what is generic insurance?

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Asked April 13, 2017

1 Answer

The idea of generic" insurance is most likely "state minimum coverage." In other words, "generic" insurance would just be something that covers the risks you may have as a driver. It is extremely important to know, however, that the minimum amount is literally just a minimum. That means if you were to be found liable for damages (or even if you were sued then you would have court costs). The overall costs associated with a claim will be covered up until you reach your limit, but anything above that limit will be your responsibility and not the insurance company's obligation.

With respect to the actual minimum coverage for the state of Florida, the limits are $10,000 for personal injury and then another $10,000 for property damage. In other words, the minimum or "generic" coverage to get on the road and be legal behind the wheel will be only having coverage of $10,000. This can be something that a responsible individual will most likely ignore. It may be legal, but think about the hypothetical scenario of getting into even a minor fender bender. Between the towing, the repairs, and any addition issues that could come from ordering custom parts, you could absolutely see how a $10,000 limit would quickly become exhausted.

Furthermore, when you start to consider the issues that could occur from a medical expense scenario, you can see that $10,000 could possibly be used up just from an ambulance ride or an overnight stay in the hospital. Throw in the fact that long term problems could be present such as multiple surgeries and rehab or therapy, and $10,000 won't even put a dent in the total medical bills.

Overall, the idea of having basic or generic insurance will satisfy a legal obligation that you to get onto the road with four wheels. However, you also need to consider your own personal liability. It just doesn't make sense to save a few dollars per month while exposing yourself to unlimited potential losses.""

Answered April 19, 2017 by fl_pc

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