We are glad you are considering our partnership in finding you the right auto coverage for your vehicle.
We represent top-rated Insurance companies that provide various auto coverage options to include varying deductibles, good driver discount, multi-car discount, roadside assistance and many more.
We have put together a brief literature below to help you understand the various coverages offered with your auto coverage.
Texas law requires people who drive in Texas to pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver’s car and pays other people’s medical expenses when you’re at fault in an accident.
If you buy insurance to meet the state’s financial responsibility law, you must buy at least the minimum amount. The current minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25 coverage.
Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the other driver’s costs if you’re in an accident. Other drivers could sue you to collect the difference. Consider buying more than the basic limits to protect yourself financially.
- Liability Coverage
Liability coverage covers your legal liability for damages you cause during an accident. It covers Bodily Injury and Property Damage (BI/PD) up to the limits you select. However, it doesn’t pay to repair or replace your car or to treat your injuries.
Liability insurance covers the following expenses, up to your policy’s dollar limits, for the people in the other car involved in an accident that you or someone covered by your policy caused:
- medical and funeral costs, lost wages, and compensation for pain and suffering;
- car repair or replacement costs; and
- car rental while the other driver’s car is being repaired.
Liability insurance also pays your defense costs, including attorney fees if someone sues you because of the accident. If you are arrested following an accident, liability insurance will pay up to $250 for bail.
Liability coverage meets the state’s financial responsibility requirement.
- Collision Coverage
This coverage pays for damages to your vehicle. It pays for the cost of repairing or replacing your car after an accident. You’ll get the amount of your car’s actual cash value, the amount to repair or replace the car, or the amount shown on the declaration page, whichever is less. Actual cash value is the current cost to replace your car, minus depreciation. This coverage will cover you, your family members, and anyone else insured under your policy.
Collision coverage is subject to a deductible of the amount that you choose. We recommend that you select a deductible amount you are most comfortable with. If there is a Collision claim on your policy, you are responsible for covering your deductible out of pocket before the insurance company pays
- Comprehensive Coverage
This coverage pays for damages caused to your vehicle by an event other than collision. Such events include; theft, fire, vandalism, hail, falling objects, flood etc. Comprehensive coverage might pay for a rental car. Your policy won’t pay to replace a stolen car unless you report the theft to police.
Comprehensive coverage is subject to a deductible of the amount that you choose. We also recommend that you select a deductible amount that you are most comfortable with. If there is a comprehensive claim on your policy, you are responsible for covering your deductible out of pocket before the insurance pays.
- Uninsured/Underinsured Motorist (UM/UIM) Coverage
This coverage pays for expenses incurred as a result from an accident caused by an uninsured motorist, a motorist who did not have enough insurance, or a hit-and-run driver. It also pays for personal property that was damaged in your car. There is a mandatory $250 deductible for property damage. This means you must pay the first $250 of the expenses yourself before the company will pay.
Bodily injury UM/UIM pays for medical bills, lost wages, pain and suffering, disfigurement, and permanent or partial disability. There is not a deductible with this type.
Property damage UM/UIM pays for auto repairs, a rental car, and damage to items in your car.
You, your family members, passengers in your car, and others driving your car with your permission are covered under this coverage. Insurance companies must offer UM/UIM coverage and If you don’t want it, you must reject it in writing.
- Medical Payments Coverage
This coverage covers medical and funeral bills resulting from an accident regardless of who is at fault. It covers you, your family members, passengers in your car, and other injured people, including bicyclists and pedestrians, regardless of who caused the accident. This is an optional coverage.
- Personal Injury Protection (PIP)
PIP will cover medical payment coverage(above) plus 80% of lost income and the cost of hiring a caregiver for an injured person resulting from a covered accident. This coverage is also optional.
- Towing and Labor Coverage
This will cover towing charges when your car can’t be driven. It also pays labor charges, such as changing a flat tire or jump-starting your battery. The coverage varies with company.
- Rental Reimbursement Coverage
This will pay for rental car expense incurred if your car was damaged by something that your policy covers. It is a set daily dollar amount. In most cases, you can only get this coverage if you buy Collision and Comprehensive coverage.
Factors that Affect Your Auto Premium
Companies use a process called underwriting to decide whether to sell you a policy and what rate to charge you. Companies must file their underwriting guidelines with TDI and update them each time they make a change. The factors companies typically use to set premiums include:
- Your age and, for younger drivers, your marital status. Men under 25 and unmarried women under 21 have the highest rates. Drivers over 50 may get discounts.
- Your driving record and claims history. A good driving record can save you money. Insurance companies will charge you more if you have accidents or tickets on your driving record. Companies may also charge more for major convictions, some driving violations, and accidents that damage property. Some surcharges are mandatory and will apply to your premium for three years.
- Where you keep your car. Rates are typically higher for people who live in cities because they have more accidents and auto thefts than people who live in rural areas.
- Your car’s type. Collision and comprehensive rates are highest for luxury, high-performance, and sports cars. Rates may also be higher for cars that damage easily or cost more to repair.
- Your car’s primary use. Your rates will be higher if you drive your car to and from work or for business. Rates are lowest for people who only drive for pleasure.
- Your credit score. Companies often use your credit scores to decide if they want to sell you a policy and at what cost. A company can’t refuse to sell you a policy or cancel or non-renew your policy based only on your credit. Visit the Learning Center on HelpInsure.com, a website maintained by TDI and the Office of Public Insurance Counsel, to find out which companies use credit scores and how they use them.
- Whether you drove uninsured in Texas. Companies may charge more if you drove without insurance in Texas for more than 30 days in a row in the 12 months before you applied for insurance. If you didn’t, a company can’t charge you more for liability coverage because of your prior lack of coverage.
Discounts can help you save money on your premium. Discounts vary by company. The following is a list of some of the ways you could receive a discount:
- defensive driving courses,
- driver education courses for young drivers,
- students with good grades,
- parent or family whose young driver is away at school without a car,
- more than one car on a policy,
- policy renewal with good claims and driving records, and
- a homeowners’ policy with the same company.
You might also qualify for a discount if your car has:
- airbags and automatic seatbelts,
- automatic daytime running lights,
- antilock brakes, and
- anti-theft devices.
The above Texas vehicle insurance descriptions and examples are meant to supplement, but not replace, the coverage detailed in your individual policy. Please refer to your actual policy contract language for coverage details.
Call us at (469)878-7535 or submit an online quote today and let us help meet your auto insurance needs.