2 Types of Auto Insurance Coverage Texas Families Should Have!
Written by Greg on January 23, 2017
The state of Texas automobile insurance is a disaster. Rising costs while reducing the amounts paid out in claims has turned out to be a honey hole for insurance companies reaping profits on the backs of hard-working Texas families. Many people are not aware that Texas has some of the highest priced auto insurance in the country yet they pay out some of the smallest portions of the premium dollar collected in actual claims.
Other states take a more proactive role and require that the companies selling automobile insurance to their citizens must pay out a certain level of the dollars that they collect in actual claims. This approach serves multiple purposes, the main one being that it keeps the cost of auto insurance down and simplifies the claims handling process for the victims.
When automobile insurance becomes a profit center, the people within the state and the being the loser.
There are two types of insurance coverage that every Texan should consider buying simply because the odds of getting into an accident with the driver who is uninsured are greater in Texas than in most other states. As set forth above, Texans could feel relief from the high cost of automobile insurance simply by requiring the insurance companies to pay out a higher percentage of the premium dollars a collect and actual claims. Barring that, you must protect yourself against getting involved in an accident with an uninsured driver.
UNINSURED MOTORIST COVERAGE
Uninsured motorist coverage provides protection should you get into an accident with the driver who is either uninsured or underinsured. Many people purchase automobile insurance in order to get their vehicles licensed and immediately stop making the payments voiding coverage.
Texas has an estimated 1.6 million uninsured drivers. While the percentage of uninsured drivers in Texas fall somewhere in the upper middle percentage of states, the sheer number of residents in Texas makes the odds of being in an accident with an uninsured fairly likely.
Purchasing uninsured motorist coverage is the best way to protect yourself against getting into a crash with someone with no insurance or little insurance.
PIP or PERSONAL INJURY PROTECTION
Purchasing personal injury protection coverage can add a few dollars to your premiums but the coverage is invaluable if you are in an accident and pay medical expenses out of your pocket or incur lost wages. Personal injury protection is extremely helpful for lost wages because upon verification from your employer the coverage will reimburse you for your lost wages at 80% up to your limits.
Many carriers also offer medical payment coverage which is inferior to personal injury protection in our view because the med pay coverage requires you to pay them back should you collect money from the person who caused the wreck. In effect when the accident is another person’s fault, med pay is at best a wash.
Sitting down with your insurance professional each year to quote coverage and assess your needs is a good method for protecting your family.
Click here for more information about how we may be able to help with a North Houston car accident claim.