Many people look at auto insurance as one of those necessary evils. You have to keep an auto insurance policy if you want to be legal on the roads. However, if you really think about it, having a policy can keep you from going bankrupt in the event you’re ever involved in a major accident.


If you’re involved in an accident, you have coverage on bodily injury for those in the other vehicle, as well as property damage. The limits you have in place are important because anything above and beyond those limits are your financial responsibility.

Some people will call a lawyer if they were the “victims” of an accident, even if there’s nothing wrong with them. They hope for a big settlement, and this kind of thing can cost you big time. If they have bodily injury that adds up to $40,000 and you only have $10,000 worth of coverage, the other $30,000 would be your financial responsibility – and that’s enough to bankrupt most people.


There’s collision insurance, which isn’t required on auto insurance in Florida, but is available to be added. The benefit to this coverage is that it will provide more coverage in the event you’re involved in a collision. It’s what’s going to take care of your car – liability coverage takes care of the other person’s car. You want your car repaired, too and it’s best if the insurance company takes care of the repairs. Otherwise, it’s all coming out of your pocket.


There’s also what’s known as comprehensive coverage, which takes care of non-driving related damage to your car. This includes a long list of things such as vandalism, falling objects, and acts of God. You never know when something is going to happen. By getting an auto insurance policy, you ensure that you have the coverage for whatever may happen. This way, all you have to do is pay a deductible instead of the full amount of repairs.

Bankruptcy is never something you aim for. Regardless of how much money you have in savings, it’s there for better things than car repairs and lawsuits. Accidents happen all the time and some are more severe than others. The people in the other cars could sue you for damages, pain and suffering, and all sorts of other things – especially if they get a good lawyer.

With more coverage, you have more protection in place. You don’t need to rely solely on the minimum coverage required by the state. At the end of the day, it’s up to you how you’re going to protect yourself and that means getting additional coverage on your auto insurance policy.