Car Insurance, often used interchangeably with \'motor insurance\' or \'car insurance\', is an insurance policy that provides coverage against losses incurred due to car accidents. Through car insurance, an insured can easily avail of various benefits provided by the insurance company in respect of losses occurred because of car accidents.

TEXAS CAR INSURANCE POLICIES

Following are the basic types of car insurance policies :

LIABILITY COVERAGE

Liability coverage can be broadly classified into two categories :

Bodily Injury Liability

Property Damage Liability

Bodily Injury Liability

This type of insurance covers those bodily injuries or death for which the insured is responsible. The insured or the opposite party in Texas can raise claims for bodily injury in terms of medical bills, loss of income or pain and suffering. In case a serious accident occurs, the insured would like to have enough insurance in order to cover a judgment against him in a lawsuit, without putting his personal assets at risk. A very important aspect of this kind of insurance policy is that it only provides coverage for injury to people, not their vehicle, and that it does not provide coverage beyond what the terms and conditions of the policy entails. Therefore, it is advisable to have the same level of coverage for all the cars the insured owns in Texas.

This policy provides coverage if the insured car damages someone else's property in Texas. The opposite party's property may include their car, a fence, a house or any other property damaged in an accident. The major distinction in this case is that, in case of bodily injury liability, the coverage provided is for people, whereas, in this case, the coverage provided is for property damaged in a car accident. It would be better for the insured in Texas to purchase enough of this insurance to cover the amount of damage his car might do to another vehicle or object.

PHYSICAL DAMAGE COVERAGE

Physical Damage Cover can be broadly classified into two categories :

Comprehensive Coverage

Collision Coverage

Comprehensive Coverage

This type of insurance policy covers the insured car or any other car, which the insured must have been driving for damages, resulting from incidents other than collision. In other words, this insurance provides coverage for damage to the car if it is stolen ; or damaged by flood, fire, or animals.

Collision Coverage

This type of policy covers damages to the car in a collision with another car in Texas. However, if the insured owns old cars, he should not go for this type of coverage, as coverage is normally limited to the cash value of the car.

Uninsured and Underinsured Motorist Coverage can be broadly classified into four categories :

Underinsured Motorist Property Damage

Uninsured Property Damage

Underinsured Motorist

Uninsured Motorist

Underinsured Motorist Property Damage

This insurance policy provides coverage when property damage is sustained by an insured and the negligent driver possesses insurance.

Uninsured Property Damage

This insurance policy specifically covers the insured ?s auto when he sustains property damage and the negligent driver does not possess insurance.

Underinsured Motorist

This insurance policy covers the insured, his household members and his passengers for injuries, damages or death caused by the negligence of a person who does not have sufficient insurance. In simple words, if the insured meet with an accident with a person whose coverage cannot meet his damages; this policy will meet the difference-up to the limit of liability listed in the terms and conditions of the policy.

Uninsured Motorist

This insurance policy covers the insured, his household members and his passengers for bodily or personal injuries, damages or death caused by an at-fault uninsured or hit-and-run driver. In simple words, if the insured meet with an accident with a person or a driver who is at fault but has no insurance, the Uninsured Motorist policy will cover the insured medical expenses, up to the limit mentioned in the policy.

Other insurance coverage may include the following :

Personal Injury Protection Coverage

Medical Payments

Travel Protection Plan

Accidental Medical Protection Plan

Rental Car Reimbursement

Accidental Death Benefit

Personal Injury Protection Coverage

This type of insurance policy provides coverage for medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him, only within the specified limits. This policy is not in much use in Texas, and is thus available in certain states only.

Medical Payments

This policy provides coverage for medical expenses of the insured. It also provides coverage for injuries sustained by the insured by some other vehicle in Texas. It does not matter who is at fault in the accident.

Travel Protection Plan

This policy compensates for Emergency Repair and Towing costs if the insured has to get his car towed due to either an accident or mechanical breakdown. This policy also insures the cost of a rental car if the insured vehicle is disabled due to an accident.

Accidental Medical Protection Plan

This policy covers the accidental expenses of the insured.

Rental Car Reimbursement

In case of a car accident, the Rental Car Reimbursement policy provides coverage for car rentals or car repairs, if the car is disabled or is being repaired.

Accidental Death Benefit

This policy provides a death benefit if bodily injuries result into the death of the insured or any of his family members.

PRICING STRATEGY FOR THE FUTURE

In almost all the car insurance plans, the premium charged by the insurance companies is based upon certain factors such as car characteristics, selected coverage, car usage, driving history, credit rating, age and gender of the driver. However, in case of governmental liability insurance, there are fixed premium charges applicable in Texas.

In case of mandatory liability insurance, though in some countries, risk factors are taken into consideration, whereas, in other countries, a fixed rate of premium is charged, irrespective of the state of an individual.

HOW TO FILE A CLAIM

In case of the occurrence of an accident in Texas, it is the duty of the insured to inform the insurance agent about it and immediately file a claim. Before filing claims, the insured should ensure that he has attained the following documents in order to ease the processing of claims: