1: Understand your minimum required limits of insurance.
In most states you are required meet specific liability limits for bodily injury and property damage. These requirements are designed to protect both you and the public. Texas does not require you to insure for physical damage. For auto insurance in Texas the minimum auto liability limit is $30,000 bodily injury per person, $60,000 per accident and $25,000 for property damage ($30,000/$60,000/$25,000).
2. Now…consider what the minimum buys you. Is it adequate for your personal needs?
As stated above, our state has a minimum liability limits of $30,000/$60,000/$25,000. More often than not, customers purchase insurance to satisfy the States needs, not their own. Just consider an accident injuring 4 people, 2 of which require $25,000 in medical attention. That only leaves $10,000 for the other two passengers to share who are severely injured if you carry the state minimum liability limits. How much liability limit you should purchase depends on a number of factors, such as the value of your personal assets. If you feel you might require higher liability limits, contact us today and evaluate whether or not it is necessary.
3. Consider a combined single limit (CSL) as opposed to split limits.
Just think about the split limit scenario above. Let’s say you injure four people in a car accident and two of the injured require $25,000 for medical care. If you have a $25,000 per-person limit with a maximum per accident of $60,000, you may be personally sued by the other injured parties for the amount in excess of your limits they required in medical treatment. But if you had purchased combined single limits, you would then have a bucket from which to pay all injured parties up to the limit purchased. So, it may make sense to purchase a combined single limit.
4. Uninsured/ Underinsured motorists coverage is highly recommended!
Just think of the minimum state limits most people purchase! If they cause an accident in which you are severely injured, would $30,000 be sufficient? Or what if they had no insurance? To protect yourself and your family, consider buying both uninsured and underinsured coverage with your car insurance. This coverage will pick up where the third-party either fell short or left off.
5. Protect your cars value with physical damage coverage.
If you have an automobile loan or are leasing your car, you will be required to purchase physical damage coverage to protect the lending institution. If something happens to your car, physical damage coverage will pay to repair or replace your car. So whether you are required to by your lender or not, you should consider purchasing this coverage to avoid expensive repairs caused by an accident.
6. Selecting your comprehensive and collision Deductible.
The physical damage coverage portion of car insurance has a deductible. This means if any damage is done to your car, the insurance company will pay the amount to repair or replace your car and you pay the deductible. If you take a low deductible, like $250, the insurance company will have to pay more to have your car repaired and, consequently, you will pay a higher premium. The higher your deductible, the lower the premium. Consider choosing the highest deductible you can afford, but realize you will then have to pay if the damage you’ve incurred does not exceed your deductible.
7. Ask us what car insurance discounts are available.
There are a number of car insurance discounts available to drivers. There is a discount for insuring multiple cars, for taking safe driving courses, for good student drivers, and there may even be a discount for having your car insurance policy with the same company that insures your home. To find out about all the discounts you may be eligible for, ask you independent agent today!
Now that you understand just how important your coverage and limits of insurance are to protecting yourself against lawsuits, vehicle damage, or uninsured drivers, we ask that you contact us today at (800) 218-3535 to speak to one of South Texas Insurance Services Independent Agents.
“Together, we work hard to earn your trust!”- South Texas Insurance Services