Friday, October 26, 2012

Choosing the Right Texas Auto Insurance Policy

By Leigh Jackson


Having Texas auto insurance will help you pay for small repairs or major accidents, not only is it convenient to hold, law also mandates it. A wide variety of options are available when it comes to your auto insurance - there are a number of different types of car insurance you can choose from - so it can be difficult to decide just what type of auto insurance is the best choice for you, your vehicle and your budget.

1. Uninsured Motorist or UM Protection

Just because the law compels everyone to have insurance doesn't actually mean that everyone has auto insurance. If you are in an accident, even if a driver has a liability insurance policy, Texas has a moderately low minimum, so their liability only may not cover all of the costs that can go along with the wreck. You don't want to get stuck with the bills in an accident that isn't your fault; uninsured motorist protection will guard you from this.

Be careful to do your research though, a policy that covers damage by an uninsured motorist isn't as clear-cut as other policies. In theory, even if a driver doesn't have enough insurance to cover damages during an accident, he will still have an obligation to cover the costs out of pocket.

2. Personal-Injury Protection and Medical Insurance

Medical costs connected with treating wounds after a car accident can be very expensive. In order to cover those costs, medical and personal-injury protection is available to add to your Texas auto insurance policy. No matter who is at fault, this protection will cover your medical bills along with those of your passengers when there is an accident.

This type of extra insurance may not be necessary for you if you have a good health insurance plan that will cover the costs of your emergency medical expenses. What this type of insurance coverage is most useful for is protecting your passengers and protecting your wallet from paying for your passenger's injuries in the event of a wreck.

3. No-Fault Insurance

No-fault insurance is a new type of auto insurance that is available in only a limited number of U.S. States. This type of insurance will cover injuries and property damage, regardless of who is at fault in an accident. The decision to choose no-fault insurance depends on what other insurance options are accessible for you and what

4. Gap Insurance

When you are leasing a car or still making car payments on a new car, gap insurance is a smart choice. This type of insurance is made for drivers who still owe money on their cars and will be responsible to pay off the vehicle if it is totaled in an accident. It's usually a good choice if you owe more on your car than you would be able to pay off on short notice.

Gap insurance is also valuable if you owe more on the car than you would get back if you sold it today. Because most insurance policies will cover only the value of the car as it is on the day of the accident, not the cost to replace it, so without gap insurance you could find yourself under water or upside-down paying for a car you don't even have anymore. Many lenders may require you to have gap insurance or something similar until you pay off the vehicle




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