How much car insurance coverage do I need?
The amount of auto insurance coverage you need depends on a variety of different factors. When choosing your coverage limits and deductibles, consider the various risks that you, your passengers, and your auto are likely to face. You also need to consider the assets you own.
What is UM/UIM ?
As the Texas Department of Insurance (TDI) notes as a definition of Uninsured / Underinsured Motorist (UM/UIM) coverages it pays your expenses from an accident caused by an uninsured motorist or a motorist who did not have enough insurance to cover your bills, up to your policy’s dollar limits. Also pays for accidents caused by a hit-and-run driver if you reported the accident promptly to police.
Am I covered if another driver ran me over?
To be covered by your auto insurance policy as a pedestrian that is hit by a car you would usually need Medical Payments (MedPay) or Personal Injury Protection (PIP). In Texas MedPay pays for medical and funeral bills resulting from accidents, including those in which the other person is a pedestrian or bicyclist. And TX PIP pays the same as the medical payments coverage, plus 80% of lost income and the cost of hiring a caregiver for an injured person.
What is GAP insurance?
GAP insurance can provide valuable protection during the early years of your car's life if you have a loan or a lease.
f a loss occurs, GAP insurance will pay the difference between the actual cash value of the vehicle and the current outstanding balance on your loan or lease. Gap Insurance protects your vehicle lease or loan. Sometimes it will also pay your regular insurance deductible.
What is COMPREHENSIVE coverage?
Covers damage caused to the insured's auto (your automobile) from risks such as theft, fire, falling objects, earthquake, flood, missiles, explosion, riot and civil unrest. The deductible is the amount you choose to pay upfront (if any) before
the auto insurance policy pays. The higher the deductible chosen the lower the comprehensive coverage cost within the Texas auto insurance policy .
What is Collision coverage?
Covers damage caused to the owners auto from a collision caused by another auto or other object. The deductible is the amount you choose to pay upfront (if any) before the auto insurance policy pays. The higher the deductible chosen the lower the collision coverage cost within the car insurance policy.
What is liability only?
Texas Liability Coverage limits explanation: 25/50/25
$25,000.00= bodily injury liability maximum for one person injured in one accident.
$50,000.00 = bodily injury liability maximum for all injuries in one accident
$25,000.00= property damage liability maximum for one accident. This only covers the third party if you hit someone and if are at fault.
Property Damage Liability
Damage caused by the insured (you) to someone else's property, such as a motorcycle, car, truck, fence, or house, is covered through property damage auto insurance coverage. This coverage also assists in protecting you if a lawsuit arises from an accident. The minimum coverage amount in Texas is $25,000 and can up to $500,000.00 CSL.
What is P.I.P ?
Personal Insurance Protection Coverage (PIP) - Texas Auto Insurance Policy .Texas does not require (PIP) or personal injury protection coverage. This coverage pays medical bills for injuries suffered in an auto accident regardless of who caused the accident.
Pays 80% of all reasonable expenses for necessary medical, surgical, x-ray, dental and rehabilitative services, including prosthetic devices, wheelchairs, crutches, slings, neck braces and splints (including necessary travel related to medical care.)
Pays 60% of gross income loss caused by inability to work because of an injury suffered in an accident. $5,000 death benefit.
What is Medical Payments?
Medical payments coverage pays for the medical and funeral expenses for you or others hurt or killed in an accident while riding in or driving your car or truck. It will also cover you or members of your family if you are hit by a car when you are walking or if you are riding in another car or truck. This coverage will pay for your medical and funeral expenses even if you cause the accident. The coverage is often limited to medical care you get in the first one, two, or three years after the accident and is limited to a specific dollar amount.
