What Are All Those Options On My Car Insurance?

Portrait of happy couple shaking hands with car dealer after buy a new car in the showroom

You know you need car insurance – no matter where you live, it’s the law. Learning more about the coverage options and deductibles available to you can help you make the best possible decisions for your finances, your unique circumstances, and your family.

Deductibles vs. Coverage

These terms are easily confused; a deductible is the amount you would need to pay out of pocket when you make an insurance claim. Once this amount is paid, your insurance will pay the rest, up to the limit on your policy. This figure matters because while a high deductible can help lower your monthly insurance costs, you’ll have to come up with more money out of your own pocket if you actually make a claim.

Your insurance coverage is the actual policy itself; each policy is unique and Texas and other states have minimum coverage laws that need to be adhered to. There are several different coverage options designed to protect you, your vehicle and even other people and their property.

Liability

If you have injured someone or were at fault for an accident, then your insurance would cover their damages. This part of your policy includes damage you are legally responsible for including property and for injuries you cause. The bodily injury liability portion could cover medical treatment, lost wages, and other types of damage.

Personal injury protection (PIP)

If you are in an accident and have medical expenses, then this form of coverage will pay for your care; it includes everything from rehabilitation to lost earnings and replacement services.

Collision

If your vehicle was damaged, this coverage will help repair it. Whether you were in an accident with another vehicle, hit a stationary object or ever rolled your car on a snowy road, this coverage exists to repair or possibly replace your vehicle. You will have a deductible to meet first as described above, then collision insurance would cover the rest, up to your stated limit.

Comprehensive Insurance

If your car is damaged or destroyed but not involved in a collision, comprehensive coverage protects you and pays for repairs. Cars damaged by vandalism, theft, fire, wind, hail and water fall into this category.

Uninsured Motorist

If you are in an accident caused by someone else and that driver does not have liability insurance, this coverage protects you; depending on your policy, this could cover just property damage or other situations as well.

Underinsured Motorist

If you are in an accident caused by someone who has some insurance, but not enough to fully cover your damages, this covers you for the rest.

Rental Reimbursement

Car repairs take time; this optional coverage provides you with a way to rent a car while you wait for yours to be fixed after a covered event.

Emergency Road Service

Flat tires, breakdowns, lockouts and more; this optional coverage can pay for a tow or assistance when you are on the go.

Your insurance options can get overwhelming, particularly if you are adding a new car or driver to your family. Contact us for help sorting through your options and for personalized service that will allow you to select the best possible plan for yourself and your family.

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