Insurance for Dummies: Your Guide to Understanding the Policy
You know you need car insurance. Even if it were not legally mandated by the state of Texas (and it is!) and it would be a good idea to have. Your car was costly and getting into an accident without insurance would mean you’d have to pay for repairs and replacements on your own. Even more than this, if you were at fault for a serious accident and sued, you’d be liable to pay thousands, hundreds of thousands, or even millions from your own pocket. Texas car insurance offers you the protection and security you need in order to know you won’t be financially ruined from a car accident, whether it is your fault or not.
That doesn’t mean car insurance is simple. In fact, it can be quite complicated and confusing. There are terms and concepts that are important to understand so you have the right coverage. We’re here to help you!
The state of Texas requires you to carry the following auto liability coverage:
Bodily Injury Liability: If you are at fault for an accident, you’re financially responsible for the other driver’s medical bills. BIL covers any costs associated with injuries or death that you cause while driving your car.
Property Damage Liability: It is not just medical bills you’re responsible to pay. This coverage will reimburse the other driver for damage that you cause to another vehicle or other property. This could be a neighbor’s fence or mailbox.
If you stopped with only what the state requires of you, you’d be missing out on a big chunk of the protection you need. Did you read over the list above and notice anything missing? None of it actually reimburses you! Basic, legally mandated Texas car insurance does not cover damage to your own car. To cover this, you need to purchase the following optional auto insurance coverages. These include:
Collision: This is the coverage that reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object. If you accidentally hit a tree, guardrail, or anything else, this is the coverage you need to make a claim and get a check from your insurance carrier.
Comprehensive: Not all auto insurance claims are the result of a car crash. Comprehensive coverage provides you financial protection against other perils, like theft and damage caused by a fire, flood, hurricane, vandalism, hail, falling rocks, or other hazards.
Uninsured Motorist Coverage: If a car crash isn’t your fault, you shouldn’t have to pay for it. But what if the person who is at fault can’t be found in order to make them responsible? Or what if they are driving illegally without insurance? This coverage reimburses you when an accident is caused by an uninsured motorist or in the case of a hit-and-run.
If you have any further questions, Pronto Insurance is here to help! Chat with us using the red button at the lower right hand corner of our website or call us at 1-888-338-6523 for more information.