Car Insurance Coverages & Challenges in the Wake of Florida's Hurricane
The hurricane seems to be a challenging time for all the residents of Florida. However, the locals of Florida are well aware of the state’s hurricane intensity and the aftermath. Most of the individuals in Florida might have insured their cars and homes that are most likely to be damaged due to these natural disasters.
“Hurricane season brings a humbling reminder that, despite our technologies, most of nature remains unpredictable.”- Diane Ackerman
There are certain individuals who are still finding it challenging to look for full coverage car insurance options. In this blog, we will understand full coverage car insurance, its benefits in hurricane-prone areas, the challenges of obtaining such insurance options, and all about cars with free insurance.
What is full coverage car insurance?
Full coverage insurance doesn’t have a fixed definition as the policies under this category vary. It includes collision, comprehensive, and liability coverage. Full coverage car insurance is mostly seen as a comprehensive shield against various risks including Hurricane damage.
Many Floridians face severe damage due to frequent hurricanes and hence opt for full coverage as it provides a sense of security. Let’s see the actual coverage options that fall under this category.
3 types of policies in full coverage car insurance include -
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This coverage helps pay for repairs or replacement of your vehicle after an accident, regardless of who is at fault for committing the accident. It is a highly valuable addition to cover accidents that mostly happen in severe weather conditions.
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This type of coverage goes above and beyond just providing coverage for accidents but also covers damages that happen due to vandalism, theft, and other natural disasters. Floridians find this helpful as winds and flooding can be a danger to vehicles, especially during hurricane season.
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This part of full coverage car insurance handles costs that are associated with injuries and property damage when you're at fault in an accident. This is not directly relatable to hurricane damage but is a fundamental aspect of any car insurance policy.
3 useful benefits of full coverage in hurricane prone areas
In hurricane prone regions like Florida, the increasing threat of storms can bring a moment of uncertainty and anxiety to the locals.
In the midst of preparations and concerns for personal safety, one aspect that is mostly researched is insurance coverage. Let’s now look at the top 3 benefits of full coverage car insurance to safeguard your vehicle and ease your worries when hurricanes hit.
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Peace of mind
Full coverage car insurance offers residents with vehicles peace of mind, knowing that their insurance will cover potential hurricane related damages. With this coverage in place, policyholders can make sure that they take other hurricane related measures to safeguard their family.
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Protection against severe damage
As discussed above, full coverage includes collision and comprehensive coverage to ensure that your vehicle is repaired or replaced whenever hurricane damage occurs. With the changing climatic conditions and unpredictable weather, this level of protection is invaluable.
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Coverage for flooding
Standard car insurance policies in Florida typically do not cover flood damage. With full coverage in place, the damages caused due to floods are covered as flooding is a common occurrence during hurricanes.
5 factors used for cost considerations in full coverage
While full coverage car insurance is an attractive option due to its comprehensive protection, it certainly comes at a cost. As some of you guessed, the premiums for full coverage policies are usually higher than those basic liability policies.
In addition to higher premiums, you might have to struggle with higher deductibles. These deductibles are the amount that you are required to pay out of pocket before the insurance actually starts to pay for you. Let’s see the cost of full coverage that varies based on the below factors:
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Location
Your location within Florida can highly impact your insurance rates. Mostly coastal areas may have higher interest rates due to increased risk of hurricane damage.
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Vehicle type
Your vehicle type and model also play a crucial role in determining your premium as expensive vehicles demand you to pay higher premiums due to their higher maintenance and replacement costs.
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Driving history
Your personal driving history highly influences your insurance rates as every individual might have a varied history such as accidents & driving violations.
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Coverage limits
This is a no-brainer! If an individual chooses a higher coverage, he/she will have to pay higher premiums. So choose it wisely.
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Deductibles
As mentioned above, the type of deductible you select can impact your out-of-pocket expenses in the event of a claim. Generally, lower deductibles result in higher premiums.
These factors have a considerable impact on your premium, so it is essential to assess your budget and find out your affordability in terms of premiums and deductibles. Some of these costs are usually higher when compared to others but it is crucial to ensure that you have adequate coverage to protect your vehicle and financial well-being during the occurrence of a hurricane.
In the upcoming parts, we will learn about the challenges faced by Floridians, essential tips to find full coverage car insurance, and cars with free insurance.
Did you know?
In Florida, 16 severe storms or hurricanes since 2020 have caused $100 billion to $200 billion in damage.
3 daunting challenges in obtaining full coverage car insurance
Full coverage insurance options offer comprehensive and overall protection, but obtaining it is challenging in hurricane prone areas like Florida. Most of the insurance companies in these areas have different policy options and premium rates tailored to the risk associated with hurricanes and tropical storms.
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Insurance companies usually operate in different protocols in hurricane prone zones. They adjust their rates based on certain risk factors in specific regions. In Florida, where hurricanes are a continuous threat, insurers usually have a stricter underwriting procedure and higher premiums to account for the risk of hurricane related claims.
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Premiums and deductibles vary depending on the risks involved. As discussed earlier, a comprehensive package demands individuals to pay higher premiums due to the risk coverage feature. Due to these, deductibles may be higher too. During an insurance claim, an individual is usually required to pay out of their pocket.
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While full coverage car insurance is available in Florida, it is neither accessible nor affordable to everyone. Some residents who are facing challenges with their regular income may find it challenging to obtain full coverage as they have to meet the above costs.
Keeping these challenges in mind, Floridians are required to carefully assess their financial standing before opting for a full coverage car insurance option.
Cars with free insurance! What are they?
As the name suggests, cars with free insurance is a policy that is already included in the price of the vehicle. This policy covers the drivers for a specified period, typically one to two years. Until this policy lasts, the car owner need not get separate insurance coverage. Let’s discuss its pros and cons now!
| PROS | CONS |
|---|---|
| It is convenient for car buyers as they need not buy insurance separately. It saves their time and simplifies the purchase process. | This type of insurance is for a limited period only, and once the coverage expires you need to add additional insurance which could be slightly expensive. |
| The initial purchase price of the vehicle might be high due to the added insurance package, but it results in higher cost savings during the coverage period. | There are certain limitations and exclusions to this option that have the potential to affect the extent of protection in certain situations. |
| You get vehicle protection from day one of purchasing your vehicle and need not wait for new insurance coverage to become active. | The insurance coverage that is added up to the purchase of these cars might have some gaps and not fit your preferences and needs. |
5 tips to find affordable full coverage car insurance
Finding full coverage car insurance can be quite overwhelming due to certain stricter policies followed by insurance companies. However, with thorough planning and research, you can manage to find comprehensive yet affordable coverage options. Here are some valuable tips that we have provided to help you get affordable coverage.
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Comparison shopping
Research different insurance providers available in your county and compare the quotes provided. Every insurance company out there has its own criteria in the pricing and underwriting process. Consult with a credible insurance agent to simplify the process.
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Bundle policies
Consider combining your auto insurance policy with home or renter’s insurance with the same provider. By doing so, insurance companies offer discounts to individuals who bundle up their policies.
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Maintain a good driving record
Safe driving practices, avoiding traffic violations, and a clean record can help keep your premium rates low over time. This helps save costs in the long run.
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Maintain continuous coverage
Insurance companies reward policyholders who maintain continuous coverage without lapses and switching between other insurance companies. This helps withdraw a maximum number of discounts.
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Usage-based insurance
This is a type of insurance program, where your premiums are based on driving habits and can be a cost-effective option if you don’t drive that often.
To conclude
Florida’s recent hurricane has caused severe damage to houses, vehicles, and public properties. This requires individuals to consider various options available in Florida within each county and have a clear understanding of what is covered and how much are they required to pay as premiums. It is a smart move if individuals pay higher premiums for their coverage so that they get maximum damage control after the hurricane.
Remember that full coverage car insurance helps you recover from damage and get back on the road in full form. By making proactive decisions while choosing your insurance package, you can better prepare for any challenges posed by Florida’s hurricanes and storms.
Insure your car and protect it today!
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