Property Damage insurance pays to fix a vehicle damaged by the at-fault driver.  Florida law requires vehicle owners to purchase a minimum of $10,000 of property damage insurance.  Failure to keep insurance may result in the vehicle owner's license being suspended.  Additionally, in Florida, the property damage insurer may declare the damaged vehicle a total loss.  A total loss occurs when the cost to repair the vehicle equals 80% of the market value of the vehicle.

In this situation, the property damage insurer pays either the owner of the vehicle or the lienholder at least 80% of the market value of the vehicle.  Unfortunately, most of the time, the property damage insurer offers to pay less than the market value of the vehicle.  Additionally, it is wise to purchase GAP insurance.  GAP insurance can help to pay off the difference between the loan amount and the amount tendered by the insurance carrier.