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Auto Insurance
Why is my premium different from my neighbor's?
Some of the major factors that affect auto insurance rates include:
- Driving record
- Age and gender
- Marital status
- Garaging address and zip code
- Type of vehicle
- How the vehicle is used
- History of prior coverage
- Credit score
What kinds of discounts are available?
The most common discounts seen with many companies include:
- Multi-policy discount - Having your home and auto insured with the same company.
- Multi-vehicle discount - Having more than one vehicle insured on the policy.
- Successful completion of driver education or defensive driving courses.
- Good Student discount
- Safety Devices discount - air bags, anti-lock brakes, etc.
- Anti-theft discount for having a car alarm.
What do all the coverage terms on my policy mean?
- Liability Insurance covers a claim against you for damage that you caused by hitting someone or their property. Limit refers to the amount of insurance you purchase and the maximum coverage that would be paid on a claim.
- Medical Payments (Med Pay) covers medical, surgical and funeral expenses for you and the passengers in your vehicle if you have an accident. The coverage amount is per person.
- Personal Injury Protection (PIP) covers medical, surgical and funeral expenses as well as lost wages for you and the passengers in your vehicle if you have an accident. The coverage amount is per person.
- Uninsured/Underinsured Motorist Coverage protects you if someone without auto insurance or without enough auto insurance hits you.
- Comprehensive Coverage covers your vehicle if your vehicle is stolen or sustains damage from something other than an accident, such as a hailstorm or flood.
- Collision Coverage covers your vehicle if you are in an accident. This coverage is intended to repair your vehicle to the condition it was in before the accident.
- Rental Reimbursement covers the cost of a rental car while your vehicle is being repaired as a result of a covered loss.
- A Deductible is the amount that you pay toward a loss under collision and comprehensive coverage. This amount is paid first, before your insurance policy provides coverage.
How much liability insurance do I need?
In Texas, the state law requires that you have minimum liability limits of $20,000/$40,000/$15,000. In Texas, you can purchase limits up to $500,000/$500,000/$100,000. You should discuss the amount you need with your independent insurance agent.
What do the above liability limits mean?
Each of the three limits represents the maximum amount that the insurance company will pay on your
behalf if you are found legally liable for damages to other people or other property.
1st number = Bodily Injury Damages per Person
2nd number = Bodily Injury Damages per Accident
3rd number = Property Damage per Accident
The Texas Department of Insurance provides a more detailed summary of auto insurance
here.
