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Click Here To View Glossary of Auto
Insurance Terms
Auto insurance pays for damages, injuries, and
other losses that are detailed in your policy. Depending on the type of
coverage, auto insurance can either pay for your damages or another driver’s
damages, or a passengers damages.
The most common types of auto insurance are:
LIABILITY pays for damage caused by you to another person or
another person's vehicle or other property as a result of an automobile
accident. Types of liability coverage include:
 | Bodily
Injury (BI) If you injure someone in an auto accident for which
you are legally to blame, this coverage will pay claims for injury or
death against you and the cost of legal defense.
Please keep in mind that you are responsible for any amount of a
covered loss that exceeds the amount of insurance coverage you purchase;
therefore we highly recommend you consider securing higher limits of
bodily insured auto liability coverage to protect your personal assets in
the event of a large liability settlement or a count renders a judgment
for a dollar amount that exceeds your policy limits. We would highly
recommend you request a quote for a Personal Umbrella Liability
Policy as recent court judgments to claimants for wrongful death , pain
& suffering due to injuries , medical expenses , and/or loss of income due
to a negligence of another party have been substantial.
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Property damage (PD) pays for damage that you cause to someone
else's vehicle or property for which you are legally liable. This does not
cover your car or property.
Please keep in mind that you are responsible for any amount of a
covered loss that exceeds the amount of insurance coverage you purchase;
therefore we highly recommend you consider securing higher limits of
property coverage to protect your personal assets in the event of a large
liability settlement or a court renders a judgment for a dollar amount
that exceeds your auto property damage policy limits due damages you cause
to someone else's property. Accidents involving
multiple automobiles, high valued automobiles, or commercial vehicles may
result in substantial losses that exceed coverage limits available under a
standard Texas auto policy so we would highly recommend you request a
quote for a personal Umbrella Liability Coverage.
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Medical payments pays for medical, hospital or funeral expenses
for you and others injured or killed while riding in your car, regardless
of fault. It also covers you and family members if struck by a car as a
pedestrian or if riding in another car. |
PHYSICAL DAMAGE pays for a loss resulting from damage to your
vehicle or a vehicle operated by you. Physical damage also provides coverage
if your vehicle is stolen. Types of physical damage coverage include:
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Collision pays for damage to your car from an accident
regardless of fault. It usually includes a deductible and the insurance
company pays the rest. Selecting a larger deductible can lower your
collision premium.
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 | Other
Than Collision (Comprehensive) pays for damage to your car caused
by most anything other than a collision. Glass breakage, theft, fire,
explosion, impact with an animal, vandalism and flood are some of these
hazards. This coverage is also available with deductibles to lower your
premium. |
OTHER COVERAGE Other types of auto coverage include:
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Uninsured Motorists (UM) Unfortunately, not everyone purchases
auto insurance. If you or your passengers are injured by someone who does
not carry auto insurance, UM coverage will pay for injuries up to your
policy limits. This includes medical expenses, loss of wages, and related
expenses. UM coverage also applies if you are a victim of a hit-and-run
driver.
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Underinsured Motorists (UIM) Just as some drivers don't carry any
auto insurance, other's don't carry enough to pay for damages from their
accidents. UIM coverage pays for death and injury expenses to you or
occupants of your car when the other person's insurance is inadequate. |
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Personal Injury Protection (PIP)) Coverage pays for medical
expenses and 80% of lost income, regardless of who is at fault in the
accident. It also pays for assistance with personal services you are
unable to perform because of an auto accident. You, your family members,
and your injured passengers are covered under PIP. Insurance; insurance companies
must offer to sell you PIP coverage (and Uninsured Motorist Coverage)
along with your liability coverage. If you decide not to purchase PIP, you
must reject it in writing. PIP coverage is available at limits of $2500
and up. |
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Rental Reimbursement pays for the cost to rent an
automobile up to the daily and total maximum amount of coverage you
purchase ;up to your available policy limits; while your vehicle
is being repaired or replaced should a total loss occur from damage or
theft. |
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Towing pays for the cost have your vehicle towed to a
repair shop ; up to your per select policy limit; by a wrecker service
should you automobile be damaged under your policy for a covered loss.
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