If You Wreck, Will You be Covered?
Car insurance coverage can be tricky; there are a lot of terms to understand and when those prices keep going up, it’s tempting to cut the coverage and save a few bucks. In this article the Car Crash Captain lays out the important aspects of car insurance coverage, detailing what covers you and what covers others.
This isn’t comprehensive coverage of car insurance but a refresher to ensure you’re not accidentally missing something. Be sure to talk with your insurance agent to make sure you’re getting the best deal, and the best coverage.
Liability Only vs Full Coverage
If you ask someone what kind of coverage they have on their vehicle, they’ll tell you either liability only, or full coverage. Beyond that, most people don’t really know what their coverage entails. Even more so, many of people don’t even know what these terms actually mean.
Liability only means that if you’re in a wreck, and you’re at fault, the liability transfers to the insurance company – you’re not liable for what happens up to a certain amount (for damages to the other person; it does not cover your own damages). The minimum legally allowed limits are still pretty low in Texas; $30,000 (per person, up to $60,000 per accident) for injuries and $25,000 for property damage. That means if you hit someone and total their $80,000 truck and cause $50,000 in injuries – you’ll personally be liable to make up the amount above what your coverage limits state. Liability doesn’t cover any damage to your own vehicle.
Full coverage includes liability as well as comprehensive and collision coverages – these kick in to help repair or replace your own vehicle if something happens and you’re deemed at fault.
Comprehensive and Collision Cover Costs
These two can get a little confusing, because there’s some overlap in how we process through them.
Comprehensive coverage kicks in when you can’t quite comprehend how or why your vehicle is damaged. If you park outdoors, and get hit with a hail storm, your comprehensive coverage pays to have your rig fixed. If a tree falls on your car, comprehensive kicks in. Theft, vandalism, and even striking a wild animal on the road – all covered with the comprehensive part of your policy (there may be exclusions, so talk with your agent to ensure everything’s covered).
Collision coverage kicks in when you collide with something (except for wild animals – that’s the overlap bit we mentioned). If you’re driving and you hit another vehicle, a curb, a tree, a building, or really just about anything else – and you’re found at fault – the collision coverage kicks in to have your vehicle repaired (liability will kick in to repair the other party’s property).
You are, however, on the hook for your deductible; we’ll cover that soon.
Uninsured, Underinsured, Otherwise Insured?
In Texas, insurers are required to offer uninsured or underinsured motorist coverage, but the buyer can decline it. It’s tempting to save a little money by passing on this coverage, but it’s definitely not something you want to skip out on.
These coverages help pay for your hospital bills if you’re hit by a driver that doesn’t have insurance, or bought the cheapest policy possible and your injuries exceed their limits. Considering that at least 20% of Texas drivers go without insurance (that’s 1 in every 5 cars you pass on the road, so hundreds or thousands every single day), you definitely need this car insurance coverage.
There’s one big misconception. These coverages normally only cover injuries – they don’t do anything to help repair or replace your property. To cover your vehicle’s damage, you generally need uninsured/underinsured motorist property damage coverage (UMPD), which you may need to request specifically, as it is not always included automatically.
Medical Payments or Personal Injury Protection?
Medical payment (MedPay) and Personal Injury Protection (PIP) are not required by Texas law, but they might be a good idea to keep on your policy.
MedPay helps to cover hospital expenses to you, or your passengers, regardless of fault. While the liability coverage should kick in, if things get tangled up in court determining who is at fault, those medical bills can rack up for quite some time before anything is resolved. Read more about MedPay and what kind of coverage you might need.
PIP helps cover other expenses – such as lost wages, additional expenses incurred because of the wreck, modifications to the home, etc. Like MedPay, it just kicks in and pays even if your case hasn’t fully been settled yet. Read more about PIP and what kind of coverage you might need.
How You Pay: Deductibles and Premiums
Finally, let’s talk money.
You pay for your insurance and repairs two ways: through premiums and deductibles.
Your premiums are the regular payments you make to maintain your car insurance coverage. Any time you add coverage or increase limits, the premiums go up (because the more the insurance company might pay out, the more they have to charge for taking on your risk). Premiums have a host of factors including your age, the value of the vehicle, driving history, credit score, and more – not all insurance companies treat these factors equally, which is why it’s often a good idea to get quotes from multiple reputable companies.
The deductible is the amount that you have to pay if your comprehensive or collision coverages are used. So, if you crash into a tree, and there is $10,000 worth of damage to your vehicle, and your deductible is $500, then you pay $500 and the insurance company pays $9,500. You can lower your premiums if you increase the deductible – it might be worthwhile to see if a $250 deductible is worth paying extra vs a $500 or $1,000 deductible.
Some insurers offer premium discounts, so be sure to ask what you can do to maximize those.
Herbert Law Group is on Your Side After a Wreck
There are many (many) more terms and moving pieces to your insurance policy; your best course of action is to discuss it with your insurance agent to find the right mix that fits your budget.
If you are in a wreck, and you were the victim, then it’s the other party’s insurance that will kick in and take care of things. Their policy should repair or replace your vehicle, and their policy should cover your hospital bills, lost wages, modifications to your home, and emotional damages.
Most of the time, their insurance doesn’t want to pay out. They’ll offer settlements that are far below what you really need, and if you accept, then you end up losing out. That’s why you need Herbert Law Group.
We are on your side. We will fight to ensure you get the maximum compensation allowed, so you can focus on recovering instead of fighting for justice. Let’s chat about what happened and see how we can help. Call our offices at 214-414-3808, or fill out the contact form on our site and we’ll be in touch.