Determining what type of coverage to get for your vehicle is overwhelming. There are so many different plans and add-ons that, by the end of the buying process, you might just elect to go with the cheapest option. However, you can’t predict the future, and even the most experienced driver can be involved in an accident. Going with the cheapest option might put you in a sticky situation if you are ever hit by another car. To prepare for the worst-case scenario, it’s best to know five of the most common types of auto insurance coverage and how they can help you if you are ever in an accident.
Liability Coverage
Liability is the most basic type of coverage. If you are the responsible party in the accident, this helps cover the other person’s expenses. There are two components: bodily injury liability and property damage liability. Bodily injury liability helps pay some of the other party’s medical expenses, such as X-rays or hospital visits. Property damage liability covers any damage to their property. Liability coverage is required in Texas and you will receive a citation if you do not have it. Liability coverage is mandatory, but it only protects you from paying out-of-pocket for damages that you caused to someone else’s vehicle; it does not help to repair or replace your own vehicle.
Comprehensive Coverage
This type may help cover your vehicle in the event that you are in a motor vehicle accident, as well as other events such as hail or fire damage. If you have this type of coverage, you may receive help to repair or replace your damaged vehicle. This type of coverage does have a deductible, similar to health insurance, so you will have to pay some out of pocket before you are reimbursed. This type of coverage is not required in Texas, but with the crazy weather Texans face and the high chance of being in a car accident, this type of coverage will help pay for itself.
Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage
UM/UIM coverage helps pay your medical and property damage expenses if you are hit by an uninsured or underinsured motorist. An uninsured motorist is either someone who is driving without insurance whose insurance coverage is not known, such as in a hit-and-run accident. An underinsured motorist is someone whose liability limits aren’t enough to cover your bills after an accident or if their liability limits are less than or equal to your underinsured coverage. This type of coverage is not required in Texas; however, it could help save you thousands of dollars in medical bills if you are not the at-fault driver in the accident.
Medical Payment (MedPay) Coverage
This helps pay for any medical costs associated with the accident, extending to both the driver of the insured vehicle and any of your passengers. Even though this type of coverage is not required in Texas, the rising cost of healthcare makes it crucial to prepare for these expenses. Unlike Personal Injury Protection, this coverage can be used to cover medical expenses, no matter who caused the accident. However, MedPay usually has to be paid back to your insurance company if you receive a settlement for your claim.
Personal Injury Protection (PIP)
PIP is only available in some states, Texas being one of them. It is designed to help with costs accrued from an accident, similar to medical payment coverage. However, this type of coverage extends further, meaning it could help you with expenses like child care or lost wages. This type of coverage also helps cover the medical bills of the passengers in the insured vehicle, as well as the driver. In order to use this type of coverage to help pay for your expenses, it must be determined that you are not at fault in this accident. Unlike MedPay, you do not have to pay back PIP if you receive a settlement for your claim.
Determining which type of coverage is best for you comes with lots of things to consider. After being in an accident, many people are left wishing they had chosen extra coverage that was only a couple dollars more a month. In the long run, these extra dollars a month can end up saving you thousands later. If you are in a car accident, an experienced personal injury lawyer in Arlington, TX will be ready to fight for you, to ensure you are fairly compensated. Contact a law firm today.
Thanks to Brandy Austin Law Firm for their insight into personal injury claims and car insurance coverage.