Auto Insurance

Texas drivers face various risks day in and day out, whether they’re on the road or not. With inclement weather risks and the standard driving risks Texan drivers and car owners face, getting adequate auto insurance is essential. If you need auto insurance, call the team at Lone Star Insurance Agency.

What Is Auto Insurance? 

Auto insurance is a contractual agreement in which you (the insured) pays a premium to the insurance company (the insurer) in exchange for financial protection in the event of a covered loss. There are a variety of different auto insurance coverage options that you can purchase to tailor your level of coverage.

How Auto Insurance Works

After you’ve purchased an auto insurance policy, you’ll continue to pay your premium to ensure coverage continues throughout the policy term. If you experience a covered loss such as an accident or damage to your car at any point during the term, you will then call your insurance agent to file a claim.

The agent or a representative for the agency or insurer will evaluate your claim. If approved, you will issue a payout to cover the cost of the losses up to the policy’s limit, minus any applicable deductibles. Whether the payout is issued directly to you or a third party (e.g., a repair shop) will depend on your policy. If the claim is a liability claim, or in other words, if you cause an accident that results in third-party bodily injury or property damage, your insurance company will pay the third-party claims up to your policy’s limits.

How Do Auto Insurance Deductibles Work?

An auto insurance deductible is the amount of money you must pay out-of-pocket toward repair costs following a covered loss before the insurance company steps in to cover remaining costs up to a policy’s limit. Deductibles typically apply on a claim-by-claim basis, so if you have multiple accidents during a policy term, you generally have to pay the deductible each time. Not every type of auto coverage has a deductible and you may be able to choose how high your deductible is. Talk to a Lone Star Insurance Agency team member to learn more.

How Much Auto Insurance Do I Need?

The state of Texas requires all drivers to carry minimum levels of auto liability insurance, which means you’ll need to make sure that you purchase at least enough liability insurance to satisfy these requirements. Beyond these state requirements, you may be required by a lender to carry certain levels of collision and/or comprehensive coverage if you’ve financed your vehicle.

Knowing how much auto insurance is enough or how much auto insurance you should carry can be difficult. Additionally, knowing what types of coverage to choose can be a daunting task, as there are a variety of coverages to consider, including:

·       Liability coverage

·       Collision coverage

·       Comprehensive coverage

·       Uninsured/underinsured motorist coverage

·       Medical payments coverage

·       Personal injury protection (PIP) coverage

·       GAP coverage

·       Rental reimbursement coverage

·       Roadside assistance coverage

The team at Lone Star Insurance Agency can help you learn more about each of these coverages and build a policy that provides the coverage that you need.

How Much Auto Insurance Costs

The cost of your auto insurance policy will depend on a multitude of factors, including, but not limited to, the value and type of car you’re insuring, your age, sex, marital status and credit score, coverages you’ve selected (including the deductible chosen), and claims history. For a free auto policy quote today, click here or give us a call at (817) 426-2886.