How Much Uninsured Or Underinsured Motorist Coverage Do I Need
Approximately 12 percent of the cars on the road do not have insurance, according to the Texas Department of Insurance.
If you sustain injuries or property damage in an accident caused by an uninsured driver or a driver with insufficient insurance to cover your losses, then your only option for seeking compensation may be to file a claim against your UM or UIM coverage.
Its typically wise to purchase as much UM and UIM insurance as you can. At Kraft & Associates, P.C., we recommend at least $100,000 per person and $300,000 per accident in UM and UIM bodily injury coverage. You should also purchase UM and UIM property damage coverage equal to the value of your car.
What Does Comprehensive Car Insurance Cover
Comprehensive insurance helps cover vehicle repair costs or replacement after a noncollision event that doesnt involve another driver, though the extent of comprehensive coverage may vary by policy. Here are some situations where comprehensive insurance could come into play.
- Theft-related damage or vandalism to your car
- Damage from a natural disaster like a flood, fire or hailstorm
- Damage from an animal
- Damage from a falling object
Comprehensive insurance can help fill in certain coverage gaps on your policy. For example, its likely that your state requires you to have liability insurance. But liability insurance only helps cover damage you cause to another persons property in a collision it doesnt cover damage to your own car.
What Liability Auto Insurance Doesnt Cover
Liability auto insurance wont pay for your own medical bills or repairs to your car its only designed to pay others for the damage you cause behind the wheel.
To cover your own bills, youll need to rely on other types of insurance, such as health insurance for your medical expenses and collision insurance for repairs to your vehicle. If you want more protection, consider buying full coverage car insurance. Full coverage isnt a specific type of policy, but refers to a combination of coverage types including liability insurance and comprehensive and collision coverage.
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What Is Full Coverage Insurance
“Full coverage insurance” is an informal term used to describe a car insurance policy that offers a wide variety of coverage options for many different scenarios. Certain types of car insurance, such as auto liability insurance, are mandated by the state. The types of insurance that are required by law typically cover essentials like protection from bodily injury and property damage. However, other types of coverage, such as collision and rental reimbursement, are optional and depend on the policy holder’s preferences. Full coverage insurance policies typically have higher premiums than other types of policies.
Does Car Insurance Cover Car Repairs
If your vehicle was damaged due to a collision or other covered incident, such as a fire or theft, regular car insurance might help offset the cost for repairs. However, repairs for routine mechanical breakdowns as well as normal wear and tear are usually not covered in an insurance policy.
According to the National Association of Insurance Commissioners, vehicle maintenance, including oil changes, is usually not included with your policy. Also, a mechanical failure or blown engine will likely not be covered when it comes to replacing or repairing your vehicle.
Carrying collision coverage can help you pay for repairs if your vehicle is damaged from an accident with an object or another vehicle. This coverage usually protects you if you’re involved in a single-vehicle accident or from hitting a pothole. It also helps if your vehicle has mechanical issues or sustains body damage because of the collision.
Another type of coverage is comprehensive insurance that can offset the costs of repairs. This coverage gives you protection from damage caused by the following:
- Animal damage
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How Will I Know If My Car Has A Factory Recall
A recall is issued when a car manufacturer or the National Highway Traffic Safety Administration determines that a car, car seat, equipment or tire creates a safety risk or fails to meet minimum safety standards.
If your car has an open recall, your car manufacturer will notify you via mail. Make sure you keep your vehicle registration up to date, including your mailing address.
While car repair insurance wont cover factory recalls, federal law requires the auto manufacturer to fix the problem free of charge. If your dealer or manufacturer refuses to fix the problem, you can file a complaint with NHTSA.
If you didnt receive a recall notification from your car manufacturer or you want to check if theres an open recall, check the car manufacturers website or Safercar.gov and search by the cars vehicle identification number . Your VIN is a 17-digit number thats etched on the cars driver-side windshield. Its also on your vehicle registration or insurance card.
The number of cars on the road with open recalls declined in 2020 from the previous year, according to a recent Carfax report. There were 53 million cars on the road that havent been repaired compared to 55.7 million vehicles in 2019. In 2021, minivans and pickup trucks are the most likely cars to have open recalls, according to Carfax data.
Southern states have the highest percentages of vehicles with open recalls. Mississippi has 26% while Texas and Louisiana have 24% of vehicles with open recalls.
Do You Have To Pay A Deductible For A Windshield Claim
Comprehensive insurance typically includes a deductible, which is the amount youll pay out-of-pocket if you file a claim. Common deductible amounts are often between $250 to $1,000. For example, if you have a $500 deductible and it costs $250 to replace your glass, the cost of replacement is less than your deductible amount, meaning you would have to pay for the replacement yourself.
Some insurance companies sell full glass coverage or zero deductible option for glass replacement, which is an option separate from your comprehensive deductible. This option will cost you extra, but it could save you in the long run if you have a high deductible such as $1,000 deductible .
A few states have zero deductible mandates that say auto insurance companies cannot apply a deductible for comprehensive insurance glass claims. For example, Florida statute 627.7288 says that a deductible for comprehensive coverage does not apply to motor vehicle glass.
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How Can I Tell If My Engine Is Blown
There are a few signs your car will give you if there is an engine problem or mechanical failure. If you notice a large amount of exhaust smoke, metal shavings in the oil, a lack of power or smoke coming from under the hood, it may be a sign of engine trouble. To prevent further damage, you should not drive the car and have it looked at by a mechanic if you notice any of these signs.
What Kind Of Repairs Does Car Insurance Cover
Most states require you to have car insurance. In the states that require it, you usually only have to purchase a minimum amount of certain coverages, often just liability insurance . Itâs always optional to purchase comprehensive and collision coverage, which are the two types of insurance youâd use to cover repairs to your own vehicle.
Car insurance does not cover regular repairs, but it does cover repairs you need to make as a result of an accident, vandalism, or some kinds of bad weather, as long as you have comp and collision. If youâre worried about how youâd be able to afford those types of repairs, look into adding comp and collision coverage to your auto insurance policy.
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What Incidents Does Comprehensive Auto Insurance Cover
Comprehensive coverage provides protection for a wide range of events. If your auto policy includes comprehensive coverage, your insurance may cover damage resulting from natural disasters, fire, riots and vandalism, theft, falling objects and impacts with animals on the road. Each companys coverage may differ slightly, so talk to your agent to clarify the specific coverages on your policy.
Does State Farm Offer Windshield Coverage
Lets say youre driving down the road when a rock flies up and cracks your windshield. Do you know what to do next? Does your insurance policy cover cracked windshields? What if the damage is extensive and requires a lengthy stay at a repair shop? Does insurance cover auto glass repair? If you have State…
Lets say youre driving down the road when a rock flies…
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Does Plpd Insurance Cover Theft
PLPD insurance does not cover theft, as this is considered damage that affects you, not another driver or owner of property you might have damaged with your vehicle. Instead, theft falls under whats known as comprehensive insurance, which addresses any repairs to your car which might take place outside of a collision. That includes hail damage, falling trees, vandalism, and theft. However, even comprehensive insurance will not cover the items stored in your car when it was stolen.
While PLPD does not cover theft, it does provide coverage in the event of an accident. As a result. if you are involved in an accident, and especially if the accident is your fault, the premiums for your PLPD insurance will likely rise. That means its more important than ever to comparison shop for the best rates. Know whats required in your state, and compare quotes from several insurance companies.
You need enough liability insurance to cover your net worth. Having coverage equal to the value of the assets you own and all the money you have, minus your debt, protects you financially in case of a serious car accident.
What Is The Difference Between Collision Insurance And Property Damage Liability
The difference between collision insurance and property damage liability is another major confusion among drivers. Collision insurance is when you get into an accident and your vehicle gets damaged. The auto insurance company will pay for the damages caused to your property and not the victim.
While property damage liability will cover the charges for the damage caused to the other persons property. You will not get coverage for your personal property damages.
Lets understand this with an example
- you get into an accident with another car, now both the cars are damaged.
- The cost to repair the damages of another car will be covered in your property damage liability. It will be based on the limit of your coverage in the policy.
- If the policy limit is $5000 and the cost of repair is $7000 then you will have to pay $2000 from your pocket. Along with that, the cost of damage repair in your car will also be covered from your pocket.
- But if you had collision insurance then the cost to repair your car and the extra $2000 for the repair of another driver will be covered by the collision insurance policy.
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Making A Claim With The Other Driver’s Insurer
If the other driver was at fault for your car accident, you probably have the option of filing a claim with the other driver’s insurance company in order to get your car repaired or replaced. This is known as a “third party” insurance claim. Learn more about making a third-party claim for vehicle damage after a car accident.
If The Airbags Deploy Is The Car Totaled
If the airbags deploy, is the car totaled? There is a common misconception that your vehicle is a total loss when your airbags deploy. The reason for this misconception is that airbag deployment is usually involved with a significant crash. Even though a crash can be severe enough to set off the airbags, this doesnt…
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Shop Around For The Lowest Insurance Premiums
Your premiums will vary from one insurance company to another. It’s important to shop around, ask for quotes, and compare prices before deciding on one insurance company. In some cases, you may be eligible for a discount by combining your home and car insurance.
When shopping for a car, check the insurance rating for the car you’re thinking of buying. Insurance companies assign ratings based on the claims made on different makes and models. Cars with better ratings are cheaper to insure. You can get rating information from:
- your insurance company, broker or agent
In most provinces and territories, an insurance company can charge higher premiums based on your credit rating.
Does Car Insurance Cover Mechanical Problems
While full coverage auto insurance offers reassuring benefits in an accident, typical mechanical problems aren’t covered.
If you’re driving down the highway and your engine sputters and shuts off, full coverage car insurance won’t help pay to fix it. Or if you have to make a sudden stop and your brakes malfunction, full coverage car insurance doesn’t cover the cost of installing new calipers.
Full coverage auto insurance also doesn’t cover normal wear and tear areas like tires, brake pads, oil changes, or spark plugs.
While your vehicle is still under the original manufacturer’s warranty , many mechanical fixes are covered. But once it expires, you’re responsible for any necessary mechanical fixes, which can become expensive.
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What Additional Coverages Should I Consider
Rideshare insurance is a smart choice if you drive under a ridesharing platform like Uber or Lyft. Rideshare coverage fills the gaps between your personal insurance and any insurance provided by the ridesharing company so youre always protected, whether youre waiting for a ride request or dropping someone off. Learn more about how rideshare insurance works.
Gap insurance, also known as loan/lease payoff
If youre leasing or financing your vehicle, gap insurance may be right for you. This optional coverage pays the difference between what you owe on your vehicle and how much its worth. So, if your car gets totaled, youll receive the actual cash value of your vehicle, plus the additional amount you owe on it so you can pay off your loan or lease. Bear in mind, youll need comprehensive and collision coverage to add gap coverage. Learn more about gap insurance.
When choosing auto insurance coverages, always keep in mind how much you could afford to pay for injuries, damages, repairs, or even a new car. The right policy is rarely the cheapest one possible, but rather the cheapest one that gives you all the coverage you need to get peace of mind.
Repairs Due To Parts Failing
Though modern cars are reliable, parts can wear out or malfunction and a car insurance policy will not cover you for this. If the car is fairly new, it may still be covered by the manufacturers warranty and this will pay for repairs. If your warranty has run out, you can purchase an extended car warranty that will cover certain repairs.
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How To Fix Cosmetic Damage From A Collision
If a collision caused cosmetic damage to your car, your collision coverage might cover the cost of repairing the dents and scratches. Collision coverage protects your car if you cannot prove that the other motorist was at fault for the accident.
In the event of a minor accident, your insurance provider will reimburse you for the cost of replacing your bumper, repairing a ding in the door panel, or addressing any other cosmetic damage that may have occurred.
Both collision and comprehensive coverage have deductibles that vary from $100 to $2,000, depending on the carrier. It makes sense to pay for the damage out of pocket if the repair expenses are less than your deductible.
If the damage is more significant and costly, filing a claim for repairing any dents or scratches may make sense. If your deductible for comprehensive coverage is $500, it makes sense to file a claim if you are the victim of a keyed car that caused $3,000 in damage.
Does It Ever Make Sense To Have Liability
There are some instances where only carrying liability coverage makes sense. If your car doesnt have much in the way of cash value, it might not be worth it to carry comprehensive or collision coverage. Drivers who can afford to replace their car out-of-pocket may not want to spend the extra money on full coverage car insurance.
Commonly referred to as the 10% rule, if your annual cost for full coverage would be more than 10% of the vehicles actual cash value, you can drop your comprehensive and collision coverage.
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Does Car Insurance Cover Damage To Tires
Having adequate insurance coverage can help protect you if youre in an accident or another covered event damages your vehicle. Car insurance may even help pay for tire damage in certain situations. But what your policy covers depends on how the tires were damaged and what types of coverage you have.
Types Of Cosmetic Damage Not Covered By Car Insurance
Wear and tear: Car insurance covers unforeseen and unplanned events. However, it excludes regular wear and tear, including dents, scratches, door dings, and paint damage that may occur as the car ages.
The time frame for filing a claim: Many insurers impose time limits that must be adhered to when filing a claim. Your insurance company may refuse to pay for a ding or damage that occurred years ago. So ensure that you file a claim as soon as possible after an accident.
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