Understanding the Different Types of Auto Insurance Coverage

Purchasing a vehicle is a major decision, and choosing the right auto insurance coverage type is an important part of that process. At Oasis Insurance Agency, Inc., we can help you understand your options and find a policy that suits your needs.

Key Types of Auto Insurance Coverage

Below are the key auto insurance coverages available in Texas:

• Liability coverage is generally required by state law and may help pay for injuries or property damage you cause to others. It does not cover your own injuries or vehicle repairs, but may reduce what you pay if you are at fault.
• Collision insurance may pay to repair or replace your car after a crash, regardless of who is at fault.
• Comprehensive insurance may cover damage from noncollision events such as theft, vandalism, fire or certain storms, including hail.
• Uninsured/underinsured motorist coverage may help with injuries or property damage if you’re involved in an accident caused by an at-fault driver with little or no insurance.
• Personal injury protection (PIP) and medical payments (MedPay) coverage may help pay for your medical costs and those of your passengers after an accident. PIP can also help with additional expenses, such as lost wages.

How to Decide Which Coverages You Need

A few points may help you choose which coverage to include:

• Vehicle value and age: Newer or financed cars may need collision and comprehensive coverage.
• Budget and deductibles: Higher deductibles can lower your premium but raise your out-of-pocket costs after a claim.
• Driving habits and risks: If you drive frequently or face higher local risks, you may consider choosing higher liability limits, uninsured/underinsured motorist coverage and comprehensive coverage.

Our Team Can Help

Contact Oasis Insurance Agency, Inc. today to review your insurance options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.