As a car owner, you are required by law to purchase car insurance. Why? It aims to ensure that all parties involved in an accident receive compensation where it is legally due. Car accidents, by nature, are not incidents that can be resolved or repaired with $500. Often, automobile wrecks can carry unexpected expenses that can spiral upwards of thousands upon thousands of dollars.
Since most people do not have that amount of spare money laying around, car insurance companies offer a protection service to their customers. In return for a premium (a fee paid typically on a yearly basis) and a deductible (a set amount a customer has to pay before the insurance company will provide compensation), insurance companies agree to cover most or all costs involved in a car accident.
However, not all insurance plans are the same. Policies differ between companies. Regardless of which plan you use, there are a few core components that should be included in every plan. The additional fees of these components are always worth the money that is saved later.
#1: Liability Insurance
This is one of the most basic components of car insurance, and is included in most policies.s. What is liability insurance, exactly? If you are driving an insured vehicle and are directly at fault for a car accident, liability insurance will cover costs associated with the damage you caused, whether it is to other vehicles or other drivers. Many states require minimum limits of liability coverage your policy should meet. The Texas Department of Insurance states that it is required to have policy covering at least $30,000 per damaged person and $25,000 in property damage.
Some people opt for higher coverage limits. For example, a driver liable for $45,000 in property damage who purchased a policy with a $50,000 limit may only have to pay a deductible, while a driver with a $30,000 limit might be responsible for the extra $15,000. Of course, higher cover limits mean higher premiums and deductibles, but many people find the extra protection worth the money.
#2: Collision Coverage
What about your own car? Your vehicle may suffer damage during an accident as well. Collision coverage is straightforward: the insurance company agrees to pay the costs in repairing your vehicle. Or, if your car is totaled, this coverage will compensate you the actual cash value of your car, which according to the Texas Department of Insurance, "the market value of a car like yours without damages".
#3: Personal Injury Protection
This one is an absolute must buy when purchasing car insurance. Similar to collision coverage, this policy is more focused on you, the driver. Personal Injury Protection covers the hefty medical bills that result from car accident injuries, such as broken bones, cuts, and burns. This policy covers both you and your passengers, regardless of who is at fault in the accident. If you wish to avoid paying the high costs of medical care, be sure to include this policy in your plan.
Often, insurance companies will be reluctant to provide compensation, even if you have these policies outlined in your plan. If you feel that your car insurance company is not fulfilling their end of the agreement, contact Colley & Colley immediately. Our lawyers will fight with knowledge and experience for the compensation you deserve. To get started, contact an attorney in East Texas today.
15511 W Highway 71
Suite 110-142
Austin, TX 78738
(512) 477-2001
512-477-3335
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