Types of Auto Insurance Coverage

There is a lot of confusion when it comes to auto insurance, and when looking for auto insurance in Dallas it can be even more confusing because of all of the options available. Below we’re going to list out some of the different types of coverage available on an auto insurance policy so that you can make a more informed decision the next time you’re evaluating your options.

Liability (Bodily Injury/Property Damage)
Liability is the foundation of all auto insurance.  This is the coverage that would pay to repair the other person’s vehicle and/or bodily injury if you were involved in an accident where you were found at fault.  Liability insurance is also the only coverage that is effectively mandated by the State of Texas for you to carry.  The minimum limits required are 30/60/25; however, our Texas insurance agency always suggests that you carry higher liability limits because: 1) the premium difference is often only a few dollars a year and 2) if you don’t have enough liability insurance in the event of an accident where you’re at fault and a person is seriously injured and the $30,000 per person coverage for bodily injury is exceeded from their medical bills, you could find yourself having to pay the remainder out of pocket or even have a judgement placed against you and future earnings garnished to pay for the accident that you caused.

Uninsured/Underinsured Motorist Coverage
With Texas having one of the largest populations of uninsured drivers this coverage is there to protect you and your passengers for injuries and or damage to your vehicle in the event of an accident caused by someone else who has little or no insurance at all.  This coverage is optional but can provide great piece of mind when it comes to protecting your family, passengers and vehicle.

Comprehensive Coverage
Sometimes called “other than collision” this coverage typically covers your vehicle in the event of fire, theft, natural disaster, collision with a vehicle, etc. It can also cover you in the event that your vehicle is stolen (happening more and more often lately) or even vandalized.  This coverage often contains a deductible (such as $500 or $1000) that you are responsible for paying before the insurance company provides coverage. 

Collision Coverage
Collision coverage, also normally required if your vehicle is leased or financed, pays for damage to your vehicle when you are at fault. An example would be if you rear ended someone and your front bumper needed to be replaced.  If you were found at fault in this instance your car would be repaired using the collision coverage, if applicable, and would pay out after the deductible is satisfied.

Medical Coverage/Personal Injury Protection
These coverages often help pay for medical expenses for you or your passengers.  Medical coverage and personal injury protection are optional coverages, but our Dallas insurance agency offers them to each and every client because they are often inexpensive and can provide additional coverage that your current health insurance policy does not cover.  There are specifics you need to know when selecting this coverage so reach out to our agency and we can discuss which one, if either, is right for you.

Towing/Labor and Roadside Assistance Coverage
Pretty self-explanatory, this coverage can provide 24/7 assistance if you need a tow, lock your keys into your car, get a flat tire or if your battery dies.  There are instances when this coverage is covered automatically, but your LFIG agent will discuss in more detail what is covered under your policy for towing/labor and roadside assistance.

Rental Car Reimbursement/Loss of Use
If your car is involved in an accident and you need to rent a vehicle this coverage can help you cover car rental cost other cost of transportation (such as paying for a rideshare service, train pass or bus tickets).  This coverage can often be on a reimbursement provision, meaning you pay and then are reimbursed by the insurance company, and often has a maximum amount it will pay out.

This post is merely an overview of the coverages provided by the auto insurance companies we represent at Lewis Family Insurance Group.  Each carrier has different specifics to their policies and some cover certain things in different ways. If your curious about the coverages you currently have, whether they’re sufficient or interested in making sure you’re getting the best coverage for the best rate, then feel free to call us at 972-752-0289 and we can perform a comprehensive review of your policy.