What is home & auto insurance?

Homeowners insurance provides financial protection for your home and property in the event of unforeseen events such as theft, fire, or natural disasters. This insurance typically covers the cost of repairing or replacing your home and personal property and liability coverage if someone is injured on your property. If an unexpected event occurs, you can file a claim with your insurance company to potentially receive payment for covered losses. It’s important to note that you may need to pay a deductible for certain claims, and coverage and deductibles can vary depending on your insurance provider and the types of coverage you choose.

Auto insurance is a contractual agreement between you and an insurance company that provides financial protection against losses caused by accidents or theft related to your vehicle. To avail of this protection, you must pay the insurance company a premium. If an unfortunate event occurs, your insurance company agrees to compensate you for the losses as per the terms outlined in your policy. This way, auto insurance can help you avoid significant financial burdens resulting from damages to your car, injuries to yourself or others, or theft of your vehicle.

What are the types of auto Insurance coverages?

So, when you talk about auto insurance coverage, there are eight basic types to choose from:

1. Liability Coverage

This coverage pays for the damage caused to another person’s car or property. It also includes drivers’ and passengers’ medical charges and other expenses. According to the law in Texas, you need to have at least $30,000 coverage for damage per person, up to $60,000 for every encounter, and $25,000 compensation for property damage.

1. Collision Coverage

Collision coverage is required to repair or replace your vehicle after an accident.

1. Comprehensive Coverage

Comprehensive coverage compensates you when your vehicle is damaged by other events besides a car accident. For example, this type of coverage could cover hail damage from a storm, theft, or a break-in, among other things.

1. Medical Payment Coverage

Medical payment covers you or your passengers’ medical expenses in case you are injured in a car accident, whether you caused it or not.

1. Personal Injury Protection (PIP)

Like the medical payment coverage, personal injury protection covers for your and other passengers’ medical expenses. Furthermore, it provides compensation for lost wages or other non-medical expenses.

1. Uninsured Motorist Coverage

This coverage will protect you in case you have an accident with a driver without insurance or who does not carry enough liability to compensate for your medical expenses and vehicle repairs. This type of coverage will also be helpful in a hit-and-run situation.

1. Towing and Labor Coverage

This is an optional coverage you can add to your policy. It will cover for the costs of your car being towed if it cannot be driven. It also pays for the expenses required to replace a punctured tire, deliver gas/oil, or kick-start your car battery.

1. Rental Reimbursement Coverage

This coverage compensates for the price of renting a car if yours is under repair after an accident. Some companies will also reimburse expenses for taxi services.