Car Insurance Texas

Here at Citizens Insurance Agency we want our clients to fully understand the meaning of the coverage they purchase.  To get a better understanding of the fundamentals of insurance and to better educate the common consumer, we’ve compiled what we feel like are the 8 ground rules for Texas car insurance.

Liability.  Liability is the state mandated coverage that we all must carry. It pays for damages done to others.  This means medical and funeral costs, car repair, rental car (if needed),  and punitive damages.  The state minimum in Texas is currently 30/60/25. 

In addition to Liability, there are 2 other state mandated coverage’s, which without a rejection form, have to be purchased.  These are Medical Payments and Personal Injury Protection (PIP).  These are beneficial to you, the driver.  Both of these coverage’s are intended for medical and funeral expenses resulting from an accident.

Next in the long line of insurance terms is Uninsured/Underinsured Motorist Coverage.  Most of the time you will see this represented as UM/UIM.  This is for the many instances when someone rear-ends our nice shiny car and they either don’t have insurance or the insurance they have is not adequate.

Now for your vehicle.  When we get into an accident we obviously are concerned about the other party, but also for our own well being and the well being of our car!  This is where Comprehensive and Collision enter the picture.  After your liability insurance pays for the other person involved in the accident, you will rely on Comprehensive or Collision to pay for the repair of your car. 

Comp and Collision are usually required coverages whenever you have a lienholder (a bank or mortgage company that finances your automobile).  Most people don’t realize this, but if someone forgets to put their lienholder on their car and then they total it, the money paid by the insurer legally has to go to the party that has the lien. 

Comprehensive coverage is what is done by the elements and thieves.  Sounds like an unusual way of remembering the specifics, but it works!  Hail, fire, and anything not related to Collision. 

These next two coverages are “extras”.  Towing and Labor pays for “charges when your car can’t be driven”.  Any kind of repair or work that is done on site (where the accident occurs) is covered under this.  

Rental Reimbursement is exactly what it sounds like.  When you have an accident or when it hails and your car is getting the dents removed, Rental Reimbursement will cover the cost of renting a car in the mean time. 

Considerations Before You Buy

• While high deductibles keep your insurance premiums low, you need to make sure that you can actually afford to pay the deductibles.
• Low limits also help to reduce your premium, but if the cost of your accident exceeds those limits, you will be responsible for meeting the liability.
• Insurance companies often offer discounts to policyholders for having anti-theft and safety devices in their vehicles and for taking driving classes.
• The claims process can vary by insurer, so when you get car insurance quotes, make sure the companies quoting you handle claims in a manner you are comfortable with.