Auto Insurance

Make it simple-Car insurance

    Have you tried to read your insurance policy and just given up? It can be very confusing! But I am going to try to simplify it for you. Over the next several weeks I will attempt to simplify each type of insurance, begining with Car insurance:

    Every policy should have a Declarations Page. 

This page “declares” who you are, what cars you have insured, your coverage choices and how much you are paying for this policy period.

    There are 2 types of coverage on your auto policy: Coverage that protects the other party and coverage that protects you.

Coverage that protects the other party:

Bodily Injury Liability: protects you from having to pay medical costs, lost income and funeral expenses of other people involved in an accident that is your fault.

Property Damage Liability: Protects you from paying for the repair or replacement of the other person’s car.

            There is no deductible for liability coverage. You have many amount options for this coverage. The state minimum in Texas is $30,000/$60,000/$30,000. This means you are covered for $30,000 per person/$60,000 per accident and $30,000 for property damage. I would suggest liability in higher limits than the state minimum. If you cause an accident and the liability claim is 75,000, if you have state minimum coverage, you will pay the additional $15,000 out of pocket. It is not expensive to increase your liability limits. Ask your agent to explain your options.

Coverage that protects you:

Uninsured/Underinsured Bodily Injury: covers your injuries (or death) in case the responsible party has little or no insurance. It also covers those riding in your car.

Uninsured/Underinsured Damage: covers damage to your car or property in case the responsible party has little or no insurance.  There is a state mandated $250 deductible in Texas for Uninsured/Underinsured motorist coverage.

Medical payments: covers medical or funeral expenses if you or anyone in your vehicle are injured in an accident.

Personal Injury payments: covers medical or funeral expenses and possible lost wages if you or anyone in your vehicle are injured in an accident.

Collision Coverage: pays for damage to your car if you hit another car or something else (like a tree or a building).  You must pay a deductible. Deductible amounts determine the cost of this coverage. The higher the deductible, the lower the premium.

Comprehensive Coverage: (also called Other than Collision) pays for damage to your car if something other than a collision occurs. This could be fire, theft, hit by an

Animal (yes, the animal hit your car!) The same type of deductible rules apply to Comprehensive as they do to Collision. They are two different deductibles though.

Optional Coverages that protect your car:

            Towing: pays for towing and some basic roadside assistance, depending on the carrier and towing option you choose.

            Rental Reimbursement: pays for the cost of renting a car while yours is being repaired after an accident.

            Loan/Lease Gap Insurance: pays the difference between what you owe and the total value of your car if it is totaled in a claim. This is only valid if you have a new car (less than 3 years old).

So there you go. There are many factors in Car insurance, but they don't have to overwhelm you. If you have any questions, please contact your agent. That is what they are there for. If they cannot answer your questions, please contact us. 

   If you have questions about your home, auto and commercial insurance, please call Brockman Premier Insurance at 877-987-8683 or email us at brian@brockmanpremier.com.
Please visit our website for more insurance tips and information.

Shopping for Auto Insurance

How Do You Get the Most in Your Auto Insurance?

    I have lost count of the number of auto insurance companies in Texas. There are all types out there. Those who sell "preferred policies" to those who sell "junk policies." The type and amount of coverage you have matters. In the case of an accident, your coverage can make or break you.
   There are many coverages for you, as a consumer, to consider. Most states require every driver to have Liability Insurance. In Texas, you must have at least $30/$60/$30 in liability. This means if you are in an accident and you are at fault you have coverage to pay the other party $30,000 per person and $60,000 per accident  for damages and medical. It would also cover $30,000 for property damage. This may sound like quite a bit of coverage, but expenses accumulate quickly after an accident. And what if the other party has long term medical expenses? The minimum I suggest to clients is $50/$100/$50, but I would seriously consider raising your liability to $100/$300/$100 or higher. The cost to raise your liability is usually minimal and it can save you more than you will ever pay in insurance premiums. 
   Where Liability will cover the other party, Comprehensive and Collision coverage will cover your car if you are at fault for an accident. Comprehensive covers you if something "hits" you- a deer jumps in front of your car, a thief steals your car, a storm floods your car, a rock hits your windshield. It is not usually too expensive. You can affect the price by changing your deductible. If you have a $500 deductible, the carrier will pay for damages minus $500. If you have a $250 deductible, it will cost you more in insurance premium, but you will pay out less in the case of a claim. If you have a $1,000 deductible, it will cost you less in premium, but more out of pocket for a claim. There is no right or wrong amount. It is your choice. The same applies to Collision deductibles. Collision covers you if you hit anything- another car, a tree, a house (don't laugh - it happens!) It is usually the most costly coverage, so people find the deductible decision very important for this coverage. If you have an older car, you may consider removing Collision altogether. Just know if you do that, you will not have any coverage to pay for repairs to your car if you are at fault in an accident. 
   Rental and Towing are great coverages. But if you have several cars, you may want to forgo the rental coverage to save money. Towing isn't usually costly and it can come in handy! 
   Uninsured Motorist is always a debate. Many drivers don't think it is necessary. I would caution you against removing this coverage. If you are in an accident and the other driver doesn't have any insurance or not enough insurance (like those carrying minimal liability), your UIM coverage will cover you. It is estimated that 20% of registered Texas drivers are driving without insurance. Add in the "unregistered" drivers and it gets scary. Without UIM coverage, you are self-insuring. Can you afford this? I bet it will cost you less to have the coverage than to not have it if you are in an accident.
   There are a few things to keep in mind when shopping for insurance. Talk with an independent agent who can shop several carriers for you. Find an agent you trust- talk to them, ask questions. Make them earn your trust. Make sure they know you expect good service throughout the life of your policy, not just during the sales process. 
   If your child goes to college more than 100 miles away from home and doesn't take a car, you can remove them from the policy. Or most carriers will list them as a "distant student" which gives you a nice price break on their coverage. This way they can drive when they are home from school. 
   And last but not least, keep your credit score high. Good credit = better pricing. It is just the way of the world. Good credit means you are less of a risk. Now, we know that isn't always true, but the numbers say it usually is. Carriers live by the numbers. 
   Shop for what you want in a policy. Do not just go with the first person you talk to. Ask your friends and family for recommendations. Ask them why they like the agency. Pricing is important, but so is an agent and carrier who will take care of you when you need them. 
Do not settle. Expect more!

Do you have questions about your home, auto or commercial insurance? 
Call Brockman Premier Insurance:
Local: 214-592-0859
Toll Free: 877-987-8683
or email: brian@brockmanpremier.com
Visit our website for great tips! www.wekeepuinsured.com
 

Auto Liability coverage

Yes, it is worth the cost!

   We all know it is illegal to drive without Liability insurance. (At least I hope you know) But why is it so important that the states require it? Is the other coverage important, even though it isn't required by law?
Does it really protect me? Yes. Yes it does. But there are many levels of protection and this is where you have some decisions to make.

 Liability Coverage

This pays for any damage you inflict, on other drivers in an accident. I never liked that word "inflict"? It insinuates you found the guy, sped up to 100 mph and rammed his car. Let me put it in a more fair sounding way. If you are found to be at fault, Liability will pay for the damage done to the other drivers car and body, or bodies if he has passengers. There is a state minimum, but other than that, you will get to pick the amount. The choices usually fall to $30/60, $50/100, $100/300, $250/$500 and so forth. These are in the thousands (so $30/60 is actually $30,000/60,000)

Bodily Injury Liability 

This pays for the cost of any injuries, including death, of a person as a result of an accident you cause. It would cover medical bills, loss of income, pain and suffering. If you end up in a lawsuit, it is important you have enough liability coverage to handle any monetary judgement that is handed down. If you do not have enough insurance coverage, you are still responsible for the remaining damages amount. Bodily Injury is only for the "victims" of the accident. It will not cover your own medical bills. Again you can choose the amount of coverage you wish to have. So think of the worst case scenario and pick the amount of coverage you want.

Property Damage Liability

This pays for the damage you and your vehicle do to another person's property. It usually used for the other car in the accident, but it also covers fencing, plants, trees and houses. It is not required in most states, but it is worth the cost. If you hit a Mercedes or someone's home, can you cover the cost of repairing or replacing?
Again you can choose the amount of coverage you wish to have. So think of the worst case scenario (like hitting that Mercedes) and pick the amount of coverage you want.

Coverages Other than Liability

Liability is a very important coverage, but it is not the only one.
Uninsured/Under-insured Coverage: This will cover the costs associated if you are hit by someone with no insurance or not enough insurance. This is not required by law, but it is a coverage I will always talk to my customers about. I have a friend who was hit by a drunk driver one night. The other driver had no insurance, nor was he a US citizen so there was no way they could go after him for damages. My friend had $50,000 in hospital bills (2 surgeries) and missed 10 weeks of work. If he didn't have Uninsured Motorist coverage, he would have had to cover those costs himself. That's a scary thought!
Collision Coverage: This covers your car if you hit anything. This is one that many people opt to reject, especially if they have older cars. It can be expensive and you will have a deductible. You need to decide if it will save you enough money in premium to cover the cost of repairs if you are in an at fault accident. Also keep in mind, if you are paying off your car, or if you have a lease, the company you are financing through will most likely require this coverage.
Comprehensive Coverage: This is also known as "other than collision" coverage. It covers your car if something hits it. This could be a tree falling on it, flooding, theft, a deer hit you. Yes, you did not hit the deer, it jumped in front of your car.
None of these coverages are mandatory, but the expense of the coverage can be far outweighed by the expense of the repairs. We call it "self insuring" and most people cannot afford to self insure. But other than the Liability, you get to decide if you want a coverage or not.
There are other bells and whistles coverage like rental, towing, stereos and rims. These coverages are meant to make your life a little easier, not as much protect you. It is always good to have coverage, but it may not be necessary to have every piece of coverage. Insurance is in place to protect you, but you have to make the decision as to how much is worth the cost.

Any questions? Please give us a call at Brockman Premier Insurance
local: 214-592-0859
toll free: 1-877-987-8683