TYPES OF AUTO INSURANCE COVERAGE’S
Liability is the minimum amount of insurance and is required by the State of Texas. Liability covers the expenses of the other driver if you are found legally responsible for an auto accident. Liability does not cover any damages that may be done to you or your car if you are found legally responsible for an accident. It also does not cover any expenses if another driver is legally responsible for an accident. Liability includes varying amounts of the following two categories:
Property Damage Liability Coverage – Covers the damage done to another person’s vehicle and/or property if you are found legally responsible.
Bodily Injury Liability – Covers the medical expenses of the other driver, as well as pain and suffering , lost wages, and other special damages if you are found legally responsible for an auto accident.
Uninsured Motorist Coverage
Uninsured motorist coverage pays for damage and protects you from having to pay out of pocket if you get in an accident with an uninsured motorist. Even though, it is mandatory to have a minimum of Liability insurance in the state of Texas you would be surprised by the amount of drivers who were uninsured – which is why we highly recommend having this coverage.
Under insured Motorist Coverage
Under insured motorist coverage covers expenses if you get in an accident and the other driver has an insufficient liability policy which does not cover the total expenses of the accident.
Personal Injury Protection – (PIP)
PIP is different from bodily injury liability because unlike bodily injury liability it covers you, everyone else who is on your policy, your passengers, and any other person who is allowed to drive your vehicle. PIP covers medical costs, funeral costs, lost wages, rehabilitation, and treatment that may be needed due to an auto accident. PIP is not required by law in the state of Texas, but is highly recommended.
Comprehensive Insurance covers damage done to your vehicle by anything besides another vehicle. Comprehensive insurance covers the unexpected such as, theft and vandalism, natural disasters (hurricanes, tornadoes, earth quakes, hail, fire, floods, and etc.), and if you hit an animal. Comprehensive insurance is not required by law in the state of Texas, but is highly recommended, especially in an area prone to floods and hurricanes.
Collision insurance protects your car in the case of an accident whether you are found legally responsible or not. Collison insurance covers your car if you collide with another vehicle, object, or if your vehicle rolls over. Collision insurance is not required by law in the state of Texas, but is highly recommended.
When you drive a new car off the lot the value of the car can decline as much as 30%, in as little 4-6 months. If you get into an accident within the first few months of owning your brand new car your insurance will not pay you for the amount you bought the car for, it will pay you for the current value of the car which van be significantly less. Gap insurance fills in the “gap.” If you bought a new car for $18,500, you wreck it 6 months later, and you still owe $17,500 but it’s only valued at $15,400 then gap insurance will pay for the remaining $2,100. Gap insurance is not required by the state of Texas but is highly recommended for new car owners.
Rental Car Insurance
This type of insurance is good for frequent travelers who often need to use rental cars. Rental car insurance protects you from having to pay, out of pocket, for an unforeseen auto accident while driving a rental car.
Emergency Road Side Assistance
Emergency road side assistance coverage is highly recommended. Road side assistance will provide assistance with mechanical labor, towing, changing tires, calling a locksmith, and aides in the delivery of; batteries, gas, oil, and etc.