If you’re struggling to understand what your car insurance policy covers – you are not alone. Understanding the ins and outs of insurance coverage can be tricky. Regardless of what state you’re in, you’ll probably find a lot of big words in your policy regarding legalities. Texas auto insurance is no different. Every policyholder in the lone star state needs to understand exactly what insurers look at when determining your premium.
With this in mind, we wanted to clear the air about a few insurance myths that often confuse Texans. So here are five myths about Texas auto insurance:
Color is important
Many individuals believe the color is an important aspect of a car when the premium is being determined. This is generally not true. Even red cars do not increase premium prices at all. Insurers care more about the make, model, year, engine size, body style, and more. The location the car will be driven and stored is also taken into account, along with the age and driving history of individuals using the car. If the primary driver has incurred moving violations (like speeding tickets or reckless driving), then the cost of premiums will always increase.
Rentals are always covered
Not true. Rental car reimbursement is not guaranteed to be in your Texas auto insurance policy. Rental reimbursement is a very affordable addition. Most insurers charge around $1-2 per month for this addition, but a majority of plans will have a limit on how many days you can rent in a year and the rental cost per day that can be covered.
Credit scores don’t matter at all
When talking about your insurance policy in Texas – credit scores do matter. Insurers take numerous factors into consideration when deciding the premium you’ll pay. As your credit score is an indicator of your financial standing – insurance companies will look at your numbers when purchasing, renewing, or changing your policy.
Personal Property inside my car is always covered
If you get rear-ended in a crash, and your new set of expensive golf clubs is destroyed – your car insurance policy in Texas will not cover you. If someone breaks into your car and steals expensive items like a laptop or jewelry, then you’ll want to file a claim with your homeowner’s or renters insurance policy. However, your auto insurance will not cover these items.
Always covered against vandalism and storm damage
There are different types of Texas auto insurance policies. Coverage options vary. Comprehensive and collision coverage are options when you buy a policy. Thus, you’re not “always” covered if a tree falls on your car or someone keys the side of your ride. If you are leasing a car or financing, then you should have comprehensive coverage as well as collision coverage, as it’s required in these cases. If you own your car, having at least “liability only” (collision) coverage is required. If you want comprehensive coverage, you will have to request this additional coverage option.
Learn more about Texas auto insurance
If the ins and outs of auto insurance in the great state of Texas seem overwhelming to you – then we’d love to hear from you. Here at Baja Auto Insurance, we specialize in helping Texans find the absolute best car insurance coverage for their needs. From liability to collision to comprehensive – we’ve got you covered. Call us or visit one of our stores today!
Houston locations: 800-339-4913
Dallas & other locations: 800-401-6870