Whether you are shopping for an insurance policy or you’re already one of our customers, it is important for you to understand the different types of coverage that make up an auto policy. Automobile insurance is really a package of four primary coverages; Liability coverage, Auto Medical Payments, Uninsured Motorists coverage and Coverage for Damage to Your Auto. These coverages make up an auto policy. Each of these coverages has its own separate premium and coverage, as well as limits and deductibles and with some optional in Texas. Your premium payment is the total of these separate premiums.
Bodily Injury and Property Damage Liability Covers losses you are held accountable for in an auto accident for injury to others or damage to their property.
Medical Payments (Med Pay) or Personal Injury Protection (PIP) cover your medical expenses as well as passengers in your car if the expenses are a result of an auto accident. PIP extends beyond Med Pay and provides coverage if you are injured by a vehicle as a pedestrian. It also provides for coverage for lost wages and transportation expenses incurred for medical treatments. PIP is often called a “no-fault” coverage because it is designed to pay claims regardless of who is at fault in an accident. PIP is available in some states. In Texas, a policyholder may choose to “opt-out” of this coverage.
Uninsured Motorists Coverage is available in 3 forms. Uninsured Motorists Bodily Injury pays for injuries you or your passenger(s) received in an auto accident caused by a driver who does not have auto liability coverage. Underinsured Motorists Bodily Injury provides additional coverage for your injuries when the at-fault party does not have enough insurance. Uninsured Motorists Property Damage coverage provides coverage for damage caused to your vehicle by an uninsured motorist.
Coverage for Damage to Your Auto may include Comprehensive physical damage coverage and Collision coverage. Collision coverage applies to losses to your vehicle that are caused when your vehicle collides with another vehicle or fixed object. Collision coverage is only available when Comprehensive coverage is afforded. Comprehensive coverage (sometimes known as Other Than Collision Coverage) applies to losses to your vehicle by perils other than collision. For example, comprehensive insurance covers damage to your car if it is stolen, or damaged by flood, fire or animals. Some other coverages that are available to you when Comprehensive coverage is written are:
Rental reimbursement that pays for a rental vehicle when the insured's vehicle is out of commission as a result of a loss covered under comprehensive or collision coverage.
Towing and Labor coverage pays for road service and towing, if your vehicle becomes disabled.
* For full details on your coverage(s), always refer to your policy, or call us and our Texas Friendly staff will be more than happy to go over your coverage with you.