What is auto insurance?
Most consumers believe auto insurance is something you are forced to buy when you own a car. The “must have” in order to obtain a driver’s license, renew your car license plates and so on… When in reality, auto insurance is so much more when done appropriately.
Auto Insurance Quote Forms
Why do you need auto insurance?
It’s really all about protecting yourself financially.
There are several parts to an auto insurance policy. Let’s explore them…
- The first number (up to $30,000) is the total your policy will pay out PER PERSON medical in the car you hit. The second number, (up to $60,000) is the TOTAL MEDICAL your policy will pay for the entire accident. The third number, (up to $25,000) is the amount your policy will pay for PROPERTY DAMAGE. This could include the car you hit/totaled, the mailbox you destroyed or the fence you went through.
- Let’s assume you drive a Chevy Tahoe valued at $65,000 and someone runs a red light and totals your Tahoe. Let’s also assume the responsible party only carries the minimum required liability limits of 30/60/25 as discussed above. Clearly, $25,000 is not enough to replace the Tahoe valued at $65,000. Therefore, your UNDERINSURED motorist coverage would pay the remaining $40,000 or up to the limit on your declarations page. This example is the exact reason CMI of Texas recommends starting at 50/100/50.
- FALSE – Not all policies include ALL the coverages. In addition, the limitations of the coverages can vary from carrier to carrier. Remember, auto insurance is not a “replacement” policy. They are paid as actual cash value – meaning – what your car is worth at the time of the loss.
- FALSE – again, your health plan can deny the coverage due to injuries sustained in an automobile accident. You may be able to go to the doctor and use your benefits. However, you will soon receive a letter in the mail asking you to verify if your injuries were sustained in relation to an accident.
- FALSE – Not all agents quote ALL the coverages . Make sure you review exactly what coverages are being offered.
- Some agent’s definition of full coverage is liability, comprehensive and collision.
- FALSE – Most agents will only quote liability when you ask for liability only. Another way of saying this would be “only what the state requires me to have”.
- **** underinsured/uninsured motorist is NOT required by the state; however, you MUST sign to reject this coverage.
Things to consider and questions to ask your agent
Here are few things to discuss with your agent that will influence your decisions.
- How much can you afford to pay if you get in an accident? To keep premiums low you may want to have a higher deductible and be willing to pay more for repairs.
- What is the insurance company’s level of service and ability to pay claims?
- What discounts are available? Ask about good driver, multiple policy and student discounts.
- What’s the procedure for filing and settling a claim? Ask who to call and what happens after you file a claim.
Thank you for your interest in CMI of Texas. We work with multiple A+ rated carriers to bring build a custom policy to fit your needs and budget. Please call our office at 936-703-5096 or email your questions and an insurance agent will reply promptly.