Auto Insurance
Auto Insurance
Auto insurance protects you financially by paying the other driver’s car repair and medical bills if you cause an accident. Depending on the kind of coverage you have, it can also pay to repair or replace your car if it’s damaged or stolen.
Is Auto insurance required?
Texas law requires drivers to show proof they can pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver’s car, or other damaged property, and pays other people’s medical expenses when you’re at fault in an accident.
If you still owe money on your car, your lender will require you to have collision and comprehensive coverage.
Types of Auto Coverages
There are eight basic auto insurance coverages. You can choose whether to buy the others.
Liability coverage pays to repair the other driver’s car if you caused the accident. It also pays the other driver’s and his or her passenger’s medical bills and some other expenses. Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage.
- Collision coverage pays to repair or replace your car after an accident.
Comprehensive (other than collision) coverage pays if your car is stolen or damaged by fire, flood, vandalism or something other than a collision.
Medical payments coverage pays your and your passengers’ medical bills. It also pays if you’re hurt while riding in someone else’s car or while walking or biking.
Personal injury protection (PIP) coverage is similar to medical payments coverage. It pays your and your passengers’ medical bills. But it also pays for things like lost wages and other nonmedical costs. All auto policies in Texas include PIP coverage. If you don’t want it, you must tell the company in writing.
Uninsured/underinsured motorist coverage pays if you’re hit by someone who didn’t have insurance or didn’t have enough to pay your medical and car repair bills. It also pays if you’re in a hit-and-run accident. Insurance companies must offer you this coverage. If you don’t want it, you must tell the company in writing.
Towing and labor coverage pays to tow your car if it can’t be driven. It also pays for labor to change a flat tire or jump-start your battery.
Rental reimbursement coverage pays for you to rent a car if yours is stolen or being repaired after an accident. Some policies also pay for taxis or ride-hailing services.
Think about buying more liability coverage. The minimum liability limits might be too low if you cause a multi-vehicle accident or the other driver’s car is totaled. If you don’t have enough liability coverage to pay for the damages and injuries you cause, you might have to pay the rest out of your own pocket. The other driver could sue you.
Who’s covered?
Most policies cover you, your family, and people driving your car with your permission. Ask your agent or read your policy to know who your policy covers and if anyone is excluded from coverage.
What does my policy cover?
Coverages vary by policy and depend on the types of coverages you choose. This table shows some of the things most policies do and don’t cover. Read your policy or talk to your agent to be sure of your exact coverages.
Most policies cover:
Most policies don’t cover:
Coverages vary by company. Read your policy or talk to your agent to be sure of your exact coverages.
What happens if I buy a new car? Is it covered?
If you get a new car, your current insurance will automatically cover it for about 20 days. The type of coverage depends on whether the car is an additional or replacement car.
- An additional car gets the same coverage as the car with the most coverage on your policy.
- A replacement car gets the same coverage as the car it replaces on your policy.
Tell your company about a new car as soon as you can to avoid a lapse in coverage.
Am I covered if I’m driving someone else’s car?
I’m driving into Mexico, am I covered?
Mexico doesn’t recognize American auto policies. Some companies offer endorsements for short trips into Mexico, but the coverage might not meet Mexico’s legal requirements. If you’re driving into Mexico, you should buy a Mexican liability insurance policy. Some Texas agents sell them. Your agent might be able to help you find an agent who does.
Deductibles and Dollar limits
You must pay a deductible for collision, comprehensive, and uninsured/underinsured motorist claims. A deductible is the amount of a claim that you must pay yourself. For instance, if you have a $1,500 collision claim and your policy has a $500 collision deductible, the insurance company will deduct $500 from your claim amount and pay you $1,000. You don’t have to pay a deductible for claims against another driver’s insurance company.
Liability, personal injury protection, uninsured/underinsured motorist, towing and labor, and rental coverages have dollar limits. This is the most the company will pay, even if the cost is higher. If you don’t have enough coverage, you’ll have to pay the difference yourself. Collision and comprehensive coverages don’t have dollar limits.
The first page of your policy is the declaration page. It has a summary of your policy, including your coverages, dollar limits, and deductibles.
Auto insurance for young drivers
You have two options for covering your young drivers. You can add them to your policy, or you can buy a separate policy for them. Adding them to your policy is usually cheaper.
Some companies require you to put everyone who lives with you and is of driving age on your policy. Tell your company when someone in your family starts to drive or turns 16. If you don’t tell the company, and the company learns about them later, the company will bill you for the extra premium you should have paid. The company also might deny any claims you have or choose to not renew your policy.
If a teenager is the main driver of a car, the company will base the premium on that car. Otherwise, the company will base the teen’s premium on the car in the family with the highest rate.
How do companies decide what to charge me?
Insurance companies use a process called underwriting to decide whether to sell you a policy and how much to charge you. The amount you pay for insurance is called a premium.
Most companies consider these things when deciding your auto insurance premium:
Your driving record and claims history. Insurance companies will charge you more if you’ve had accidents or gotten tickets. Some companies might refuse to sell you a policy.
Where you keep your car. Rates are higher if you live in a city. This is because people in cities are more likely to have accidents or have their cars stolen than people in rural areas. Rates can also vary between ZIP codes in the same city.
The kind of car you have. Collision and comprehensive rates are highest for luxury, high-performance, and sports cars. Rates are also higher for cars that cost more to repair.
How you use your car. Your rates will be higher if you drive your car to and from work or use it for business.
Your credit score. Some companies use your credit score to decide what to charge you. Insurance companies check your claims history.
Most companies use the Comprehensive Loss Underwriting Exchange (CLUE) to learn your claims history. A company can charge you more or refuse to sell you a policy based on the information in your CLUE report.
Saving money on your insurance
Discounts help lower your premium. Each company decides what discounts to offer and the amount of the discount. You might be able to get a discount if you have:
- Airbags, antilock brakes, and antitheft devices in your car.
- Completed a defensive driving or a driver education course.
- More than one car on a policy.
- Other policies with the same insurance company.
- No claims and a good driving record.
Auto claims
To help make the claim process go smoothly, follow these tips:
Write down the exact name of the other driver’s insurance company, the company’s phone number, and the policy number. To save time, take a picture of the other driver’s insurance card. If the other driver refuses to tell you the name of his or her insurance company, call the police.
Give this information to the insurance company. Independent witnesses can help prove fault if you were in an accident caused by another driver. If you don’t have witnesses and the other driver denies fault, his or her insurance company might deny your claim.
Your uninsured motorist coverage won’t pay for a hit-and-run accident if you didn’t report it to police.
Also record any special circumstance like weather and road conditions. Take pictures of the accident scene. Give this information to the insurance company.
Most companies have deadlines for filing claims. Your insurance card should have a number you can call to report claims. Explain what happened and answer questions as thoroughly as possible.
It usually takes a few days for the police officer to file a report. Get the officer’s name and badge number so you can follow up if you need to.
Tell the company if you were injured. If you went to the emergency room or to a doctor, give the company copies of the medical reports and doctors’ bills.
In all scenarios, Champion Family Insurance highly recommends opting for bodily injury and property damage limits that surpass the minimum requirements set by the state. Our goal is to ensure your security by offering enhanced coverage options that go beyond mere compliance. As part of this commitment, we propose additional protective measures such as uninsured and underinsured motorist coverage. This crucial coverage guarantees your safeguarding even if you find yourself in an unfortunate situation where the other driver lacks adequate insurance coverage.
When it comes to safeguarding your vehicle, our offerings extend to encompass collision and comprehensive coverage. These options are tailored to manage the costs of repairs for covered damages, satisfying not only your protection needs but also adhering to the prerequisites of lenders and financial institutions.
Going beyond standard provisions, we also introduce the possibility of Personal Injury Protection (PIP) coverage. PIP stands as a vital shield, providing insurance coverage that takes care of medical expenses, lost income, and various financial setbacks resulting from injuries sustained in a car accident. It’s important to underline that PIP goes the extra mile by encompassing your passengers’ well-being as well. In the unfortunate event of an accident, PIP ensures that medical expenses for your passengers, if they sustain injuries, are also included in this comprehensive safety net.
Personal Injury Protection (PIP)
In the state of Texas, PIP coverage is a legal requirement. Nonetheless, recognizing the diverse circumstances our clients face, Champion Family Insurance grants the option to make an informed choice through a waiver that would exclude this coverage. However, it’s crucial to contemplate the potential ramifications of forgoing PIP coverage. Opting out of PIP could expose you to vulnerability in scenarios involving substantial injuries resulting from a car accident. This decision could potentially result in daunting medical expenses and income loss, both of which could accumulate into the thousands.
Beyond its financial security attributes, PIP coverage serves as an avenue of relief when urgent circumstances arise. Rather than grappling with mounting bills and uncertainty while waiting for the resolution of a lawsuit or insurance settlement, PIP steps in to provide immediate assistance. It assures that your essential needs are met promptly, alleviating the strain caused by unforeseen accidents. Your well-being and financial stability remain Champion Family Insurances’ paramount concern, and PIP stands as a prudent choice to navigate the uncertainties that can arise on the road.
Auto Insurance
At Champion Family Insurance, customizing the best combination of coverages to meet your needs and the state requirements is our priority. So, get a car insurance quote today from Champion Family Insurance to ensure you have the protection you need on the road, so you and your family can drive with confidence knowing you have the best possible coverage at the best possible price.