There’s one thing that all drivers have in common: the fact that they are required to have an insurance policy.
Most states require a certain level of vehicle insurance, and many people don’t think twice about purchasing car insurance. But have you ever stopped to ask what’s covered in your policy?
Understanding your vehicle’s insurance policy can help you to make informed decisions regarding your coverage.
Yes, we all know that terms and conditions can be confusing, but understanding the basic car insurance policy options can help you to determine if you have the right coverage for your vehicle.
Liability - Liability coverage indemnifies you in case of accidents for which you are found to be at fault. If you are at fault for an accident involving another vehicle, or a pedestrian, this insurance will pay for the majority of the costs.
Most states have minimum for liability coverage for vehicle owners. In Texas, the current liability coverage minimums are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 coverage for property damage -per accident.
Collision - Collision coverage pays for damages caused to your vehicle in the event of an accident with another vehicle. It’s important to make sure you have enough coverage to pay to replace your vehicle, should something happen.
Comprehensive - Comprehensive insurance covers for damages caused to your vehicle, outside of an accident. Comprehensive coverage protects your investment in case of perils such as fire, windstorm, hail, as well as vandalism, or theft.
Uninsured Motorist Coverage
Uninsured motorist coverage provides protection in cause of an accident that is caused by an uninsured driver. This coverage pays for your medical expenses, lost wages, as well as vehicle repairs.
Rental – Rental coverage is often required when renting a car. Your car insurance policy may be able to transfer to a rental. If you are planning to rent a car, check with your insurer to make sure you are covered.
Depending on your insurance provider, some of these coverage options may be included in your general car insurance policy. It's best to check with your agent to ensure you are properly covered, and in compliance with state laws.
It’s also important to know the term limits on the insurance policies that you purchase. For instance, if your vehicle is an older car with not much value, taking a high collision insurance policy, might not be necessary. In other cases though, you will want to make sure your insurance doesn’t have a cap that will prevent you from claiming the full amount.
At Texas Insurance Agency, we want to make buying auto insurance easy for you. Call us today with any questions you have. (877) 952-1010