{"id":5206,"date":"2018-06-08T17:01:56","date_gmt":"2018-06-08T17:01:56","guid":{"rendered":"https:\/\/www.mullenandmullen.com\/3-misunderstood-insurance-terms\/"},"modified":"2023-10-03T12:37:46","modified_gmt":"2023-10-03T12:37:46","slug":"3-misunderstood-insurance-terms","status":"publish","type":"post","link":"https:\/\/www.mullenandmullen.com\/personal-injury-lawyer\/articles\/3-misunderstood-insurance-terms\/","title":{"rendered":"The 3 most misunderstood auto insurance terms"},"content":{"rendered":"
Does your auto insurance work like you think it does? Read and understand these commonly confused terms so you\u2019re not hit with any surprises.<\/strong><\/span><\/p>\n The Texas Department of Insurance recently released its full description of auto injury and policy.<\/span><\/p>\n YEAH BABY! Let\u2019s break out the champagne!\u00a0\u2026Says absolutely not one single living person.<\/p>\n But, this is an opportunity to learn exactly what some commonly misunderstood auto insurance terms mean.<\/p>\n Because your layperson\u2019s understanding doesn\u2019t always match what insurance companies, courts, and lawyers think.<\/p>\n That\u2019s not a criticism of you.\u00a0More or less \u2013 it\u2019s how it works.<\/p>\n So take a second to understand what a few insurance terms truly mean:<\/p>\n \u201cComprehensive\u201d Doesn\u2019t Mean All-Inclusive<\/span><\/strong><\/p>\n Accuse the auto insurance industry of being intentionally misleading \u2013 and you\u2019d be right.<\/p>\n Remember, it\u2019s their goal to not pay. And if you can obfuscate (confuse) the meaning of words, you get a lot of power to shift payment away from yourself.<\/p>\n \u201cComprehensive\u201d in auto insurance means protection from most things other than a collision with another car. Some companies and agents call this \u201cother than collision\u201d insurance.<\/p>\n Make sure you check your policy so know your \u201ccomprehensive\u201d insurance covers what you think.<\/p>\n Bodily Injury Coverage Isn\u2019t for Your Body<\/strong><\/span><\/p>\n Want coverage of your medical bills during your accident?\u00a0\u2026Don\u2019t rely on \u201cbodily injury\u201d coverage.<\/p>\n It covers your liability to another driver, passenger, or pedestrian.<\/p>\n Their \u201cbodily injury coverage\u201d covers you.<\/p>\n What if they illegally don\u2019t have car insurance, and have no way of paying for your medical bills following an auto collision?<\/p>\n Your policy likely has an \u201cuninsured motorist\u201d or \u201cunderinsured\u201d motorist option you can collect from for financial help.<\/p>\n Collision Coverage Is an Optional Coverage that Covers Physical Damage to Your Vehicle<\/strong><\/span><\/p>\n Isn\u2019t the reason you have auto insurance in the first place so you can get your car paid for if you have damage to it?\u00a0Kinda. Sort of.<\/p>\n Texas\u2019 minimum requirements only include liability. In other words, only if you have responsibility for damage to someone else\u2019s property, car, or body.<\/p>\n You have to carry $30,000 for each injured person, $60,000 for each accident, and $25,000 for property damage at minimum. This is called 30\/60\/25 coverage.<\/p>\n Now collision comes into play when you hit another object while driving by yourself, like a guardrail, pothole, fence, mailbox, or tree. You can also use collision coverage to repair damage to your vehicle when in an accident.<\/p>\n It\u2019s more expensive. And law doesn\u2019t require it.<\/p>\n Typically, you get it if you own a more expensive vehicle. And most people have $500 or higher deductibles.<\/p>\n Hopefully that clears up any confusion you had around those terms.<\/p>\n Insurance companies do what they can to confuse so they have the advantage.<\/p>\n \u2026But you have Mullen & Mullen Law Firm<\/a> on your side. And we\u2019ll make sure you get nothing but the truth.<\/p>\n Suggested Reading<\/strong><\/span><\/p>\n Texas drivers beware: Motorists don\u2019t carry enough insurance<\/a><\/p>\n What can you do if insurance co. denies your claim?<\/a><\/p>\n What if you’re hurt in Texas and the at-fault driver has no insurance?<\/a><\/p>\n