Auto Insurance
Auto insurance is coverage offered by the insurance company, consisting of many parts. Texas law requires all auto owners/drivers to maintain valid insurance coverage in order to be compliant with all Texas traffic laws. Coverage protects the vehicle, drivers and passengers in the event of an accident. A deductible payment is usually required by the policyholder before coverage from the company is approved. If there is a loan on the vehicle, it is required by law to maintain full coverage on the vehicle, in addition to standard liability coverage.
Liability coverage
Liability coverage is in place to protect the vehicle and passengers in the OTHER vehicle. This means that in the event of an accident, and you are found at fault, your liability coverage will kick in and the OTHER car and its passengers will be covered for damages and medical expenses. Property damage liability covers the other vehicle or other property damaged in the accident. Bodily injury liability covers the medical expenses for the passengers of that vehicle.
Collision
Collision coverage is in place to protect your vehicle in the event of an “at fault” (your fault) accident. A deductible is usually required before the insurance company will approve of repairs, unless the policyholder has opted for a $0 deductible. THIS COVERAGE IS THE FIRST PART OF FULL COVERAGE
Comprehensive
Comprehensive coverage is in place to protect your vehicle from elements out of human control, such as hail, theft, fallen tree branches, etc. A deductible is usually required for this coverage as well. THIS IS THE SECOND PART OF FULL COVERAGE
Personal Injury Protection
Personal Injury Protection covers you, as a driver, and your passengers for bodily injury in the event of an “at fault” accident. It covers a portion of hospital bills and can also be used to supplement lost income as a result of the accident. This is required by the State of Texas, but you are able to opt out with a signed waiver.
Rental Car Reimbursement
Rental Car Reimbursement provides you with a rental car in the event of an accident. If your vehicle is damaged in a covered accident, and needs to be repaired, insurance will cover the cost of a rental car up to a pre-determined amount. The extent of this coverage depends on individual insurance companies and is not standardized by the Texas Department of Insurance. This does NOT cover a rental car on vacation.
Roadside Assistance
Roadside Assistance provides you with assistance in the event of a flat tire, tow needs, keys locked in your car, etc. The extent of this coverage depends on individual insurance companies and is not standardized by the Texas Department of Insurance.