Auto Coverage Types

Coverages are various financial protections for you, your car, and others in the event of an accident or loss where you could be considered responsible. Even though it may not be your fault, the fact that you own the car may make you responsible.

Of course, the more protection you buy means that the price will be higher. Conversely, the less protection you buy means that the price will be lower. The amount of insurance protection you buy is up to you. You should consider what you have to lose if you don't have enough insurance protection when someone points the finger of responsibility at you. The following are brief explanations of the most common auto insurance coverages:

BODILY INJURY LIABILITY (BI)
This coverage protects you if you are involved in an accident and you caused bodily injury to others. It also provides you with a legal defense in case someone sues you because of the accident. If your car is leased, your lease company may require you to buy higher limits of this coverage. THIS COVERAGE IS REQUIRED TO DRIVE LEGALLY IN TEXAS.

PROPERTY DAMAGE LIABILITY (PD)
This coverage protects you if you are involved in an accident and you cause damage to someone else's property. If your car is leased, your lease company may require you to buy higher limits of this coverage. THIS COVERAGE IS REQUIRED TO DRIVE LEGALLY IN TEXAS.

UNINSURED MOTORISTS BODILY INJURY (UM or UMBI)
This coverage pays you and other passengers in your car for injuries you may receive or damage to your vehicle caused by an uninsured driver. THIS COVERAGE IS NOT REQUIRED TO DRIVE LEGALLY IN TEXAS BUT IS STRONGLY RECOMMENDED.

PERSONAL INJURY PROTECTION (PIP)
This coverage will pay personal injury benefits because of bodily injury resulting from a motor vehicle accident. Pays for income which would have been earned had the covered person not been injured, and income actually received from employment during disability. You or any family member who sustained injury or lost wages as a direct result of a motor vehicle accident. Personal injury benefits consists of reasonable expenses incurred for necessary medical and funeral services as well as 80% of lost wages as a direct result of a motor vehicle accident THIS COVERAGE IS NOT REQUIRED TO DRIVE LEGALLY IN TEXAS BUT IS STRONGLY RECOMMENDED.

COMPREHENSIVE (COMP)
This coverage pays for damages to your vehicle caused by something other than a collision, such as fire, theft, vandalism, or windstorm. This coverage usually has a deductible that you pay to offset costs. A higher deductible means a lower price for this coverage. THIS COVERAGE IS REQUIRED IF YOUR CAR IS FINANCED OR LEASED.

COLLISION
This coverage pays for damages to your vehicle, regardless of fault, when you hit another car or object. This coverage usually has a deductible that you pay to offset costs. A higher deductible means a lower price for this coverage. THIS COVERAGE IS This coverage helps offset the cost of towing your vehicle. It usually allows coverage up to a predetermined amount for each towing incident..

TOWING
This coverage helps offset the cost of towing your vehicle. It usually allows coverage up to a predetermined amount for each towing incident.

RENTAL CAR REIMBURSEMENT
This coverage helps offset the cost of renting a car while your car is being repaired because of a collision. It usually pays a predetermined daily amount for a certain number of days.