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Auto Insurance Made Easy For Austin
Understanding insurance can often be like trying to learn a foreign language
. Many find it confusing and intimidating. Fortunately, theres help. Here is a quick reference designed to help you understand some of the most common kinds of coverages for Texas Auto Insurance.Liability covers bodily injury and property damage to others (BI/PD). This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident. In Austin, TX, liability insurance is mandatory.
Under BI/PD, your insurance company pays for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If your insurance policy covers you in the event youre sued after an accident, your insurance company will pay for a lawyer to defend you.
Liability limits generally appear as three numbers, for example, 25/50/25 or 100/300/100. The first number refers to the maximum amount, in thousands, that your insurance company is obligated to pay for bodily injury per person. The second number is the maximum that would be paid out for bodily injury per claim and the third number represents the maximum amount your insurance company is obligated to pay for property damage you cause.
Uninsured / Underinsured Motorist Protection covers any damage caused to you when another party is responsible for the accident, but this third party does not have insurance. In this case, your insurance policy will assume the responsibility of the uninsured driver for up the policy limit. The policy limit for uninsured motorist protection is usually the liability limit set in your auto policy or less. In Texas, uninsured motorist can be rejected by the named insured.
Collision. When you buy collision coverage, your insurance company pays for damages if your vehicle collides with another vehicle or object. Collision coverage involves a deductible amount you select when you purchase your policy. This amount is what you are required to pay before your insurance company starts picking up the tab. Remember, the deductible amount is the amount you need to pay in the event of a claim.
Comprehensive covers damage caused by events other than a car collisionsuch as fire, theft, vandalism, hail or flood. It also covers damage caused by your vehicle colliding with an animal. And if your car is stolen, it will cover the cost of a rental, subject to a daily limit. Like collision coverage, a deductible usually applies.
Medical Coverage. In Austin, TX Medical Payments coverage or Personal Injury Protection (PIP) coverage are available. While these both work differently, they provide coverage for medical care provided to you as a result of a car accident.
Personal Injury Protection or PIP, covers for any personal injury caused to yourself regardless of fault. In Texas, the limits is usually set at $2,500 per person, but depending on the insurer, this limit may be higher. Personal Injury Protection can cover lost wages for up to 80%.
Other Available Coverage in an insurance policy is rental car reimbursement and towing. Some companies offer roadside assistance which conditions may vary by company.
by: Jesus R. Olivares