What is insurance in the automobile world? What does this do for you, do I really need insurance?

Automobile insurance is a contract between you and your insurance agency that protects you against financial loss in the event of an accident of theft. With paying your premium in exchange the insurance company will pay your losses as explained in your insurance policy agreement.

Texas law requires drivers to show proof they can pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver’s car, or other damaged property, and pays other people’s medical expenses when you’re at fault in an accident.

Kinds of auto insurance coverage and is it mandatory?

Auto insurance requirements depending on the state you live in. If you’re financing a car, your lender may also have its own requirements. Nearly every state requires car owners to carry:

  • Bodily injury liability – covers costs associated with injuries or death that you or another driver causes while driving your car.
  • Property damage liability – Reimburses others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building or utility pole.
  • Medical payments or personal injury protection (PIP), which provides reimbursement for medical expenses for injuries to you or your passengers. It will also cover lost wages and other related expenses.
  • Uninsured motorist coverage reimburses you when an accident is caused by a driver who does not have auto insurance—or in the case of a hit-and-run. You can also purchase under insured motorist coverage, which will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident.

Visit us at Payne Insurance Group for all your insurance questions, our insurance agents are ready to help you find the right coverage for you. If you have a Vehicle, Motorcycle, RV, ATV or own a Business we can find the right coverage for you. Visit us online or call us for a free insurance quote or if you have any questions.