You may have heard the common expression in English: “You get what you pay for” or the Spanish equivalent: “Lo barato cuesta caro.” Well, it’s true… cheaper is not always better, and people often discover too late after an accident that they are not adequately protected.
In the state of Texas, you are only required by law to have liability coverage on your auto policy.
All other coverages are optional. Uninsured Motorist and Personal Injury Protection are the 2 most common optional coverages that many people reject in order to lower their insurance rates. Although these auto coverages are not required by law, they are important and should not be rejected without understanding the consequences.
Uninsured Motorist Coverage
In Texas, it is estimated that 20-25% of the drivers do not have auto insurance. If you are hit by an uninsured motorist or underinsured motorist, and you do not have uninsured motorist coverage – you and your passengers will have no coverage for injuries. Your car will not be repaired if you have liability only on your auto policy.
Personal Injury Protection
Personal Injury Protection (PIP) gives you and your passengers coverage for medical expenses and lost earnings after an auto accident—no matter who is at fault. When you reject personal injury protection, you and your passengers may have no medical coverage after an accident.
Since these 2 coverages are so important, Texas state law requires that you sign a rejection form if you do not want these coverages on your auto policy. Do not sign a rejection form or any other legal insurance document without understanding what you are signing.
When you get a quote from an insurance company that seems “too good to be true,” you need to look closely at the coverages on the quote and make sure you and your family are properly protected.
Call Cheri Roman–Roman Agency, Inc. at 512-282-9999 or 512-280-0000 if you have any questions regarding your auto or home insurance Austin, Texas.