Auto insurance pays for damages, injuries, and
other losses that are detailed in your policy. Depending on the type of
coverage, auto insurance can either pay for your damages or another driver’s
damages, or a passengers damages.
The most common types of auto insurance are:
LIABILITY pays for damage caused by you to another person or
another person's vehicle or other property as a result of an automobile
accident. Types of liability coverage include:
Bodily
Injury (BI) If you injure someone in an auto accident for which
you are legally to blame, this coverage will pay claims for injury or
death against you and the cost of legal defense.
Please keep in mind that you are responsible for any amount of a
covered loss that exceeds the amount of insurance coverage you purchase;
therefore we highly recommend you consider securing higher limits of
bodily insured auto liability coverage to protect your personal assets in
the event of a large liability settlement or a count renders a judgment
for a dollar amount that exceeds your policy limits. We would highly
recommend you request a quote for a Personal Umbrella Liability
Policy as recent court judgments to claimants for wrongful death , pain
& suffering due to injuries , medical expenses , and/or loss of income due
to a negligence of another party have been substantial.
Property damage (PD) pays for damage that you cause to someone
else's vehicle or property for which you are legally liable. This does not
cover your car or property.
Please keep in mind that you are responsible for any amount of a
covered loss that exceeds the amount of insurance coverage you purchase;
therefore we highly recommend you consider securing higher limits of
property coverage to protect your personal assets in the event of a large
liability settlement or a court renders a judgment for a dollar amount
that exceeds your auto property damage policy limits due damages you cause
to someone else's property. Accidents involving
multiple automobiles, high valued automobiles, or commerical vehicles may
result in substantial losses that exceed coverage limits available under a
standard Texas auto policy so we would highly recommend you request a
quote for a personal Umbrella Liability Coverage.
Medical payments pays for medical, hospital or funeral expenses
for you and others injured or killed while riding in your car, regardless
of fault. It also covers you and family members if struck by a car as a
pedestrian or if riding in another car.
PHYSICAL DAMAGE pays for a loss resulting from damage to your
vehicle or a vehicle operated by you. Physical damage also provides coverage
if your vehicle is stolen. Types of physical damage coverage include:
Collision pays for damage to your car from an accident
regardless of fault. It usually includes a deductible and the insurance
company pays the rest. Selecting a larger deductible can lower your
collision premium.
Other
Than Collision (Comprehensive) pays for damage to your car caused
by most anything other than a collision. Glass breakage, theft, fire,
explosion, impact with an animal, vandalism and flood are some of these
hazards. This coverage is also available with deductibles to lower your
premium.
OTHER COVERAGE Other types of auto coverage include:
Uninsured Motorists (UM) Unfortunately, not everyone purchases
auto insurance. If you or your passengers are injured by someone who does
not carry auto insurance, UM coverage will pay for injuries up to your
policy limits. This includes medical expenses, loss of wages, and related
expenses. UM coverage also applies if you are a victim of a hit-and-run
driver.
Underinsured Motorists (UIM) Just as some drivers don't carry any
auto insurance, other's don't carry enough to pay for damages from their
accidents. UIM coverage pays for death and injury expenses to you or
occupants of your car when the other person's insurance is inadequate.
Personal Injury Protection (PIP)) Coverage pays for medical
expenses and 80% of lost income, regardless of who is at fault in the
accident. It also pays for assistance with personal services you are
unable to perform because of an auto accident. You, your family members,
and your injured passengers are covered under PIP. Insurance; insurance companies
must offer to sell you PIP coverage (and Uninsured Motorist Coverage)
along with your liability coverage. If you decide not to purchase PIP, you
must reject it in writing. PIP coverage is available at limits of $2500
and up.
Rental Reimbursement pays for the cost to rent an
automobile up to the daily and total maximum amount of coverage you
purchase ;up to your available policy limits; while your vehicle
is being repaired or replaced should a total loss occur from damage or
theft.
Towing pays for the cost have your vehicle towed to a
repair shop ; up to your per select policy limit; by a wrecker service
should you automobile be damaged under your policy for a covered loss.
2007 Automobile Underwriting Guidelines
What is an underwriting guideline?
An “underwriting guideline" is a rule, standard, guideline,
or practice, whether written, oral, or electronic, that is used by an insurance
company (or its agent) to decide whether to accept or reject an application for
a personal automobile insurance policy or to determine what rate will apply to
an applicant once the application is accepted.
To view the 2007 Automobile Insurance Underwriting Guidelines in PDF format
please
CLICK HERE
In order to the PDF you will need the free version of
Adobe Acrobat.
Texas Automobile Insurance Underwriting Guideline Comparison For
1994-1996-1999
Results In the Standard Rate Regulated Market
Percentage
Of Carriers Who Applied These Underwriting Guidelines In The Standard Auto Insurance Market In The Following Years :
1994
1996
1999
Canceled
by another company. Applicants are asked whether or not their
insurance was canceled by another insurer. During the time period covered by
the guidelines reviewed for 1996, a new rule made it illegal to base
underwriting decisions on this information although it was still legal to
ask an applicant. It is unknown how this information was used. The rule
prohibiting use of this guideline has been overturned by the Texas Supreme
Ct.
71%
65%
60%
No prior
insurance. Insurer will not offer coverage to an applicant who is
not currently insured or has not maintained continuous coverage for a
specified period. Rules prohibit use of this guideline if applicant was
uninsured for 30 days or less during the last year.
71%
46%
83%
Age.
Applicants are denied based on their age, even though the rates set by the
state allow for rating classification by age. Generally, these guidelines
refuse coverage to young drivers, with some exceptions for those who are
covered on their parents policy, and to older drivers.
91%
93%
84%
Occupation. Applicants are denied because of their occupation. Some
guidelines allow certain occupations or professions to have more blemishes
on their driving/claim record.
56%
65%
56%
Residential stability. Applicants are denied if they have not lived
at the same address for a specified period of time, usually 2-3 years, or is
a homeowner.
67%
85%
77%
Employment stability. Applicants are denied if they have not worked
for the same employer for a specified period of time, usually 2-3 years.
51%
47%
64%
Not-at-fault accidents and claims. Applicants are denied because
they have made a claim for, or been involved in, an accident or accidents in
which the applicant was not at fault.
52%
21%
61%
Foreign
Nationals. Applicants are denied because they do not meet the
insurers residency requirements and/or requirements that the applicant have
driving experience in the United States for a required period of time,
usually several years.
58%
44%
64%
Marital
Status. Insurer considers the applicants marital status. Many of the
guidelines ask for specific information such as widowed, divorced,
separated, although the rating manual only distinguishes between married or
not married for certain young driver categories.
48%
45%
61%
Other
coverage. Applicants are denied the minimum liability coverage
required by law unless they agree to buy other coverage. While legal for the
1994 report, this guideline was illegal during the period covered by the
1996 guidelines. The department of insurance rules prohibiting its use is
still in effect.
38%
22%
54%
Previous
insurer nonstandard. Insurer refuses to sell to those who have been
insured in the nonstandard market (county mutual or assigned risk plan).
While legal for the 1994 report, this guideline was illegal during the
period covered by the 1996 guidelines. The rule prohibiting use of this
guideline has been overturned by the Texas Supreme Court.
15%
44%
64%
Credit
history. Applicants are denied coverage because of their credit
history. Insurers often use "risk scores" which combine credit information
with demographic data.
25%
58%
66%
Driving
experience. Applicants are denied if they do not have at least 3
years of driving experience. The number of years of experience required
varies by insurer up to a maximum of 14 years.
43%
25%
71%
We will normally provide
Non-Standard Auto Risk Coverage quotes within 24 hours of a quote request.
