Oftentimes when we speak to clients regarding their auto policies, we find that they are not aware of all that is covered on their Texas Auto Policy or what coverages mean. While having auto insurance is required by state law, it is important to understand what all the numbers and abbreviations mean when buying insurance. Below, we have outlined the different types of coverages that are required and/or optional with a brief description.
Liability Coverage: This helps protect you and your assets in the event that you cause an injury to others or damage the property of others with your vehicle. Bodily Injury Liability covers you if it is found that you are responsible for an accident in which someone is hurt or killed. Property Damage Liability covers the damage your vehicle caused to someone else's property.
As this is a required coverage, the state minimum for liability coverage is 30/60/25. This means that $30,000 per person and $60,000 per accident for bodily injury with $25,000 for property damage.
Uninsured Motorists/Underinsured Motorists Coverage: This covers you, other drivers on the policy, and passengers in your car if you are involved in an accident caused by an uninsured motorist or if the other driver did not have enough insurance to cover your bills, up to you policy's dollar limits.
*If you do not want this coverage, you must reject it in writing as it is recommended by the state*
Medical Payments Coverage: This covers the cost of doctors, hospitals, and funeral expenses for you and/or your passengers that result from an accident, regardless of who was at fault.
*This is not a required coverage*
Personal Injury Protection Coverage: This coverage is the same as medical payments coverage (above), but it also covers 80% of lost income and the cost of hiring a caregiver for an injured person. Something to keep in mind with this coverage is that it only pays up to the dollar amount chosen. Insurance companies must offer you $2,500 in coverage, but you can certainly buy more.
*If you do not want PIP coverage, you must reject it in writing*
Collision (Damage to Your Car) Deductible: This pays for the damage to your own auto as the result of colliding with another vehicle or object. Your car is covered no matter who caused the accident.
Comprehensive (Physical Damage Other than Collision) Deductible: This pays for damage to your auto caused by something other than a collision. This includes theft and vandalism, and disasters such as fire, flood, and hail.
*With the Collision and Comprehensive Deductibles, it isn't necessary to have them. However, we always recommend having this coverage with newer vehicles.
Below are some optional coverages that are nice to have.
Towing and Labor Coverage: This pays the towing charges when your car cannot be driven. It also pays for labor charges, such as someone changing your tire at the place where your car is broken down.
Rental Reimbursement Coverage: This pays a set daily amount for a rental car if your car is stolen o ris being repaired due to damage covered by your policy.
As you can see, there are many different coverages that insurance companies offer. Give us a call at (877) 892-4565 or send us an email to ScottReed@Shop2Insure.com and we can go over your policy to see if there is any kind of coverage that you are missing out on!
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