How does your auto insurance compare to the what’s available? Let’s face it, if you’re like most people, you want great rates; right? The problem is that reality is far different in many cases. In order to make sure you get the right rates, and the best protection, we explore your options and compare your policy to the competition.
The Office of Public Insurance Counsel has a comparison tool to help you understand the categories you should consider. This tool will help you understand why company X can advertise with a cartoon character and offer low rates. Coverage matters most. Let’s look at a few differences, that way you understand why this is true.
Bodily Injury and Property Damage Liability
Coverage under liability applies to injuries and damage to property caused by you or another covered driver. In this case, you are legally liability for causing an accident. It may surprise you to find that there are a few noticeable differences between covered drivers on Texas Auto policies.
A good example is the way insurance companies handle liability claims on Temporary Substitute Vehicles. This could be a rental car, or it could be a car borrowed from a friend while on a trip. Some companies cover a temporary substitute auto for any reason in which you are liability. Other companies limit this coverage to cases involving breakdowns, repair, loss, or destruction. So no coverage on the trip.
Liability Permissive Drivers
Coverage for drivers that have permission is another place in which some insurance policies differ. Odds are, if you purchased your car insurance from a place that offers a 1 month or 3 month auto insurance policy, you could have a coverage gap. Some insurance policies only cover drivers that are listed in the policy; while unlisted drivers have no coverage, even in emergency cases.
How can you tell if you have exclusions or reduced coverage for unlisted drivers? Get your ID card and look for the wording that doesn’t look right. Texas insurance companies are required to list excluded drivers on your ID Card.
Uninsured Motorist and Personal Injury Protection
Uninsured motorist (UM) coverage will reimburse you, or a covered driver if hit by an uninsured or hit-and-run driver. Personal Injury Protection (PIP) pays for reasonable medical related expenses as well as lost income. These protect you, personally. Quite frankly, this is where many consumers cut corners. Before, you get worried, check your most recent declarations page or renewal.
If you notice the words “rejected”, “refused”, or “not covered”, then you probably signed or initialed something in writing. That’s the only way to remove UM and PIP. Now you have to ask yourself, “If I am injured in an accident, how much cash do I have saved?” Without UM and PIP, you could wind up paying the first $5000 in medical expenses out of pocket. Ahem, remember your Obamacare deductible?
In the end, the lowest rate is not always the best rate. Coverage matters most. Financial protection should is more than just getting it cheap and fast. If you’re like most people, you want coverage when it matters. Regardless of the type of car insurance, the pennies you save on the month premium, could cost you thousands after a claim. 30 days prior to your next renewal, review your coverage and your company. If you’re paying for car insurance, get the biggest bang for your buck and with the coverage you need and deserve.