Car Insurance 101

If you have been injured in a car accident, soon you will start to learn more about car insurance than you ever wanted to know. Here are a few of the more common terms or phrases you will come across:

• Liability Insurance-
  In Texas, it is mandatory to have this type of insurance which covers (or pays for) the damages caused to someone due to the negligence of the insured driver.
  
• Minimum Limits-
  Texas currently requires that each vehicle owner carry liability insurance coverage at least at $25,000 per injured person with a $50,000 limit per accident. This policy also provides coverage of $25,000 for damage to property.
  
• PIP or Personal Injury Protection-
  This is no-fault insurance which you can carry on your own car and it provides reimbursement to you and any passenger for lost wages and medical bills. In Texas, it is available in amounts from $2,500 to $100,000, depending on the insurance company.
  
• Med Pay-
  Is similar to PIP in that it is a "no fault" type of insurance that you purchase on your own. But it is a horrible type of insurance. It only covers medical bills (no wages) and if you also recover money from a third party, you must pay the Med Pay carrier back. So then your insurance company is basically loaning you the money. Since they charge you premiums your after year, this "loan" comes with a very steep price.
  
• Uninsured Motorists (UM)-
  This is insurance you buy yourself, which protects you and your car if the at-fault driver does not carry insurance. This is a great type of insurance to have.
  
• Underinsured Motorists (UIM)-
  Also insurance you buy which can compensate you if the at-fault driver does not carry enough insurance to fairly compensate you for your damages.
  
• Collision-
  This covers damage to your car no matter who was at fault. This is good to have if you have a one-car accident
  
• Coverage Other Than Collision-
  This type of no-fault insurance covers property damage to your car caused by things other than another driver. This covers hail damage, flooding, objects in road, etc.
  
• Rental Coverage-
  This is insurance you purchase which protects you in case you need a replacement vehicle on a short term basis; for instance, when your car is being repaired after an accident.
  

While these are the basic terms, many are words or phrases that come up in the course of a claim. If you have a question regarding a policy term, as it relates to your personal injury claim, please call us toll free at 877.294.1115 or feel free to Contact Us Online.

• What You Need to Know About Auto Insurance Coverage
• What You Need To Know About Personal Injury Protection (PIP)
• What You Need to Know About Texas Medical Payments Coverage (Med-Pay)
• Learn About Uninsured Motorist (UM) & Underinsured Motorist (UIM) Coverage
• Texas Insurance: Collision Coverage and Comprehensive (Other Than Collision)
• General Liability Coverage in Texas
• Gap Insurance in Texas
• Homeowners Insurance Coverage in Texas
• Mark's Recommendations on What Car Insurance to Buy