When looking into a new automotive policy, there are things that you need to be aware of. Please take a look at our quick guide, but when it comes time to shop for new insurance, be sure to reach out so we can make sure you have all the coverage you need.
Texas requires you to carry at minimum liability insurance. Liability insurance pays for the other party if you are in an auto accident and fount to be at fault. The state minimum in Texas is $30,000 per person bodily injury, $60,000 per accident bodily injury, and $25,000 property damage. However, if you think about it if someone was seriously injured in an accident $30,000 is not enough to cover a high medical bill, and you will be held liable for anything over that amount. LIG recommends that everyone carry at least $100,000/$300,000/$100,000.
This coverage is for medical bills that may be incurred by you or passengers in your vehicle, regardless of who is at fault for the auto accident.
Personal Injury Protection
Personal Injury Protection or PIP covers lost wages and medical payments resulting from an auto accident, regardless of who is at fault. Typically policies do not offer both Medical Payments and PIP, as both cover medical bills. Because PIP also covers lost wages, it usually is more expensive.
Uninsured motorist covers you if you are involved in an accident with someone who doesn’t carry auto insurance or doesn’t have enough insurance to cover the damage they caused to you or your vehicle. An estimated 1 in 5 drivers in Texas does not carry auto insurance.
Comprehensive coverage covers damage to your automobile from things other than a collision. Texas does not require this coverage, but if you have a loan, you may be required by the bank to carry this coverage. Some examples of comprehensive losses would be theft, vandalism, hail, or flood. Make sure you have a deductible that you feel comfortable paying should the need arise.
Collision coverage covers your car if it is damaged in collision with be it in an accident with another vehicle or object. Like comprehensive coverage, collision is not required by law but is typically required if you have a loan on your car.
This coverage does not cover you while driving a rental car but rather provides you with a rental car should your car be in the shop for repairs due to a covered loss. Check the rate that your rental car will be paid to ensure it meets your needs.
Towing and Labor
Towing and labor or roadside assistance helps to pay for standard roadside issues such as jump starts, flats, towing, running out of gas, or lockout assistance. Depending on your policy you may have a number to call directly to have a wrecker sent or you may be reimbursed after the event.