What Type of Car Insurance Suits You?
When making the decision to buy car insurance or any other insurance, you’re met with tons of options. Choosing the right auto insurance depends on what exactly you want covered in case your vehicle is involved in a car wreck.
There are 8 different standard-type coverages for Texas auto insurance.
This article will focus on the three most common: Liability, Comprehensive and Collisions insurances. Before we get into those, let’s take a look at the basic Texas auto insurancerequirements:
- Minimum personal injuryliability is a 30/60/25 policy. This means:
- If you cause a wreck involving a single person, the other person can collect up to $30,000 for personal injuryand lost wages
- In the case that two or more people in the wreck make a claim on your insurance, the most they can claim for all of them combined is $60,000.
- $25,000 is the minimum amount of property damage insurance
With the minimum liability policy, the person you injure or whose car you wreck can, in fact, find ways to increase the claim beyond the basic limit. You need to have enough coverage, for worst-case scenarios. Below are three coverages you need to be well-informed about:
What is liability insurance?
It pays to repair or sometimes replace the other person’s vehicle and to cover their medical bills, lost wages, and pain and suffering resulting from the car wreck you’re responsible for. Your insurance company also covers funeral expenses in the case the other person dies. Some liability policies, however, do not cover the cost of replacing the other person’s vehicle, leaving you with the expense. Requiring to pay the maximum $25,000 standard policy.
Who does it cover?
The policy only covers people whose name are written on the policy. If a person not listed on your policy gets involved in a car wreck with your vehicle, they’re not covered by your insurance.
What if you get sued and it’s no longer just a claim?
You will be provided with a lawyer to represent you. Your insurance company requires you to give a recorded statement with all the details surrounding the car wreck.
What does it pay for?
It covers car wrecks that are not your fault, ones caused by Mother Nature like floods or fires and instances like terrorist attacks.
What do you do if you only have liability coverage? Are you out of a car?
Yes, you lose your car without compensation. Comprehensive insurance is not expensive and it is convenient for incidents that are out of your control.
What and who does it cover?
If a deer dashes onto the road and you hit it or a branch falls on your car, comprehensive insurance covers these cases. However, when you swerve and hit a pole or another vehicle in an attempt to escape the deer or branch, collision insurance covers the damage.
The insurance covers you and anyone listed by name in the policy.
If someone borrows my car and they get into an accident, will the other person be covered under the liability?
In most cases and only when the driver has a license and the car owner has collision insurance, coverage is given. Sometimes, however, insurance companies may fail to offer coverage.
What’s the difference between uninsured insurance and underinsured plans?
Uninsured insurance applies when you make a claim and your medical bills are over the standard minimum personal injury coverage $30,000. You reach out to your insurance company to demand coverage of the excess medical bill. The “underinsured motorist claim” grants you an additional minimum $30,000. You need to sign for this coverage prior to the incident to prevent rejection of the claim.
When do you recommend hiring an attorney after a vehicle accident?
As soon as the car wreckhappens; when personal injuryand other evidence of the accident is still intact.
Do you recommend giving the statement to the insurance carrier?
No, I don’t. Disclose information only to your attorney and your insurance company.
Although having one of the three coverages is relatively enough, it doesn’t hurt to have all of these insurances. In fact, it means you get full coverage, relieving you of the burden of ever incurring personal costs in case of a car wreckyou cause.
Do you recommend obtaining an umbrella policy in additional in addition to your full coverage?
Yes. An umbrella policy is affordable, and it covers nearly all your assets, your vehicles, your house, and other possessions.
Get your car insurance as soon as possible for coverage in case of an accident.
Obtaining the correct car insurance is substantial to prevent having to pay later. Having your policy at hand and knowing what it covers makes it crucial when involved in a car wreck. Contact your attorney to go over your policy, they will help you with what needs improving and if you should obtain another insurance.