AUTO INSURANCE

Auto Insurance

Texas law requires all drivers with cars registered in Texas to carry the following minimum auto liability insurance coverage/

• $30,000 in bodily injury liability coverage (per person);
• $60,000 in bodily injury liability coverage (per accident); and
• $25,000 in property damage liability insurance.

Contrary to what many people believe, UM insurance is optional, not mandatory, in Texas. It seems mandatory, though. When you are purchasing mandatory liability insurance in Texas, state law requires the insurance company to offer you at least $30,000 in UM/UIM insurance.

If you don’t respond to the offer, your policy will include UM/UIM. The only way you can decline coverage is through a written rejection of coverage filed with the insurance company.

There are several “pros” of UM/UIM insurance, as outlined below.

YOU’RE COVERED WHETHER OR NOT THE AT-FAULT DRIVER HAS EFFECTIVE LIABILITY INSURANCE

In Texas, about 8% of all drivers are underinsured. That doesn’t necessarily include drivers who are uninsured for situational reasons, such as:

• The driver deliberately causes an accident in a “road rage” incident; or
• The driver is driving the vehicle without the permission of its owner.

The insurance covers you, your family members, passengers, and anyone driving your car with your permission.

YOU CAN PURCHASE UM/UIM INSURANCE FOR PROPERTY DAMAGE

UM/UIM policies can protect you against property damage. This is especially important if you own an expensive car. Texas’s $25,000 minimum property damage liability insurance might not be nearly enough to compensate you all by itself.

UIM INSURANCE PROTECTS YOU WHEN THE AT-FAULT DRIVER’S INSURANCE IS INSUFFICIENT

The difference between UM and UIM (uninsured and underinsured, respectively) is as follows:

• “UM” insurance protects you when you suffer an accident in which no insurance resources are available. The at-fault driver might lack insurance, or you might not be able to locate them.
• UIM insurance protects you if the at-fault driver’s insurance coverage is insufficient to pay for all of your damages.

Ultimately, each type serves to protect you from a similar type of scenario.

Special features of UIM insurance

If the at-fault driver carries only minimum liability insurance, for example, it won’t be enough to cover your injuries if they exceed $30,000. UIM can help supplement your insurance resources in a situation like this.

Although the minimum available insurance pays only up to $30,000, you can buy a policy with higher limits that should cover your damages for all but the most catastrophic injuries.

UM PROTECTS YOU IN HIT-AND-RUN ACCIDENTS

It doesn’t matter whether the at-fault driver carries liability insurance if they flee the scene of the accident and you cannot locate them. UM insurance treats this situation the same way it would treat an accident with an at-fault but uninsured driver.

UM/UIM INSURANCE OFFERS FULL PERSONAL INJURY DAMAGES

Both UM and UIM offer you the same types of compensation that you would receive if you filed a personal injury lawsuit (subject to policy limits, of course). Compensation can include:

• Past, present, and future medical expenses;
• Lost earnings;
• Diminished earning capacity;
• Out-of-pocket expenses;
• Pain and suffering;
• Emotional distress and;
• Loss of enjoyment of life.

You can also seek compensation for any other tangible or intangible loss that arose directly from your accident.

PERSONAL INJURY PROTECTION coverage in Texas pays for you and your passengers if you're in a car accident that results in injuries, no matter who is at fault. PIP covers:

• Reasonable medical costs, including necessary surgeries, X-rays, dental or eye treatments, medical procedures, prosthetic devices and professional nursing
• Ambulance services
• Rehabilitation therapy
• Funeral services
• Lost income resulting from the accident
• Replacement of necessary services provided by the injured party, such as family care or household maintenance, if the injured person is not an income producer

Texas requires insurance companies to offer every driver at least $2,500 of PIP insurance. You can typically increase your coverage to $5,000 or $10,000 if you want additional financial protection. The policy limit, which extends to each person injured in an accident, refers to the total amount your insurance will pay per person.

You do have the option to decline coverage, but you'll have to submit your refusal in writing, and being without PIP could leave you and your loved ones footing some serious medical bills if you're ever in an accident.

There are two important reasons to obtain insurance:

• Texas laws mandate that drivers must be able to pay for losses they cause others. Insurance provides the confidence that an accident will not leave you alone to cover costly property and medical expenses.
• Prior to extending a car loan, lending institutions will require insurance that will cover damage to your vehicle.

There are two types of insurance for these circumstances:

• Collision insurance pays for any repairs needed for your vehicle after an automobile accident, up to the fair market value of your car.
• Comprehensive insurance pays for other types of damage done to your car, such as by theft, vandalism, or natural disasters (e.g., flood, hurricane, tornado, fire), up to the fair market value of your car.

Contact CenTex Insurance to find out how we can help you with your strategic objectives.
Our team is standing by to help you.