How to Read an Auto Insurance Policy

Insurance policies are a necessary evil, but why do they have to be so confusing? If you’ve ever tried reading page after page of your auto policy and suddenly find yourself lost in a sea of mystifying insurance jargon then stop right now. There is no use giving yourself a headache when professional agents such as the professionals at Tri-Star Insurance in Plano, Frisco and North Dallas can walk you through it step-by-step. In the meantime, why not brush up on the basics of a standard insurance policy?

Every auto insurance policy is made up of several sections that define the many coverage options available and how they can be used.

Liability – Up to a specified limit, this clause covers property damage or bodily injury incurred from an automobile accident for which you are deemed legally responsible.

Personal Injury Protection – Also called “no-fault insurance”, personal injury protection covers medical bills and sometimes lost wages due to an accident that leaves you unable to work . There is a limit to the amount you receive as specified in your policy. 

Medical Payments – No matter the person at fault, medical payment coverage pays for reasonable medical bills as the result of a car accident. There are certain limitations to this form of coverage including a specified amount available to use and a time limit of around three years following the accident to continue receiving payments.

Uninsured/ Underinsured Motorist – With the countless number of drivers on the road cruising around with no auto insurance driving can be pretty risky. Not available in all states, uninsured motorist coverage provides reimbursement for damages caused by a person devoid of insurance. Essentially, you would receive the amount payable if the person did have insurance.

Collision – If your vehicle has a run in with a pole or another car then you can use collision coverage to pay for repairs. There is usually a somewhat hefty deductible in the range of $250 - $500, but with the massive cost of parts and labor then it may be worth the slight blow to your pocketbook. You can always specify the amount of your deductible when working with your agent such as the experts at Tri-Star Insurance.

Comprehensive – Not all accidents involve other vehicles so in the event of fire, theft, vandalism, hail, or flood damage comprehensive coverage really does come in handy. Furthermore, if your car is stolen, comprehensive covers the cost of a rental.

Roadside Assistance – Dead batteries, flat tires, mechanical failure and lockout are just some of the nightmares that can occur in the world of driving. If you’ve ever been stuck in the middle of nowhere with a car that refuses to work then this type of coverage can be a lifesaver.

When you need insurance for your vehicle in the North Dallas, Plano and Frisco area don’t forget that Tri-Star Insurance is ready to help you find what you need. Call 214-387-0600 or toll-free at 1-800-880-4600 today to find out more about the language of auto insurance policies.