It is easy to make mistakes while setting up your auto insurance policy. Insurance agents may try to steer you away from plans that provide the best coverage to lower your premium and win your business from competitors. Contracts also contain language and terms that you may find confusing. As a result, you may be unaware of exactly how you will be covered in the event you need to use your insurance after an accident. The following five examples are mistakes people make on their policies.
- Not including PIP: Although personal injury protection (PIP) is mandatory in Texas, you can sign a waiver to opt out. An insurance agent may entice you with lower monthly payments at the expense of signing away PIP coverage. PIP covers lost income, funeral, and medical expenses after an accident.
- Neglecting UM/UIM coverage: You should always make sure you have UM/UIM coverage. It covers physical or property damage in the event you are hit by an uninsured or underinsured motorist. This coverage can pay for medical bills, lost wages, and disfigurement, partial or permanent disability. If you lack UM/UIM coverage, you can only receive the maximum amount covered by the at-fault driver’s policy (if they have one).
- Not knowing who is covered: Make sure you know who is covered on your policy beforehand. If you allow other family members to use your vehicle, make sure they are listed as permissive drivers on your policy. This way if they get into an auto accident, they are covered.
- Buying the minimum required amount: Your auto insurance policy is the one thing you do not want to be frugal with, as it can come back to haunt you later. Texas law requires a $30,000 minimum liability limit. As personal injury attorneys, we can tell you from experience that this is nowhere near enough to pay for the medical bills and lost income associated with a catastrophic injury.
- Not researching your policy: Although you can research your policy beforehand, it may help to have an expert walk you through the details. Insurance contracts use confusing language on purpose. Know what you are getting into before signing a contract for your policy.
Mike Love & Associates, LLC Can Review Your Auto Insurance Policy
Insurance agents do not have your best interests in mind. They are in the business of making their company money, not ensuring you have what you need after an accident. Mike Love & Associates, LLC will review your policy at no cost. We can help you figure out if you have adequate coverage. It is better to know how you are covered before you need to use insurance.