to-understand fine print? Well, the insurance companies. When you take a claim to court, they evaluate the language in the policy to determine if something can be considered a covered loss or if it is excluded from coverage completely.
Since many policyholders don't understand what is covered, the insurance company makes money from this lack of awareness, and legal arguments deny coverage and claims.
To avoid getting lost in the legal jargon of your insurance policy after an accident, make sure to consult with an experienced personal injury attorney who knows how to decipher what is written and help you file a claim to receive the compensation you rightfully deserve.