property damage coverage car insurance uninsured and underinsured

The Right Coverage Should Protect You

It’s illegal to drive without auto insurance. But there are studies that show that between 8% and 14% of drivers in Texas are cruising around without insurance on their vehicles.

If you’re in an accident with someone that doesn’t have insurance, you can sue them for damages. Of course if they’re going the cheap route and driving without coverage, they likely don’t have any assets that they can use to reimburse you for the loss.

When you do everything right, you can still end up being the victim because someone else is doing it wrong. That’s why we need to make sure to maintain the right insurance coverage before we hit the road.

Liability Insurance Coverage

Everyone needs to maintain at least liability insurance coverage. This is what protects you in case you mess up and damage someone else’s property. Essentially, it shifts the liability from you, to the insurance company.

State minimums insist on $30,000 coverage for injuries, and $25,000 for property damage. But if you total someone’s brand new luxury automobile, you’re going to exceed that $25k really quickly; so you might want to talk to your agent about increasing that amount.

Collision and Comprehensive Coverage

Collision and Comprehensive are added on to create “full coverage.” Collision coverage fixes or replaces your vehicle if you’re in a wreck and you’re at fault (that wreck could be colliding with a tree, a wall, or really anything other than an animal).

Comprehensive covers most things that are “other than collision.” These include theft, a fire, vandalism, or collisions with animals.

You will have a deductible for this aspect of your insurance, so a savings account that can pay at least the deductible is essential.

Uninsured/Underinsured Motorist Coverage

Because as many as 14% of drivers are out there without proper coverage, insurance have to add on uninsured or underinsured motorist coverage. The only way to get around this is if you inform them, in writing, that you don’t want it. But it’s a relatively small line item on your insurance, so you might as well keep it.

The UIM coverage makes sure that your hospital bills are paid if you’re hit by a driver that doesn’t have insurance or doesn’t have enough insurance to cover everything. What it often does not pay is to fix your vehicle (it varies by insurers, so check with your agent).

Uninsured/Underinsured Motorist Property Damage Coverage

To make sure that your vehicle is repaired or replaced after someone else wrecks into you (and if they take off, or they straight up don’t have insurance), you want to look into an uninsured or underinsured motorist property damage rider on your policy.

This specific coverage is just to pay for the property damage you otherwise would be stuck paying for out of pocket. It’s not an option with every insurer, and it’s rarely discussed in that insurance meeting. Depending on the cost, it might be an easy and cheap way to protect your personal property.

Other Coverages Included in Most Plans

Most plans will add on other little benefits for really cheap. They’re things like towing, rental car reimbursement, roadside assistance, and the like. Often they’re just a dollar or two per month, and can be a great benefit if you need them.