How to Read Your Auto Insurance Policy: Understanding Property Coverages

Don't wait for an accident to figure out what your auto insurance covers. This guide breaks down the property coverage section of your policy so you know exactly what you're protected against.

ThatCarHitMe.com Editorial
Oct 26, 2026
5 min read

What to do when your car is damaged in Florida

Dealing with car damage after a crash is stressful, especially when it was not your fault. This guide will help you understand the insurance claims process in Florida so you can get your car repaired and get back on the road.

Your options for a property damage claim

If someone else caused the damage to your car, you generally have two options for an insurance claim:

  1. File a claim with the at-fault driver's insurance company.
  2. File a claim with your own insurance company (if you have the right coverage).

Filing with the at-fault driver's insurance

In Florida, all drivers are required to have Property Damage (PD) liability insurance to pay for the damage they cause to other people's property.1 The minimum amount of PD coverage a driver must carry is $10,000.2

This minimum is often not enough to cover the full cost of repairs. Repair costs can be high, often running into thousands of dollars.3 If the damage to your car is more than the at-fault driver's PD coverage limit, their insurer will only pay up to the limit. You may be personally responsible for the rest.

Filing with your own insurance

If the other driver is uninsured, underinsured, or if you were at fault, you can file a claim with your own insurer if you have Collision coverage.

Collision coverage is for repairing or replacing your car after a crash, regardless of who is at fault. A deductible is the amount an insured person pays for covered health care services before the insurance plan begins to pay.4 Your insurance company may then try to recover its costs from the at-fault driver's insurer. This process is called subrogation. If your insurer is successful, they may also be able to get your deductible back for you.5

The repair process

After you file a claim, the insurance company will have an adjuster inspect your car to estimate the cost of repairs.

Choosing a repair shop

The Federal Trade Commission affirmed in a 2021 report to Congress its commitment to combatting manufacturer repair restrictions to ensure consumers have a choice of where to have their vehicles serviced.6 The insurance company may suggest a list of preferred or direct repair program (DRP) shops, but you are not required to use one. If you choose your own shop and its estimate is higher than the insurer's, you may have to negotiate with the insurer or pay the difference.

"Total loss"

If the cost to repair your car is more than the car is worth, the insurance company may declare it a "total loss."

In that case, the insurer must pay you the actual cash value (ACV) of your car, which is what it was worth right before the crash. The ACV should include adjustments for the car's mileage and condition. You can try to negotiate the ACV with the insurer if you believe their offer is too low.

Getting paid

Once you and the insurer agree on a settlement amount (for repairs or a total loss), the insurer is required to pay you promptly.

Florida law sets deadlines for insurers to pay settlements. An insurer that pays late may face penalties, such as having to pay interest.

Storage fees

If your car is not drivable, it may be towed to a storage yard. These fees can be expensive and add up quickly. The insurance company is generally responsible for paying reasonable storage fees for a certain period of time.

However, be aware of the rules. Florida law has rules about the notice an insurer must provide before it can stop paying for storage charges it had previously approved. It is important to move your car from the storage yard as soon as possible. This can prevent you from being stuck with a large bill.

This article contains general information and does not provide legal advice.

Sources

  1. Florida Statutes § 324.022 (2026) - http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0300-0399/0324/Sections/0324.022.html

  2. Florida Department of Highway Safety and Motor Vehicles, 2026 - https://www.flhsmv.gov/insurance/

  3. Why Car Repair Costs Are Rising in 2026 (And How to Protect Yourself) - https://coveragex.com/why-car-repair-costs-are-rising/

  4. U.S. Centers for Medicare & Medicaid Services, 2024 - https://www.healthcare.gov/glossary/deductible/

  5. Washington Administrative Code 284-30-393 - https://app.leg.wa.gov/wac/default.aspx?cite=284-30-393

  6. 2021/2022 Auto Insurance Database Report - https://content.naic.org/sites/default/files/publication-aut-bb-auto-insurance-database-report.pdf

About This Guide

Written by: ThatCarHitMe.com Editorial

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