Many people have an insurance policy but do not exactly understand how they are covered or what they will do if they find themselves in the position of needing to utilize their insurance. Discover the basic types of car insurance and find out how to obtain the coverage you need for your particular situation.
- Liability Coverage – This type of insurance covers the bodily injury and the damages when you are at fault in an accident and you damage someone else’s car or property. Liability coverage is often mandated by law and often has a minimum limit requirement. You should always talk to an agent to discuss the best liability limits for you. The cost for extra coverage is minimal in comparison to paying out of pocket for medical expenses and damages exceeding your liability limits.
- Collision Coverage – This is the basic insurance type that covers your vehicles if you collide or run into something. This covers collisions with objects such as other cars, walls, barriers, bridges, and trees.
- Comprehensive Coverage – This covers anything that may happen to your car that is not directly related to a collision. This would include things such as theft, fire, or vandalism.
- Medical Payments – This coverage pays for any medical and funeral expenses, up to the limit insured, caused by an accident, and sustained by the insured or any other occupant of the insured’s vehicle, regardless of fault.
- Personal Injury Protection (PIP) – This coverage MUST be included in all liability insurance policies issued in Texas unless the insured rejects the coverage in writing. The minimum coverage is $2,500 in personal injury protection but higher limits may be purchased. The differences between Medical Payments and PIP is that PIP also covers loss of income, rehabilitation services, or cost of hiring a caregiver, Reasonable expenses incurred for essential services ordinarily performed by the injured may be paid instead of lost wages. Payment for all benefits may not exceed the limit purchased for any one person.
- Uninsured Motorist (UM) – This policy acts like the liability insurance of an uninsured motorist.
- Underinsured Motorist (UIM) – This coverage will help an insured with bodily injury and property damage caused by another motorist when that motorist has insufficient coverage. UIM will pay the difference between the insured’s UIM limits and the at fault driver’s bodily injury limits.
- Rideshare – This coverage is needed for anyone who drives their car to earn money, whether they drive for ridesharing companies like Uber or Lyft, or app-based delivery service.
- Telematics – Different carriers have different names for telematics. Telematics is the device or app used to track the driving habits of the insured. Most carriers offer a minimal discount when the insured initially signs up but may provide larger discounts at renewal.
Now that you understand a bit more about the different types of auto insurance available, you are probably ready to find the right coverage for you. The best way to do this is to work with the Willyard Agency. By doing this, you can rest assured you are getting the best deal as well as getting the personal attention you deserve.
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