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about auto insurance:
Liability Coverage Basic liability coverage meets the state’s financial responsibility requirement.

Pays: Other people’s expenses for accidents caused by drivers covered by your policy, up to your policy’s dollar limits. These may include the other person’s medical and funeral costs, lost wages, and compensation for pain and suffering

  • car repair or replacement costs
  • auto rental while the other driver’s car is being repaired
  • punitive damages awarded by a court.

    Liability insurance also pays your attorney fees if someone sues you because of the accident and bail up to 250 if you are arrested.

    Covers: You and your family members. Other people driving your car with your permission might be covered. You and your family members might be covered when driving someone else’s automobile – including a rental car – but not a car that you don’t own but have regular access to, such as a company car. Family members attending school away from home might be covered, as well as a spouse living elsewhere during a marital separation.

    Note: Some policies won’t cover other people, including family members, unless they’re specifically named in the policy. Your policy’s dec page should list the names of all of the people covered by the policy.

    Who qualifies as a family member?

    Generally, a "family member" is anyone living in your home related to you by blood, marriage, or adoption, including your spouse, children, in-laws, adopted children, wards, and foster children.

    Medical Payments Coverage

    Pays: Medical and funeral bills resulting from accidents, including those in which the other person is a pedestrian or bicyclist.

    Covers: You, your family members, and passengers in your car, regardless of who caused the accident.

    Personal Injury Protection (PIP) Coverage
    Pays: Same as medical payments coverage, plus 80 percent of lost income and the cost of hiring a caregiver for an injured person.

    Covers: You, your family members, and passengers in your car, regardless of who caused the accident.

    An insurance company must offer you 2,500 in PIP, but you can buy more. If you don’t want PIP, you must reject it in writing.

    Personal Injury Protection (PIP): An automobile insurance coverage mandated by law in some states. The statutes typically require insurers to provide or offer to provide first-party benefits for medical expenses, loss of income, funeral expenses and similar expenses without regard to fault .

    Uninsured/Underinsured Motorist (UM/UIM) Coverage

    Pays: Your expenses from an accident caused by an uninsured motorist or a motorist who did not have enough insurance to cover your bills, up to your policy’s dollar limits. Also pays for accidents caused by a hit-and-run driver if you reported the accident promptly to police. Bodily injury UM/UIM pays without deductibles for medical bills, lost wages, pain and suffering, disfigurement, and permanent or partial disability.

  • Property damage UM/UIM pays for auto repairs, a rental car, and damage to items in your car. There is an automatic 250 deductible. This means you must pay the first 250 of the repairs yourself.

    Covers: You, your family members, passengers in your car, and others driving your car with your permission.

    Insurers must offer UM/UIM coverage. If you don’t want it, you must reject it in writing. Collision (Damage to Your Car) Coverage

    Pays: The cost of repairing or replacing your car after an accident. Payment is limited to your car’s actual cash value, minus your deductible. Actual cash value is the market value of a car like yours without damages.

  • Comprehensive Physical Damage Other than Collision Coverage

    Pays: The cost of replacing or repairing your car if it is stolen or damaged by fire, vandalism, hail, or a cause other than collision. Comprehensive coverage also pays for a rental car or other temporary transportation if your car is stolen. Your policy won’t pay for an auto theft unless you report it to police. Payment is limited to your car’s actual cash value, minus your deductible.

    If you still owe money on your car, your lender will require you to have collision and comprehensive coverage. Towing and Labor Coverage

    Pays: Towing charges when your car can’t be driven. Also pays labor charges, such as changing a tire, at the location where your car became immobile.

  • Rental Reimbursement Coverage

    Pays: A set daily amount for a rental car if your car is stolen or is being repaired because of damage covered by your policy.

    Texas takes a reasonable, modern approach to regulation. A customer service survey conducted in 2004 by the University of North Texas found that insurers gave Texas favorable marks in creating a regulatory environment that makes the insurance industry want to do business in the state, regulating the industry fairly and effectively, and supporting an efficient industry. The survey also showed that insurer perceptions of the Texas regulatory environment have improved during the last decade. Regulators and the industry alike believe that the Texas insurance market is strong and getting stronger thanks to recent insurance legislation, especially in the following areas:

    Texas law requires people who drive in Texas to be able to pay for the automobile accidents they cause. Most drivers do this by buying automobile liability insurance. Liability insurance pays to repair or replace the other driver’s car and pays other people’s medical expenses. It does not pay to repair or replace your car or for your injuries. You must have at least the minimum amount of liability coverage required by the state’s financial responsibility law.

    The current minimum liability limits increased on April 1, 2008, to 25,000 for each injured person, up to a total of 50,000 per accident, and 25,000 for property damage per accident. This basic coverage is called "25/50/25" coverage. The limits prior to April 1 were 20,000 for each injured person, up to a total of 40,000 per accident, and 15,000 for property damage per accident.

    Because of car prices and the high cost of medical care, the minimum amounts might not be enough if you cause an accident. If your liability limits are too low to pay for all of the other driver’s costs, the driver may sue you to collect the difference. To protect yourself financially, consider buying more than the basic limits.

    When you buy an auto policy, your insurance company will send you a proof of insurance card. You will need to show proof of insurance when you are asked for it by a law enforcement officer have an accident register your car or renew its registration obtain or renew your driver’s license get your car inspected.

    There are severe penalties for violating the state’s financial responsibility laws. A first conviction will result in a fine between 175 and 350. Subsequent convictions could result in fines of 350 to 1,000, suspension of your driver’s license, and impoundment of your automobile.

    A Texas automobile insurance policy usually meets the financial responsibility requirements of other U.S. states and Canada. Mexico, however, does not recognize U.S. auto liability policies.

    Mexican authorities can hold drivers criminally and financially responsible for any auto accidents they cause. If you’re in an accident that results in an injury, police may detain you until they determine who is at fault. You will have to show that you either have insurance recognized by the Mexican government or the financial ability to pay any judgment against you.

    Some U.S. companies provide a free endorsement extending your policy’s coverage to infrequent trips of up to 10 days and as far as 25 miles into Mexico. You can buy coverage for longer stays, but it is usually valid only within 25 miles of the border. In addition, these endorsements might not meet Mexican legal requirements. You can buy Mexican liability insurance from Texas agents who specialize in it. Check your phone book for listings of insurance agents who specialize in auto insurance for travel in Mexico. Your local agent also might be able to help you find coverage with a Texas licensed Mexican company.

    You may be able to buy a Mexico "tourist" endorsement for your U.S. policy. This endorsement extends your liability coverage to pay costs exceeding a Mexican liability policy’s limits. It covers trips of any distance and any length of time. Ask your agent which endorsements your insurance company offers.

    In an Accident ... Move your car, if possible, to avoid blocking traffic and to protect it from further damage. Call the police if somebody is injured or killed, if you can’t move your car, or if the accident involved a hit-and-run driver.
    Your uninsured motorist coverage pays for a hit-and-run accident only if you report it to police.
    Get the other driver’s name, address, telephone number, license plate number, driver’s license number, and insurance information.
    Give the other driver the same information about you.
    Write down the insurance company name and the policy number exactly as shown on the other driver’s proof-of-insurance card. Insurance companies often have similar names, so make sure you get the correct company name.
    Get the names, addresses, and telephone numbers of any witnesses to the accident.
    Notify your insurance company as soon as possible.
    Your company probably has a 1-800 number to report claims. If not, call your agent. The agent or company will advise you about seeing an adjuster and getting repair estimates.
    Also, give your agent or company the names and addresses of any witnesses and anyone injured.
    If you reported your claim by phone, follow up in writing as soon as possible to protect your rights under Texas’ prompt payment of claims laws.
    Send the company copies of the accident report and any legal papers you receive about the accident.
    Cooperate with the company’s investigation. You might have to submit a proof of loss form or have a medical examination.

    If the other driver refuses to tell you the name of his or her insurance company, get a copy of the police accident report. The accident report should list the other driver’s name and insurance company. If the police did not investigate the accident, you can report the driver’s refusal to police.
    This could result in a report identifying the driver’s insurance company. In addition, the Texas Department of Public Safety keeps files of forms – called SR-22s – that show the insurance companies of people convicted of DWI or driving without insurance.
     

    Accidents Caused by Other Drivers
    If you were in an accident caused by another driver, the other driver’s insurance company should pay the following costs, up to the policy’s limits:
    repair or replacement of your car car rental while your automobile is being repaired your medical and hospital bills wages lost because of an injury
  • compensation for pain and suffering if anyone is hurt.

    If the other driver’s insurance won’t cover all your medical bills, file a claim for the difference against your Personal Injury Protection (PIP) coverage, if you have it. For amounts over that, you can claim against your uninsured/underinsured motorists (UM/UIM) coverage or your health insurance policy.

    If the other driver’s policy won’t cover all of your auto repairs, file a claim against your collision or UM/UIM coverage for the difference (minus your deductible) between the damage to your car and what the other driver’s policy will pay.

    The other driver’s insurance company may ask you to sign a release to settle your claim and forgo future claims related to the accident. Don’t sign a release until you are satisfied with the total settlement. Get a letter from your doctor estimating the cost and length of your future medical treatment. You might want to consult an attorney before accepting a settlement. Under Texas law, you have two years after an accident to either settle your claim or file a lawsuit.

    Texas law prohibits insurance companies from delaying payment of a claim in order to pressure you to sign a release. If you believe an insurance company is delaying payment to pressure you, file a complaint with TDI.

    If the other driver denies fault, his or her insurance company may refuse to pay the claim. Independent witnesses could make a difference in getting the company to pay. It’s important to get names, addresses, and telephone numbers of any witnesses to the accident. Make sure the insurance company knows about the witnesses. If the company continues to refuse to pay the claim, you can file a claim against your own insurance or you may have to go to court to resolve the issue.

    Before filing a claim with your company, ask your agent or your company’s underwriting department how a claim might affect your rates on renewal. A company cannot refuse to renew your policy solely because you had one accident in a 12-month period that was not your fault. However, if the accident affected your DPS driving record, your company may consider it in determining your rates, whether you made a claim on the accident or not.
     

  • Discounts can help you save money on your premium. Discounts vary by company. Following is a list of some of the discounts commonly available in Texas:> defensive driving and driver education courses for young drivers students with good grades parent or family whose young driver is away at school without a car airbags and automatic seatbelts automatic daytime running lights antilock brakes two or more cars on a policy driver age and annual mileage driven policy renewal with good claims and driving records.

    If you have a poor driving record, you can expect to pay more for your insurance. Companies may add surcharges to your premium – some as high as 60 percent – for the following: accidents the more accidents, the higher the surcharge moving violations speeding, etc. involuntary manslaughter driving under the influence criminally negligent driving driving without a license or with a suspended license .
     

      Note - Binders for new autos can be issued to existing customer only, new insurance policy must be signed and new insurance policy payment subject to clearing insurance company's bank, before being considered to be in place or in force.

    LIABILITY COVERAGE

    Bodily Injury and Property Damage (BI/PD) liability covers your legal liability, up to the limit you select, for damages caused in a covered vehicle accident. Under BI/PD, we pay for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If we cover an accident for which you are sued, we pay for a lawyer to defend you.

    You choose your BI/PD Limits of Liability as either Split Limits or a Combined Single Limit (CSL).

    Split Limits divide bodily injury liability limits per person and per accident. We pay up to the limit you select per person, but we only pay up to the total limit you select per accident. For property damage liability, we pay up to the limit you select per accident. CSL combines your liability coverage into one total limit per accident.

    LIABILITY COVERAGE - HOW DOES IT WORK?

    SPLIT LIMITS COMBINED SINGLE LIMITS

    Split Limits are usually expressed as three numbers, such as: $50,000/$100,000/$50,000

    In this example, you chose liability coverage totaling $50,000 for bodily injury per person, $100,000 for bodily injury per accident (the maximum that would be paid out for bodily injury on a claim) and $50,000 for property damage liability.

    These are called “split limits” because the amounts are “split” per person and per accident.

    A Combined Single Limit is stated as one number, such as: $100,000 In this example, you chose liability coverage totaling $100,000. This figure listed is the maximum we will pay for the total of all damages — Bodily Injury and Property Damage — resulting from any one accident.

    You lose control of your vehicle and crash into your neighbor’s house. You’ve chosen split limits of $50,000/ $100,000/$50,000. Your neighbor’s repair costs total $48,000. Because you chose property damage liability limits of $50,000, Progressive pays the entire $48,000 claim.

    You lose control of your vehicle and crash into your neighbor’s house. You’ve chosen combined single limit coverage of $100,000; the house repairs total $50,000. Progressive pays the entire $50,000 in damages.

    PERSONAL INJURY PROTECTION COVERAGE

    Personal Injury Protection (PIP) coverage is available in certain states and commonly referred to as “no-fault insurance.” If you are disabled or unable to work as a result of an accident, PIP covers your medical bills and often lost wages. In addition, it usually covers the cost of personal services you must now pay someone else to do for you. PIP coverage is subject to a limit, which is specified in the policy if available in your state.

    MEDICAL PAYMENTS COVERAGE

    Medical Payments coverage applies no matter who is at fault and covers the cost of reasonable and necessary medical care provided to you as the result of a car accident. The coverage is often limited to a specified time period following the accident

    (usually three years) and the amount of coverage you chose when you purchased the policy.

    UNINSURED/UNDERINSURED MOTORIST COVERAGE

    Uninsured/Underinsured Motorist coverage pays for damages that you are legally entitled to recover for your bodily injury. In general, this coverage provides what you would have received from the other person’s insurance company had that person been insured. This coverage may also protect you if the person who caused the damage does not have enough insurance. Uninsured

    Motorist Property Damage coverage is also available in some states and provides protection for damage to property caused by a person without insurance.

    COLLISION COVERAGE

    Under Collision coverage, we pay for damages if your vehicle overturns or if it collides with another vehicle or object. Collision coverage involves a “deductible” amount you select when you purchase your policy. This amount, typically $250 or $500, is the amount you are required to pay in the event a claim exceeds the deductible amount.

    COLLISION COVERAGE - HOW DOES IT WORK?

    You are involved in a crash that results in $8,500 worth of repairs to your vehicle. You have a $500 deductible; therefore, you only pay $500 and we pay $8,000.

    COMPREHENSIVE COVERAGE

    Under Comprehensive coverage, we pay for damage caused by an event other than a car collision, such as fire, theft, vandalism, hail, or flood damage. Comprehensive also covers damages from an animal hit. Additionally, if your car is stolen, Comprehensive will cover the cost of a rental (subject to a daily limit). Like Collision coverage, a deductible usually applies.

    LOAN/LEASE PAYOFF COVERAGE

    Loan/Lease Payoff coverage helps protect you when your covered vehicle has been deemed a total loss and you owe a lender more money than the vehicle is worth. If you buy Loan/Lease Payoff and your vehicle is declared a total loss, Loan/Lease Payoff

    will pay the difference between the vehicle’s actual cash value and the amount you owe to the lender. However, the maximum we will pay under this coverage is 25 percent of the actual cash value.

    LOAN/LEASE PAYOFF COVERAGE - HOW DOES IT WORK?

    You are in an accident that results in the total loss of your car. Your car is worth $10,000, but you owe

    your lender $12,000. With Loan/Lease Payoff coverage, we will cover the difference between what you owe and your car’s actual cash value. But, we only cover up to 25% of your car’s value.

    In this case, we will cover up to $2,500 (25% of $10,000). As a result, you will not owe your lender

    any money. Without Loan/Lease Payoff coverage, you would be responsible for the entire difference, or $2,000. And, remember, a deductible applies.

    ROADSIDE ASSISTANCE COVERAGE

    Roadside Assistance coverage covers labor costs incurred at the place where your vehicle becomes disabled as a result of a mechanical/electrical breakdown, dead battery, flat tire, and/or lock-out. We will also help if you run out of gas or other fluid or become stuck in snow or mud within 100 feet of a road or highway. And, if necessary, Roadside Assistance will cover towing to the nearest qualified repair facility.

     

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