What are the other types of car Insurance?
There are five smaller types of insurance other than collision, comprehensive, liability, and full coverage. They are Medical Payment Coverage, Personal Injury Protection, Uninsured/Under-insured Motorist, Gap Insurance, and Towing and Rental Coverage.
Watch the video below to hear Attorney McClure discuss the five types of insurance along with some helpful tips and information:
What do I do after being involved in a car accident?
After being involved in a car accident, your attorney will want to know if you have looked at your declaration page or your insurance policy. Most attorneys’ clients say no. Most of them say that “I just threw the paper away,” “I didn’t even look at it,” or “I just sign whatever and file it or put it away.”
>> Attorneys recommend that when you receive your insurance policy in the mail after renewing it to give your attorney a call and meet with them to go over it, for you to fully understand your policy. Your attorney will make sure that you understand if the coverage you purchased is right for you.
A lot of people purchase insurance coverage but do not know what they are paying. Insurance is expensive, and sometimes you are paying for something you already have or something you need. Make sure that when you receive the declaration page in the mail that you contact your attorney about to see if that policy is right for you.
>> Understanding your policy declaration can be something complicated. If you meet with your attorney about it, you will be able to understand it better. Once you understand your policy, you can inform your family about it and check their coverage.
Types of Automobile Insurance
There are many different types of auto coverage especially for personal injury and motorist protection. Additionally, there is also auto coverage that certifies uninsured motorist protection.
1. Medical Payment Type of Coverage (Med Pay)
Med Pay is mostly not recommended. Many people obtain this medical payment because they believe that it is good for them, thinking that it will pay any medical expenses. There is a catch to this type of coverage. The catch is that you need to pay it back!
- For example, if a person has a car wreck, they do not have medical insurance, and their medical bills end up being about $10,000; the victim must file a demand for the person who is responsible for the wreck. The victim obtains $15,000 from the demand, with that, you will need to pay your medical payment money.
Of course, this coverage is better than nothing. Many insurance companies will try to push you to purchase this since it can be a cheap purchase. From the medical payment, you would receive about $2,500. Whenever you receive a payment from the responsible party’s insurance, they are expecting to have it paid back.
2. Personal Injury Protection (PIP)
This type of coverage is very affordable, and it is similar to Med Pay coverage. It could range from $5-$12 a month, and it brings a lot of benefits. PIP not only helps you with medical expenses but also with any percentage of lost wages.
The minimum policy you obtain is $2,500 just as med pay. You can definitely get more than that, but $2,500 is the average that you obtain from this. The policy always depends on what you need after a wreck.
- The differences between Med Pay and PIP
In Med Pay, you are required to pay $2,500 as a minimum, and you need to pay it back. With PIP, you are obtaining the $2,500, and you will NOT have to pay it back. During the trial, the responsible party will provide you the money for the claim.
PIP is an extra characteristic of your insurance. Many people do not purchase this extra protection, because they do not want their policy to increase. Your premium will still increase every time you renew your policy.
If you are driving another person’s vehicle and they have personal injury protection, and you do too, you can claim the insurance in both PIP’s. Do not be afraid to take advantage of it because you are paying for it.
3. Uninsured/Under-insured Motorists
There is a lot of people driving without car insurance. It is important that you have this type of coverage in case you hit, or you are hit, by an uninsured motorist. If you have this type of insurance, you are sure to be covered and helped when this occurs, so you continue with your daily life and not have to pay thousands out of pocket for your injuries and damages.
This coverage costs about less than $30 a month, and it could be included in your policy, make sure that you talk to your agent about uninsured/underinsured motorist coverage.
The minimum of liability insurance a person can get in the state of Texas is $30,000. This insurance covers your medical bills if you hit or get hit by an under-insured motorist. In bad cases, $30,000 is not enough to cover injuries or damages from the wreck. It is crucial that you have this coverage, so you obtain help. It is recommended that you purchase this and PIP for your full coverage in case of an accident.
4. Towing and Rental
You can obtain towing and rental car coverage. Having a rental coverage is important for you to have some peace of mind when you are involved in a car wreck. If the other party is responsible for the wreck and you are out of a car, you can obtain a rental car right away when you are getting your car fixed.
If your car is a total loss, your insurance will give you a rental car during the time they are determining if your car is a total loss or not. You need to be careful about the rental car during this situation since in case of a total loss you will not obtain a rental car.
5. Gap Insurance
This type of insurance comes to use when you are aware of the value of your car, and the value of your vehicle is less than the price you want it. The gap insurance will pay for your vehicle loan. For example, if your car is worth $10,000 and you owe $15,000 the gap insurance will close the gap between the amount that your car is worth.
You should know the characteristics that affect your premium. These can be your driving record, tickets, accidents, even your credit score can affect this.
Make sure to talk to your agent about your declaration sheet.
Have your insurance information accessible in your glove box to be prepared for any situation. Be aware of all the different types of coverage that you can obtain that can help you during an accident, and do not be hesitant on obtaining or using them.