Automobile policy protects you financially by paying the other driver ’ south car repair and checkup bills if you cause an accident. Depending on the kind of coverage you have, it can besides pay to repair or replace your car if it ’ sulfur damaged or stolen .
Texas has a Consumer Bill of Rights for car policy. Your insurance company will give you a copy of the bill of rights when you get or renew a policy .

Is auto insurance required?

Texas law requires drivers to show proof they can pay for the accidents they cause. Most drivers do this by buying car indebtedness insurance. Liability insurance pays to repair or replace the other driver ’ second cable car, or early damaged property, and pays other people ’ mho medical expenses when you ’ re at fault in an accident.

If you even owe money on your car, your lender will require you to have collision and comprehensive coverage .
Learn more : 10 steps to find the correct car policy | lookout : What kind of car indemnity do you need ?

Types of auto coverages

There are eight basic car indemnity coverages. You can choose whether to buy the others .

  1. Liability coverage pays to repair the other driver’s car if you caused the accident. It also pays the other driver’s and his or her passenger’s medical bills and some other expenses. Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage.
    Think about buying more liability coverage. The minimum indebtedness limits might be excessively abject if you cause a multi-vehicle accident or the early driver ’ s car is totaled. If you don ’ t have enough liability coverage to pay for the damages and injuries you cause, you might have to pay the remainder out of your own air pocket. The other driver could sue you .
  2. Collision coverage pays to repair or replace your car after an accident.
  3. Comprehensive (other than collision) coverage pays if your car is stolen or damaged by fire, flood, vandalism or something other than a collision.
  4. Medical payments coverage pays your and your passengers’ medical bills. It also pays if you’re hurt while riding in someone else’s car or while walking or biking.
  5. Personal injury protection (PIP) coverage is similar to medical payments coverage. It pays your and your passengers’ medical bills. But it also pays for things like lost wages and other nonmedical costs. All auto policies in Texas include PIP coverage. If you don’t want it, you must tell the company in writing.
  6. Uninsured/underinsured motorist coverage pays if you’re hit by someone who didn’t have insurance or didn’t have enough to pay your medical and car repair bills. It also pays if you’re in a hit-and-run accident. Insurance companies must offer you this coverage. If you don’t want it, you must tell the company in writing.
  7. Towing and labor coverage pays to tow your car if it can’t be driven. It also pays for labor to change a flat tire or jump-start your battery.
  8. Rental reimbursement coverage pays for you to rent a car if yours is stolen or being repaired after an accident. Some policies also pay for taxis or ride-hailing services.

Learn more : Do you need extra uninsured motorist coverage ? | watch : What are the different types of car policy coverages ?

Who’s covered?

Most policies cover you, your class, and people driving your cable car with your license. Ask your agent or read your policy to know who your policy covers and if anyone is excluded from coverage .

What does my policy cover?

Coverages vary by policy and depend on the types of coverages you choose. This board shows some of the things most policies do and don ’ metric ton cover. Read your policy or talk to your agent to be sure of your exact coverages .

Most policies cover: Most policies don’t cover:
Damage to your car because of fire, hail, theft, flood, flying gravel, or hitting an animal (if you have comprehensive coverage) Accidents that happen while you’re driving for a ride-hailing service or delivering food or other items for a fee
Accidents that happen while you or someone covered by your policy is driving a rental car Accidents that happen while you’re driving a car that doesn’t belong to you but you could use regularly, like a company-owned car
Accidents that happen while you’re driving in other states and Canada Equipment not permanently installed in your car
Your attorneys’ fees if you’re sued because of an accident Accidents that happen while you’re driving in Mexico, driving for business, or racing
Car repair, lost wages, and medical and funeral bills to the other driver and passengers if you cause an accident Damages that you caused intentionally

What happens if I buy a new car? Is it covered?

If you get a new car, your current policy will automatically cover it for about 20 days. The type of coverage depends on whether the cable car is an extra or refilling car .

  • An additional car gets the same coverage as the car with the most coverage on your policy.
  • A replacement car gets the same coverage as the car it replaces on your policy.

Tell your company about a fresh car a soon as you can to avoid a sink in coverage .

Am I covered if I’m driving someone else’s car?

Rental cars. Rental agencies offer wrong waivers and liability policies. The damage release international relations and security network ’ deoxythymidine monophosphate insurance. It ’ s an agreement that the rental agency won ’ thyroxine charge you for price to a cable car you rent .
You probably don ’ t need the rental representation ’ sulfur liability policy. Your own car policy will normally cover you while you ’ ra driving a rental car for personal use. It probably won ’ thyroxine cover you if you ’ re driving the rental car for work, however .
Before you rent a car, ask your agent whether you need the lease agency ’ sulfur liability policy and wrong release .
Learn more : do I need to buy indemnity when I rent a car ?
Borrowed cars. If you cause an accident while driving a adopt car, the car owner ’ s insurance pays claims. If the owner doesn ’ t have indemnity, or doesn ’ t have enough to pay for the damages and injuries you caused, your indemnity will pay .
If you don ’ thymine own a cable car, but borrow a cable car frequently, you can buy a nonowner indebtedness policy that pays for damages and injuries you cause to other people while driving a borrowed cable car. It doesn ’ metric ton pay for your injuries or damage to the cable car you ’ re drive .
If you borrow a car from a repair workshop, your liability indemnity will pay for damages to the car. It will besides pay for other people ’ randomness injuries and damages if you ‘re at fault in an accident. Check your liability limits to make certain they ‘re enough to pay for the damages .

I’m driving into Mexico, am I covered?

Mexico doesn ’ thymine recognize american english car policies. Some companies offer endorsements for shortstop trips into Mexico, but the coverage might not meet Mexico ’ s legal requirements. If you ’ rhenium driving into Mexico, you should buy a mexican indebtedness insurance policy. Some Texas agents sell them. Your agent might be able to help you find an agentive role who does .

Deductibles and dollar limits

You must meet a deductible for some types of claims.

You must pay a deductible for collision, comprehensive, and uninsured/underinsured motorist claims. A deductible is the come of a claim that you must pay yourself. For example, if you have a $ 1,500 collision claim and your policy has a $ 500 collision deductible, the policy company will deduct $ 500 from your title total and pay you $ 1,000. You don ’ t have to pay a deductible for claims against another driver ’ south insurance company .
Learn more : What to know about deductibles

Some coverages pay only up to the policy’s dollar limits.

liability, personal injury protective covering, uninsured/underinsured motorist, towing and labor, and rental coverages have dollar limits. This is the most the company will pay, even if the monetary value is higher. If you don ’ t have enough coverage, you ’ ll have to pay the remainder yourself. collision and comprehensive examination coverages don ’ t have dollar limits .
The first page of your policy is the announcement page. It has a summary of your policy, including your coverages, dollar limits, and deductibles .

Auto indemnity for young drivers

You have two options for covering your young drivers. You can add them to your policy, or you can buy a separate policy for them. Adding them to your policy is normally cheaper .
Some companies require you to put everyone who lives with you and is of driving age on your policy. Tell your party when person in your family starts to drive or turns 16. If you don ’ deoxythymidine monophosphate tell the caller, and the company learns about them later, the party will charge you for the extra bounty you should have paid. The company besides might deny any claims you have or choose to not renew your policy .
If a adolescent is the main driver of a car, the company will base the premium on that car. otherwise, the company will base the adolescent ’ s premium on the cable car in the syndicate with the highest pace .
watch : adolescent driving safety

Children away at school or not living with you

Some companies require you to keep young drivers on your policy, even if they ’ re away at school. Tell your indemnity company if you have a child living in another city for educate. If your child has a car, the company might charge you differently because rates are based on where a car is normally located. If your child doesn ’ deoxythymidine monophosphate have a car, you might be able to get a discount on your premium. If your child is going to educate in another state, check the laws in that state to make certain you have enough indebtedness coverage .

Understanding premiums

Texas jurisprudence requires indemnity companies to charge rates that are clean, fair, and adequate for the risks they cover. We don ’ thyroxine approve rates in advance, but if we find that an policy party ’ sulfur rates are besides high, we can require it to pay refunds to the people it overcharged. policy companies may appeal our decisions .

How do companies decide what to charge me?

insurance companies use a action called underwrite to decide whether to sell you a policy and how much to charge you. The amount you pay for policy is called a premium .
Most companies consider these things when deciding your car policy agio :

  • Your driving record and claims history. Insurance companies will charge you more if you’ve had accidents or gotten tickets. Some companies might refuse to sell you a policy.
  • Where you keep your car. Rates are higher if you live in a city. This is because people in cities are more likely to have accidents or have their cars stolen than people in rural areas. Rates can also vary between ZIP codes in the same city.
  • The kind of car you have. Collision and comprehensive rates are highest for luxury, high-performance, and sports cars. Rates are also higher for cars that cost more to repair.
  • How you use your car. Your rates will be higher if you drive your car to and from work or use it for business.
  • Your credit score. Some companies use your credit score to decide what to charge you. To find out which companies use credit scores, visit

Learn more : How your credit grudge can affect your policy rates

Insurance companies check your claims history.

Most companies use the Comprehensive Loss Underwriting Exchange ( CLUE ) to learn your claims history. A company can charge you more or refuse to sell you a policy based on the information in your CLUE report. You can get a free copy of your report each year. Call LexisNexis at 866-312-8076 .
Learn more : How to get a CLUE about your claims history

Your rights

An insurance company may not :

  • turn you down or charge you more because of your race, color, religion, or national origin.
  • turn you down or charge more because of your age, gender, marital status, geographic location, or disability unless the company can show that you’re a greater risk for a loss than other people it’s willing to insure.
  • turn you down, charge you more, or treat you differently than other people in your rate or risk class unless the company can show that you’re a greater risk than others.
  • turn you down or charge you more only because of your credit score.

Saving money on your indemnity

Discounts help lower your premium. Each company decides what discounts to offer and the sum of the discount rate. You might be able to get a discount if you have :

  • airbags, antilock brakes, and antitheft devices in your car.
  • completed a defensive driving or a driver education course.
  • more than one car on a policy.
  • other policies with the same insurance company.
  • no claims and a good driving record.

Learn more : How you drive could save you money on cable car indemnity | Watch : How to compare car indemnity rates

Losing your insurance

If you ask, a ship’s company must tell you in writing why it turned you down, canceled, or didn ’ thymine renew your policy. You may complain to us if you think a company improperly denied, canceled, or nonrenewed your policy .

What happens if a company cancels my policy or doesn’t renew it?

Cancellation means either you or the indemnity company stops coverage before your policy ’ mho conclusion date. A party must give you 10 days ’ notice before it cancels your policy. A company may cancel your policy in the inaugural 60 days for any reason, unless the cancellation violates a police.

An insurance party may cancel your policy at any clock if :

  • you stop paying your premiums.
  • you file a fraudulent claim.
  • your driver’s license or car registration is suspended or revoked (this also applies to other drivers who live with you or use your car).

If either you or the company cancels your policy, the company must refund any unearned premium to you within 15 days after the date of the cancellation. unearned bounty is the total you paid in advance that didn ’ t go toward coverage. For example, say your premium is $ 100 a calendar month and you paid for six months in advance. If you cancel your policy after one calendar month, the company would owe you $ 500 in unearned agio .
Nonrenewal means a company refuses to renew your policy when it expires. A company must tell you in writing that it isn ’ metric ton going to renew your policy. It must tell you at least 30 days before your policy expires .
A party can nonrenew your policy only after it ’ s been in effect for 12 months. This means that if you bought a six-month policy, the ship’s company can ’ t reject to renew it when the first six months ends. It must renew it to give you a full 12 months of coverage .
A caller can ’ t reject to renew your policy because of your long time. It besides can ’ triiodothyronine nonrenew your policy because you had claims for :

  • weather damage.
  • damage from hitting an animal.
  • accidents or incidents that can’t reasonably be blamed on you, unless you have more than one of these claims in 12 months.
  • damage from flying gravel or other flying or falling objects (the company can raise your deductible if you have three of these claims in 36 months).
  • towing and labor (the company can refuse to renew your towing and labor coverage if you have four of these claims in 36 months).

If you get a nonrenewal or cancellation comment, start shopping for newly insurance right away. Make certain you get a newly policy before your old policy ends then you won ’ deoxythymidine monophosphate have a elapse in your liability coverage .
If you silent owe money on your car, your lender will require you to have collision and comprehensive coverages. If you cancel or lose these coverages, your lender will buy single-interest coverage and add the price to your loan requital. This coverage is expensive and protects merely the lender .

What if I can’t find a company that will sell me a policy?

If you can ’ thyroxine find a company willing to sell you a policy, you can get basic coverage through the Texas Automobile Insurance Plan Association ( TAIPA ). You can get TAIPA coverage if two insurance companies have turned you down .
TAIPA sells liability, personal injury protection, and uninsured/underinsured motorist coverages. It doesn ’ t sell collision or comprehensive examination coverage or higher indebtedness limits than country law requires .
TAIPA coverage is more expensive than coverage from other insurance companies. TAIPA besides charges more if you ’ ve had tickets or accidents than other companies .
If you have TAIPA coverage and haven ’ t had any tickets or accidents for a year, your rates might go down. If you don ’ t have any tickets or accidents for three years, your policy party must offer you a cheaper policy outside of TAIPA .
To get TAIPA coverage, spill the beans to your agent .

Auto claims

To help make the claim process go smoothly, follow these tips :

  • Get the other driver’s name, address, phone number, and license plate number. Write down the exact name of the other driver’s insurance company, the company’s phone number, and the policy number. To save time, take a picture of the other driver’s insurance card. If the other driver refuses to tell you the name of his or her insurance company, call the police.
  • Give the other driver the same information about you.
  • Get the names, addresses, and telephone numbers of any witnesses to the accident. Give this information to the insurance company. Independent witnesses can help prove fault if you were in an accident caused by another driver. If you don’t have witnesses and the other driver denies fault, his or her insurance company might deny your claim.
  • Call the police if you were hit by a driver who left the scene. Your uninsured motorist coverage won’t pay for a hit-and-run accident if you didn’t report it to police.
  • Call the police if anyone was injured.
  • Note the time, date, and exact location of the accident. Also record any special circumstance like weather and road conditions. Take pictures of the accident scene. Give this information to the insurance company.
  • Tell your company about the accident as soon as possible. Most companies have deadlines for filing claims. Your insurance card should have a number you can call to report claims. Explain what happened and answer questions as thoroughly as possible.
  • Send the company copies of the police accident report. It usually takes a few days for the police offer to file a report. Get the officer’s name and badge number so you can follow up if you need to.
  • Tell the company if you were injured. If you went to the emergency room or to a doctor, give the company copies of the medical reports and doctors’ bills.

Learn more : Will my premium go up if I file a claim ? | watch : 5 Tips To Avoid Scams After A Wreck

After I file my claim, what happens?

Texas jurisprudence sets deadlines for insurance companies to act after you file a claim. A company must :

  • Tell you it got your claim within 15 days of getting notice. The company may ask you for a signed proof-of-loss form or for more information. The company may also ask you to have a medical exam.
  • Have an adjuster look at your damage. The adjuster will estimate the cost of repairs. The company will base its payment on the adjuster’s estimate. If the damage turns out to be worse than the adjuster originally thought, you or the repair shop can talk to the adjuster about raising the estimate. If you can drive your car, the company might ask you to take your car to one of its claim centers so an adjuster can look at it. Some companies might ask you to get your own estimates and provide them to the company.
  • Accept or reject your claim within 15 business days of getting all the information it needs from you. A company that needs more time can take 45 days to decide whether to pay your claim. It must tell you the reason for the delay. If it denies your claim, it must tell you why in writing.
  • Send you a check within five business days after it agrees to pay your claim.

The immediate requital law doesn ’ metric ton put on if another driver ’ second insurance company is paying the claim. But the company must act in good faith and try to settle your claim quickly and fairly .
Learn more : make with an insurance adjuster | Watch : Protect yourself from becoming a victim after the accident

Settling claims

Repair claims

indemnity companies will pay for repairs or surrogate of your car alone up to its actual cash value. actual cash value is the price to replace your car, minus depreciation. Depreciation is a decrease in value because of wear and tear or senesce .
Some companies might give you a list of prefer animate shops, but they can ’ deoxythymidine monophosphate want you to use a shop on its list .
The indemnity ship’s company is only necessitate to pay for parts of like kind and quality to those that were damaged. It doesn ’ t have to pay for original parts from the manufacturer .

What if the other driver’s insurance company refuses to pay my claim?

If you believe the early driver was at mistake, but his or her insurance caller won ’ triiodothyronine pay your call, file a call with your own insurance party. You must have collision coverage to do this. Your policy company will probably try to collect from the other driver ’ sulfur company .
Be mindful that if you file a claim with your own company, you ’ ll have to pay a deductible .
Learn more : Were you in an accident caused by the early driver ?

What if the other driver’s limits aren’t high enough to pay my bills?

If the other driver ’ second policy limits aren ’ metric ton high enough to pay for all your car repairs, file a claim with your insurance company. Your collision or uninsured/underinsured motorist coverage should pay the deviation. If you file a claim with your policy company, you ’ ll have to pay a deductible .
If the other driver ’ s limits aren ’ deoxythymidine monophosphate enough to cover all your checkup bills, file a claim with your car insurance company or your health indemnity company. Your car insurance company will use either your PIP coverage, medical payments coverage, or your uninsured/underinsured motorist coverage to pay the difference. You might have to pay a deductible .

What if the insurance company totals my car?

If the monetary value to repair your car is close to its current value, the company will credibly decide to total it. This means the caller will pay you to replace your car quite than fix it .
If the party totals your car, it will pay your car ’ s value minus depreciation. Depreciation is a decrease in value because of clothing and tear or age. For exemplify, if your car is 10 years honest-to-god, the caller will pay you the rate of a 10-year-old used car. It won ’ t pay to replace your car with a new car that ’ s the lapp have and model as your totaled car .
Be prepared to negotiate with the company to get what you think is a honest manage. A company might raise its put up if you can show that your car would sell for a higher price. Get written price quotes for a similar cable car from used car dealers. You can besides look in the classify incision of your local newspaper for used cable car prices .
If you distillery owe money on your car, the amount the caller will pay you if it totals your car might not be adequate to pay off your loan. This will happen if the market rate of your car is less than what you owe. Auto dealers and lenders normally offer undertake car protection, or gap, policy for this .
Learn more : act I need col indemnity for my new cable car ?
If you want to keep your car, the policy company will subtract its salvage rate from the settlement sum. If your car is issued a nonrepairable entitle, it can ’ deoxythymidine monophosphate be retitled or registered .
Learn more : My car was totaled ! now what ? | watch : What happens if your car is totaled ?

Will the insurance company pay for a rental car?

If your accident was caused by another driver, the other driver ’ mho policy company will pay for you to rent a car. You can keep the rental car for the time the company believes is reasonable for your car to be repaired. The company will base the sum of time on the calculate number of hours of undertaking. Be surely to let the adjuster know about any delays in getting your car fixed. The company might extend the lease if there are delays because the animate shop class had to order parts or found more damage .
If the company totals your car, it will probably stop paying for the lease a few days after telling you .
Your insurance company will pay for a rental car if :

  • you have uninsured/underinsured motorist coverage and the driver who caused the accident didn’t have insurance or enough insurance.
  • you have uninsured/underinsured motorist coverage and the accident was a hit-and-run.
  • you have rental reimbursement coverage and were in an accident.
  • you have comprehensive coverage and your car is stolen.

Your insurance company will pay for a rental cable car entirely for the fourth dimension it believes is reasonable to repair or replace your cable car. It will pay a set sum each day and only up to your policy ’ s rental coverage dollar limits .

Medical claims

If you were injured in an accident caused by another driver, the other driver ’ second policy company will offer you a settlement to cover your medical bills related to the accident. The company will besides ask you to sign a release promise that you won ’ deoxythymidine monophosphate file more claims for the accident. Before you sign the passing, talk to your doctor about any future checkup treatment you might need. Consider this data to decide whether the caller ’ second colony offer is fair.

If you think a company is delaying requital to pressure you to sign the exhaust, complain to us .

Resolving problems

If you disagree with the adjuster ’ second calculate or the amount the company is offering to pay you, tell the insurance company why. You might be able to work things out by talking with the company or the adjuster. If that doesn ’ deoxythymidine monophosphate resolve the issue, here are your options :

  • Ask for an appraisal. The appraisal process is for disputes about the amount of your claim. If you use appraisal, you and the insurance company each hire an appraiser. The two appraisers then choose a third appraiser as an umpire. Your appraiser and the company’s appraiser each estimate the amount of your loss. If the estimates are different, the umpire makes the final decision. The umpire’s decision is binding on both you and the insurance company. You pay for your appraiser and half of the umpire’s expenses. You can use appraisal only for disputes with your insurance company. You can’t use it to resolve disputes with another person’s insurance company.
  • Complain to us. Your complaint must be in writing. You can use our Online Complaint Portal
  • Resolve your issue in court. You might have to file a lawsuit to resolve the issue. If your claim is for less than $10,000, you can use Justice Court. Justice Court is a special court that handles small-claims disputes. You don’t need an attorney, but you have to pay a filing fee and other court costs in advance. If you win, you can get that money back. For more information, call your county justice of the peace office.

Learn more : What if my indemnity is n’t paying enough ?

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