High Policy Limit: Everything You Need To Know
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Drivers must buy insurance before getting behind the wheel. Insurance protects them from being sued if they injure someone else. Collision coverage covers damage to your own vehicle, and comprehensive coverage covers damage to other vehicles or property. Your lender may require you to have both kinds of coverage.Types of Auto Coverages
Auto insurance covers many things.Liability covers damages to your car and the other driver's car.Property Damage covers damage to the other driver's car and any objects inside it.Medical payments pay for the other driver's medical bills.Uninsured Motorist Coverage pays for the other driver's injuries if you are driving an uninsured vehicle.Collision pays for repairs to your car and the damaged parts of the other driver's car but does not include liability coverage.Comprehensive covers damage to your car and the contents of your car.
Liability insurance protects you from being sued when you're at fault for causing injury to someone else. You need to decide how much liability insurance you want to purchase. The minimum amount of liability insurance is $25,000 per person and $50,000 per accident. This means that if you were involved in a fatal motor vehicle accident, you'd be responsible for paying any medical bills, lost wages, property damage, and funeral costs incurred by the victim's next of kin.
Your comprehensive insurance covers any other damage caused by theft, fire, vandalism or flooding. Medical payments cover medical expenses.
Personal injury protection covers medical expenses as well as lost wages and other non-medical costs. Uninsured/underinsured motorist covers medical expenses as well. This type of insurance is required in every state. You must be offered this coverage. If you do not want it, you must decline it in writing.
Towing and labor coverage pay when your car needs repair work.
Rental reimbursement coverage helps you rent a car if your vehicle gets stolen or damaged. Some policies also help you get around town by taxi or ride-sharing service.What Does My Policy Cover?
Coverages vary by policy and depending on what type of coverage you choose. Most policies cover damage to your car due to fire, hail, theft, etc. Some policies don't cover accidents that happen while you're riding for a ride-hail service or delivering food. Your policy may also not cover damages caused by flying gravel or hitting an animal. Renting cars isn't as safe as owning your own car. You should always be careful when renting a car. If you rent a car, make sure it belongs to you. Also, if you drive a company car, make sure you know how to use it properly. Don't take risks. Be careful.What Happens if I Buy a New Car? Is It Covered?
When your current insurance covers a new car, it won't last long. You need to tell your insurance company about the new car as soon as possible to avoid a lapse in your coverage. Your insurance company may offer a different plan if you buy a new car.Know Your Policy.
You should read your auto policy carefully. Make sure you know what is covered by your policy. Your agent, broker, or insurer may tell you about any exclusions. You should call them if you do not understand anything about your policy. Tell them if you sell or buy cars or have new drivers in the house. You should also read your policy before allowing other people to drive your car. Drivers who are excluded from your policy won't be covered in case they cause an accident while driving.Each Kind of Coverage Has Its Own Limits.
Each type of coverage has a set limit. Insurance companies won't pay out more than what is listed on the policy. For example, if you have an automobile insurance policy that covers up to $50,000 per person, then your insurer will not pay out more than $50,00 per person. This means that if someone gets injured in an accident, your insurance will cover them up to $50,00. However, if someone else gets injured in the same accident, your insurance will not be liable for anything over $50,000.Minimum Auto Insurance Requirements
To meet the financial responsibility requirements needed for the registration of a vehicle, the minimum coverage required is $10,000/$20,000 per person/$50,000 per accident. Uninsured motorists are people who drive without insurance. They may be involved in accidents that cause injury or death.Liability Insurance-Bodily Injury & Property Damage Liability
Insurance covers you, and any other driver using your car, in case you cause an accident resulting in injury or death. Your car's owner may be liable for damages caused by your negligence. If someone sues you for injuries, your insurer pays the costs of defending you. You pay for your own attorney, but your insurer provides free legal help.
When you're in an auto accident, you should always check your driver's license and proof of insurance before getting into the vehicle. If you're injured in an auto accident caused by another driver, you can file a lawsuit against that driver's insurance company for any damages incurred. Your medical bills lost wages, and pain and suffering are compensable under this law. If you were injured while driving, you need to report the incident to the police. Sues another party is your own personal action but doesn't involve your insurance company.
Your insurer under your own policy, isn't required to provide or pay a lawyer you might want to handle your claim against someone else. If you decide to file suit, your insurer under your policy won't cover the legal fees. You'll have to pay them yourself. Even if your spouse is covered by your auto policy, he/she won't get any benefits if you're sued by another person.Impacts of Insurance Policy Limits
Insurance companies set the limits on how much money they'll pay out for injuries caused by accidents. Insurers often try to make sure injured people settle for less than what they're really worth. This means that insurance companies might refuse to pay out as much as possible for injuries.
To help you with your legal case contact an accident lawyer in Harris County, Galveston County, Fort Bend County, Montgomery County, Brazoria County, Houston, Sugar Land, Missouri City, Stafford, Texas at Thornton Esquire Law Group, PLLC at www.thorntonesquirelawgroup.com with extensive experience handling vehicle accidents and other complex injury cases.