7 Little Known Facts a First-time Texas Auto Insurance Policyholder Should Know

While on the road, uncertainties can strike when you least expect them to. For instance, your car can cram into another vehicle or knock down a pedestrian crossing the road. In such cases, the only protection you can have is your insurance. In Texas, it is a requirement as a car owner to have automobile liability coverage. Texas has shown proclivity in an increase of accidents as the state tops the nation in car accident deaths. In 2013, close to 3,377 people died in motor vehicle crashes and many others sustained injuries. Having an auto insurance policy helps protect you from financial burdens that are likely to come with vehicle accidents. Here are 7 facts that many first-time or even existing auto insurance buyers maynot be aware of.


1. It may not be obvious that your auto liability insurance will protect other people


An auto insurance policy does not only protect other people from the damage that you may cause as a driver, but also protect you from what you could lose. For instance, it protects you from losing your assets to the victim, which can be used as a way of compensation for damage that you might have caused. The same applies if a reckless driver hits you; their coverage is not there to shield you but to protect them if the victim sues them.


2. What Texas court says about insurance carrier


Many of insurance holders never take the initiative to understand every clause of their policy until they are involved in an accident, and doing so is a big mistake on the part of policyholders. It is always emphasized that insurance policy buyers should seek clarification on the terms of the contract they do not understand.


According to Texas courts, insurers owe their duty of offering claims to a negligent policyholder. This means that auto insurance carriers are there to protect the driver who is covered by the policy and not the people who are hurt by that driver. To interpret this, if a vehicle hits you, and the driver is considered to be at fault, the driver’s insurer is to protect that driver and not you.


3. Insurers can softly deny bodily injury claim’s but grant property damage payments only


Handling claims and compensations isn’t an easy thing. This is where the auto Insurance law applies, and the policyholders, because of their ignorance, may have to bear some burden. For example, a Texas Auto Insurance company may avoid releasing a bodily injury claim and instead release a property damage payment. This means that an injured person is deprived of any rights to seek compensation for injuries, but only receive compensation for all damages to their car.


Texas courts perceive such behavior as okay provided that the auto insurance company did not lie about the matter. In other words, whether the compensation was made in its entirety or not, the insurer has fulfilled their duty–that’s to protect its client, the policyholder. In this case, you may want to seek for an independent advice when pursuing claims following an accident.


4. You don’t have to be in a car in order to make use of your car insurance Texas State Policy


You could benefit from cheap auto insurance in Texas even if you were not in the car at the time accident. For instance, if another driver as a pedestrian or a bicyclist hits you or another person covered by your Texas Auto Insurance policy, the coverage for the driver at fault should be able to pay for the injuries. If, however, the particular driver is uninsured or underinsured, the option available is to make use of your uninsured motorist coverage.


5. Your personal items aren’t covered if stolen or damaged in your vehicle


You are unlikely to receive compensation through auto insurance for personal items damaged at the time of an accident or if stolen from the vehicle. A different coverage takes care of such losses. In most cases, a homeowner’s policy and not an auto insurance policy takes care of these kinds of items. Otherwise, if you are fond of taking pricey items such as GPS device, jewelry, watch, or laptops into your car, you may want to carry a rider to protect those things. On top of that, you should have photographs of those items.


6. Your auto insurance may be tax deductible for business use


If you are an independent contractor, self-employed or use your car for business activities apart from driving to and from work, you may enjoy a tax-deductible feature on your auto insurance. The amount of time you use the car for businesses purposes should be calculated, as it is the portion that receives tax-deductible benefits. Otherwise, you may consider a flat per mile reimbursement.


7. Little inaccuracies can greatly affect rates for your Texas Auto Insurance


You might not be aware that little inaccuracies in the provision of information about your vehicle may affect an auto insurance premium rates. Mistakes, such as the wrong model of car listed, incorrect mileage, and mistaking 2-door for a 4- door car are common and have a great impact on rates. Therefore, make the information about your vehicle is listed properly on the auto insurance coverage.


A vehicle owner seeking for an auto insurance coverage will need to understand the ins and outs of coverage in order to make informed decisions when purchasing the right policy. A auto insurance policy is not just about protecting an individual from damages caused to them, but there is more than that. Failure to know some of the factors that influence auto insurance could result in increased premiums, wrong insurance coverage choice, or inappropriate changes in the policy.