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| Protecting Your Family and Property |
— Comprehensive Coverage
Sometimes there is physical damage done to your car caused by factors other than collision. If you still owe money on your car, your lender will require you to have collision and comprehensive coverage. It pays the cost of replacing or repairing your car if it is stolen or damaged by fire, vandalism, hail or a cause other than a collision. Comprehensive coverage also pays for a rental car or other temporary transportation if your car is stolen. Your policy won’t pay for an auto theft unless you report it to police. Payment is limited to your car’s actual cash value, minus your deductible.
— Towing and Labor Coverage
If your car needs to be towed or repaired at a remote location, the service can be costly so this is good coverage to have. It pays for the towing charges when your car can’t be driven. It also pays labor charges, such as changing a tire at the location where your car became immobile.
— Rental Reimbursement Coverage
If you need to rent a car while yours is being repaired, having this coverage can offset the expense because it pays a set daily amount for a rental car if your car is stolen or is being repaired because of damage covered by your policy.
— Coverage for Stereo Equipment
Your policy won’t pay for CDs, tapes, cell phones, citizen band radios or stereo equipment not permanently installed in your car. However, you can buy endorsements to your policy that provide separate coverage for these items for an additional premium.
— Coverage of New or Additional Automobiles
If you buy another car, your policy might automatically cover it with certain limitations. Read your policy to know whether it automatically covers an additional or replacement car. In general, an additional car usually has the same coverage as the car on your policy with the broadest coverage. For example, if you have two cars—one with liability coverage only and one with liability, collision and comprehensive coverages—and you buy a third car, the third car will automatically have liability, collision and comprehensive coverage. A replacement car usually has the same coverage as the car it replaced. For example, if you trade in an older car that only had liability coverage, the new car automatically will have only liability coverage. Be sure to tell your insurance company as soon as possible that you have added or replaced a car and which coverages you want. You could lose coverage on an additional or replacement car if you wait longer than the number of days specified in your policy to notify your insurance company.
— Coverage for Rental Cars
Auto rental agencies offer collision damage waivers and liability policies. The collision damage waiver is not insurance. It is an agreement that the rental company will waive its right, with certain exceptions, to recover from the renter the cost of damage to the car. If you have auto insurance, your policy already may cover damage to a rental car. Your coverage limit, however, might be less than the value of a rental car. Read your policy to know what’s covered and the coverage limits. If your coverage limit is too low, consider increasing it. You will pay more in premium, but it might be cheaper than buying additional coverage through the rental agency, especially if you rent cars often. The Texas Automobile Rental Liability Policy provides liability insurance for renters who do not have a personal auto policy. If you don’t own a car, but borrow or rent cars often, you can buy a nonowner liability policy. A nonowner policy pays for damages and injuries you cause when driving a borrowed or rented car, but it does not pay for your injuries or damage to the car you were driving.
Auto Insurance for Young Drivers
Young drivers must comply with the state’s financial responsibility laws. Parents can usually add their children to their auto policy to satisfy the financial responsibility requirements. Adding a young driver to a parents’ policy can be expensive, but it’s cheaper than buying a separate auto policy.
Some policies require all drivers to be named on the policy for coverage to apply. Therefore, it’s important that you list all family members on the policy as soon as they reach driving age. If you don’t have all of the drivers in your family listed on your policy and the company learns about them later—because of an accident claim, for instance—the company will bill you for the extra premium you should have paid and could deny your claim and coverage.
If you have children attending school away from home, tell your insurance company. Because companies base rates on where a car is usually located, it might need to adjust your premium. If the school is in another state, check on the financial responsibility laws in that state to make sure you have the appropriate coverages.
Generally, if a teenager is the principal driver of a particular automobile, the company will base the teen’s rate on that car. Otherwise, the company will assign the teenage driver to the car (usually the most expensive) in your household that produces the highest rate.
— Removing Your Children from Your Policy
You may want to remove your children from your policy when they no longer live with you. You’ll probably have to prove to the insurance company that your child has moved. You can use documents like a driver’s license, lease agreement or utility receipts to show that your child has a separate address.
Sometimes there is physical damage done to your car caused by factors other than collision. If you still owe money on your car, your lender will require you to have collision and comprehensive coverage. It pays the cost of replacing or repairing your car if it is stolen or damaged by fire, vandalism, hail or a cause other than a collision. Comprehensive coverage also pays for a rental car or other temporary transportation if your car is stolen. Your policy won’t pay for an auto theft unless you report it to police. Payment is limited to your car’s actual cash value, minus your deductible.
— Towing and Labor Coverage
If your car needs to be towed or repaired at a remote location, the service can be costly so this is good coverage to have. It pays for the towing charges when your car can’t be driven. It also pays labor charges, such as changing a tire at the location where your car became immobile.
— Rental Reimbursement Coverage
If you need to rent a car while yours is being repaired, having this coverage can offset the expense because it pays a set daily amount for a rental car if your car is stolen or is being repaired because of damage covered by your policy.
— Coverage for Stereo Equipment
Your policy won’t pay for CDs, tapes, cell phones, citizen band radios or stereo equipment not permanently installed in your car. However, you can buy endorsements to your policy that provide separate coverage for these items for an additional premium.
— Coverage of New or Additional Automobiles
If you buy another car, your policy might automatically cover it with certain limitations. Read your policy to know whether it automatically covers an additional or replacement car. In general, an additional car usually has the same coverage as the car on your policy with the broadest coverage. For example, if you have two cars—one with liability coverage only and one with liability, collision and comprehensive coverages—and you buy a third car, the third car will automatically have liability, collision and comprehensive coverage. A replacement car usually has the same coverage as the car it replaced. For example, if you trade in an older car that only had liability coverage, the new car automatically will have only liability coverage. Be sure to tell your insurance company as soon as possible that you have added or replaced a car and which coverages you want. You could lose coverage on an additional or replacement car if you wait longer than the number of days specified in your policy to notify your insurance company.
— Coverage for Rental Cars
Auto rental agencies offer collision damage waivers and liability policies. The collision damage waiver is not insurance. It is an agreement that the rental company will waive its right, with certain exceptions, to recover from the renter the cost of damage to the car. If you have auto insurance, your policy already may cover damage to a rental car. Your coverage limit, however, might be less than the value of a rental car. Read your policy to know what’s covered and the coverage limits. If your coverage limit is too low, consider increasing it. You will pay more in premium, but it might be cheaper than buying additional coverage through the rental agency, especially if you rent cars often. The Texas Automobile Rental Liability Policy provides liability insurance for renters who do not have a personal auto policy. If you don’t own a car, but borrow or rent cars often, you can buy a nonowner liability policy. A nonowner policy pays for damages and injuries you cause when driving a borrowed or rented car, but it does not pay for your injuries or damage to the car you were driving.
Auto Insurance for Young Drivers
Young drivers must comply with the state’s financial responsibility laws. Parents can usually add their children to their auto policy to satisfy the financial responsibility requirements. Adding a young driver to a parents’ policy can be expensive, but it’s cheaper than buying a separate auto policy.
Some policies require all drivers to be named on the policy for coverage to apply. Therefore, it’s important that you list all family members on the policy as soon as they reach driving age. If you don’t have all of the drivers in your family listed on your policy and the company learns about them later—because of an accident claim, for instance—the company will bill you for the extra premium you should have paid and could deny your claim and coverage.
If you have children attending school away from home, tell your insurance company. Because companies base rates on where a car is usually located, it might need to adjust your premium. If the school is in another state, check on the financial responsibility laws in that state to make sure you have the appropriate coverages.
Generally, if a teenager is the principal driver of a particular automobile, the company will base the teen’s rate on that car. Otherwise, the company will assign the teenage driver to the car (usually the most expensive) in your household that produces the highest rate.
— Removing Your Children from Your Policy
You may want to remove your children from your policy when they no longer live with you. You’ll probably have to prove to the insurance company that your child has moved. You can use documents like a driver’s license, lease agreement or utility receipts to show that your child has a separate address.
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