Explaining Auto Insurance

Make it simple-Auto insurance

    Have you tried to read your insurance policy and just given up? It can be very confusing! But I am going to try to simplify it for you. Over the next several posts I will attempt to simplify each type of insurance, begining with Auto insurance:

    Every policy has a Declarations Page. 

This page “declares” who you are, what cars you have insured, your coverage choices and how much you are paying for this policy period.

    There are 2 types of coverage on your auto policy. Coverage that protects you and coverage that protects the other party.

Coverage that protects you:

Uninsured/Underinsured Bodily Injury: covers your injuries (or death) in case the responsible party has little or no insurance. It also covers those riding in your car.

Uninsured/Underinsured Damage: covers damage to your car or property in case the responsible party has little or no insurance.  There is a state mandated $250 deductible in Texas for Uninsured/Underinsured motorist coverage.

Medical payments: covers medical or funeral expenses if you or anyone in your vehicle are injured in the accident.

Personal Injury payments: covers medical or funeral expenses and possible lost wages if you or anyone in your vehicle are injured in the accident.

Collision Coverage: pays for damage to your car if you hit another car or something else (like a tree or a building).  You must pay a deductible before your coverage will kick in. Deductible amounts determine the cost of this coverage. The higher the deductible, the lower the premium. The most common deductibles requested are $500 or $1,000.

Comprehensive Coverage: (also called Other than Collision) pays for damage to your car if something other than a collision occurs. This could be fire, theft, hit by an animal (yes, the animal hit your car!) The same type of deductible rules apply to Comprehensive coverage as they do for Collision coverage. But, they are separate deductibles.

Coverage that protects the other party:

Bodily Injury Liability: protects you from having to pay medical costs, lost income and funeral expenses of other people involved in an accident that is your fault.

Property Damage Liability: protects you from paying for the repair or replacement of the other person’s car.  There is no deductible for liability coverage. You have many amount options for this coverage. The state minimum amount required in Texas is $30,000/$60,000/$30,000. This means you are covered for $30,000 per person/$60,000 per accident and $30,000 for property damage. I recommend higher limits than the state minimum. If you cause an accident and the liability claim is 75,000, if you have state minimum coverage, you will pay the additional $15,000 out of pocket. It is not expensive to increase your liability limits. Ask your agent to explain your options.

Optional Coverages that protect your car:

Towing: pays for towing and some basic roadside assistance, depending on the carrier and towing option you choose.

Rental Reimbursement: pays for the cost of renting a car while yours is being repaired after an accident.

Loan/Lease Gap Insurance: pays the difference between what you owe and the total value of your car if it is totaled in a claim. This is only valid if you have a new car (less than 3 years old).

There are many factors in Car insurance, but they don't have to overwhelm you. If you have any questions, please contact your agent. That is what they are there for. If they cannot answer your questions, please contact us. 

There are three ways to request a quote for your insurance needs: 

* Visit our website

* Email us

* Call Brockman Premier Insurance at 877-987-8683