Type of car insurance coverage
Understanding what your auto insurance actually covers can help you make smarter decisions about protection, limits, deductibles and optional coverage.
Your policy is more than just a premium.
Auto insurance is made up of different coverages designed to financially protect you when you are involved in an accident or your vehicle is damaged. Some coverage may be required, while other coverage can provide valuable additional protection.
Six Common Auto Insurance Coverages
Liability Coverage
Liability coverage helps protect you financially when you are responsible for an accident that causes injury to another person or damage to someone else's property. It generally includes two important components.
Uninsured & Underinsured Motorist Coverage
Not every driver on the road carries enough insurance. Uninsured motorist coverage may help when you are hit by a driver who has no insurance. Underinsured motorist coverage may help when the other driver's liability limits are not enough to cover your resulting expenses.
Don't only ask, “How much does it cost?”
A better question is: “What happens if something goes wrong?” The right combination of liability limits, deductibles and optional coverage can make a significant difference when you actually need your policy.
Comprehensive Coverage
Comprehensive coverage may help pay to repair or replace your vehicle when it is damaged by a covered event other than a collision. Examples can include theft, fire, hail or vandalism.
Collision Coverage
Collision coverage may help pay to repair or replace your vehicle when you are involved in a collision with another vehicle or hit an object, such as a fence or other structure.
Like comprehensive coverage, collision coverage generally includes a deductible. It may also be required by a lender or leaseholder.
Medical Payments Coverage
Medical payments coverage may help pay for medical expenses resulting from an auto accident for you and eligible passengers, depending on the policy and state requirements. Covered expenses may include hospital visits, surgery, X-rays and other medical treatment.
Personal Injury Protection
Personal injury protection, or PIP, is available only in certain states. When available, it may help pay medical expenses after an accident and may also provide benefits for other costs related to an injury, such as lost income or childcare expenses.
Other Auto Insurance Coverage to Consider
Depending on your situation and the insurance company, you may be able to add additional coverage to your policy.
The right coverage depends on you.
There is no one-size-fits-all approach to auto insurance. Where you live, how you use your vehicle, what you drive, your financial situation and your comfort with deductibles can all influence which coverage makes sense.
Compare apples to apples.
When comparing auto insurance quotes, make sure you are comparing the same or similar coverage limits, deductibles and options. A lower premium may look attractive, but it may also come with less protection.
Review Your Texas Auto Insurance.
Let Tran & Lee Insurance Agency help you understand your options, compare available coverage, and choose protection that fits your needs.
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