FAQ's

1. What family members are covered on my policy ?
   Your spouse, blood relatives, in-laws, adopted children, foster children and wards living in your home, even if not named on the policy. “Spouse” includes a spouse living somewhere else during a marital separation. Family members attending school away from home are also covered.
2. What exactly is the Declarations Page ?
   This is the front page of your policy and it contains the name of your insurance company, policy number, your coverage and deductibles, the vehicles and named drivers on your policy including any excluded drivers.
3. What if an Excluded Driver was driving my vehicle at the time of an accident ?
   There would be no coverage afforded for you or the other party.
4. Can I get into trouble for not having liability insurance ?
   The Texas law has severe penalties for violating financial responsibility laws. The first conviction is a fine of $175 to $300, subsequent convictions can be $350 to $1,000 with a drivers license suspension and vehicle impoundment.
5. Does my policy cover stereo equipment, aftermarket items, custom accessories, camper shells/topper and personal property, such as sunglasses, cassettes, phones etc… ?
   Your policy won’t pay these items unless you have an endorsement and are paying premiums for them. Only original equipment is covered. Stereo equipment is only covered up to $1500 and must be permanently installed.
6. Do I have to buy collision or comprehensive coverage ?
   Texas law does not mandate this, however lien holders usually require this if there is a lien or note against the vehicle.
7. Do I need to buy rental car insurance when I rent a car ?
   No. Your liability coverage pays for any damage you are responsible for. A rental car company will offer you a collision damage waiver, not insurance, which is an agreement for them to give up their rights to recover for property damages caused by you. Your liability coverage will only pay to your limits .
8. Is there coverage for a new vehicle that I have purchased but has not been added to my policy ?
   Yes. An additional car is covered with the broadest coverage provided by your policy. This means if you have a car with liability coverage and a car with collision, comprehensive and liability coverage, the replacement car will have the broadest coverage. A replacement car has the same coverage as the car it replaced. If you traded in a car with only liability coverage, the replacement car will only have liability coverage. Please note: you only have 30 days to add the new or replacement car to your policy or there may not be any coverage if involved in an accident or loss.
9. What is not covered under my auto policy ?
   Wear and tear, freezing, mechanical breakdown, road damage to tires, tapes, CD’s and other personal property. These may be covered under your homeowners insurance. Any customization you do to your vehicle after it is purchased, unless you notify your insurance company and proper coverage and endorsements are added to your policy. All sound reproducing equipment like stereos, speakers, CD players and TVs must be permanently installed. A cell phone may be covered if it is permanently installed and covered under a special endorsement. There is a $1500 limit on the coverage of sound reproducing equipment.
10. Does my policy cover me in Mexico ?
    Mexico does not require automobile insurance. However, be advised that in Mexico you can be held criminally and financially responsible for accidents that you cause. If there were injuries involved, they can detain you until it is determined who is at fault. You will have to show that you either have insurance recognized by Mexico or the financial ability to pay any judgments against you. There is an endorsement - provision that covers you 25 miles into Mexico, but check with you Agent for policy coverage in Mexico.
11. Is my car and the driver covered if they borrow it?
    Yes, provided that you gave them permission.
12. Does my auto insurance cover me if I borrow someone else's car?
    The insurance coverage on the car you borrow would be the primary coverage and would be used first. Your insurance coverage would be considered excess.
    

1. Will my rates go up or can an insurance company drop me because I was in an accident ?
   It is likely and would make sense for your insurance company to raise your rates because of certain accidents, but not if there was no negligence on your part and you were not at fault. Your policy is evaluated when it is time to renew and there are many considerations that go into this question. Your accident history and traffic violations are definitely considered as risks, but this doesn't mean your rates will increase or that you will be dropped. Per the Texas Dept. of Insurance, a company cannot refuse to renew your policy solely because of one not-at-fault accident in a 12 month period. If the accident affected your Texas Dept. of Public Safety (DPS) driving record, your company may consider that in determining your new rates, whether you made a claim or not. You should talk to your Agent or insurance company’s underwriting department about how a claim might affect your rates or renewal.
2. How does my driving record affect my premiums ?
   Per the Texas Dept. of Insurance, a good driving record can save you money as you may receive discounts from some companies when you renew your policy. Accidents or major driving offenses can add surcharges to your premium. Surcharges are mandatory and stay on your premium for three years.

   One accident (At fault) in 36 months can add a 15% surcharge for most drivers.

   
   Two accidents (At fault) in 36 months can add a 35% surcharge for most drivers.

   
   Three accidents (At fault) in 36 months can add a 60% surcharge for most drivers.

   
   Surcharge penalties are also added for property damage over $1,000

   
   Driving under the influence and criminally negligent driving can add a 60% surcharge for most drivers.

   
   No license, or a suspended license can add a 35% surcharge for most drivers.

3. What do insurance company’s look at when determining my premiums ?
   Per the Texas Dept. of Insurance, your age and, for young drivers, your marital status. Male drivers under 25 and unmarried women under 21 have the highest rates. Drivers over 50 may get discounts. In addition, comprehensive and collision rates are higher for cars that damage easily or cost more to repair than others. Cars that are driven to work or used for business also hold higher rates. There are some discounts required by the state, while others are optional with companies. A county mutual, however is not required to give any discounts.

Defensive driving and driver education courses, airbags and other passive restraints, anti-theft devices and multiple vehicles are all subject to rate discounts. Check with your insurance and Agent.

4. Can an insurance company refuse to renew my policy because of claims that were not my fault ?
   Per the Texas Dept. of Insurance, Texas rules forbid non-renewal because of weather related claims such as hail, flooding, tornadoes, wind damage and hurricanes. In addition, collision with animals, damage from gravel, falling objects, towing and labor claims and other claims or accidents that cannot reasonably be blamed on you, unless you have more than one of these claims in a 12 month period. Your deductible can be raised for 3 or more such claims in a 36 month period. The company can refuse to renew your towing and labor coverage with 4 claims in a 36 month period.
5. Are there rights against unfair non-renewal ?
   Your policy must be in affect for 12 months before the company can refuse to renew it. This means a six month policy must be renewed to give you a full 12 months of coverage. The company must give you 30 days notice prior to not renewing your policy. An insurer cannot refuse to renew your policy because a family member reaches driving age. Insurers also may not discriminate because of race, color, religion, sex, family status, national origin, or disability
6. Does an insurer have to disclose the reasons for a cancellation or refusal to non-renewal ?
   Yes. An insurance company must put in writing its reasons for for declining, canceling, or not renewing your policy. This must include the exact incident, circumstance, or risk factor that violated the company’s underwriting guidelines. In addition, the insurer’s sources of information regarding the incident, circumstances, or risk factor.
7. What is the difference between cancellation and non-renewal ?
   A cancellation is the termination of your policy before it runs out. Non-renewal is the refusal to renew your policy after it has expired.
8. What is the difference between a non-standard insurance company and a standard insurance company ?
   A non-standard company sells policies at high rates to drivers with with poor driving records or other related issues. In Texas, a non-standard company is most likely a county mutual. A standard company sells policies to drivers who are less of a risk and who have good driving records. Please note: A county mutual sets their own rates, without limitation, and generally charge more than other companies. You are considered a high risk driver if you have an active accident history, traffic tickets and/or a criminally negligent motor vehicle report. Insurer’s will check your motor vehicle report, credit report and financial history before writing or renewing your policy.

1. What repair shop do I have to use ?
   This is 100% your choice and the insurance company cant determine this for you. Some insurance companies will offer you their Direct Repair shops or Preferred shops. These shops guarantee the repairs and workmanship and if you don’t have a shop they are good to use. They offer state of the art facilities and the claim is expedited as they work directly through this shop and an Appraiser and/or estimate is not required.
2. When can I take my car to the repair shop ?
   You should take your car to the shop when you are ready for the repairs to be started. You do not have to wait for the insurance company to do this. Once the insurance company has been put on notice of your claim, it will be their responsibility to get an Appraiser, if needed, to the shop to prepare an estimate of damages. However, the shop will not begin repairs without an approved estimate of repairs as this is what the repair shop will work from. It is your responsibility to get your vehicle to the repair shop. Please note: The Texas Auto Policy does state that the insurance company gets the opportunity to inspect the damages prior to any repairs being done.
3. What if there is additional damages that the Appraiser and/or insurance company did not allow for ?
   This is very common and expected. It is difficult to determine all the repairs required until the vehicle is tore down. This is referred to as a supplement and the Appraiser will re-inspect the vehicle and discuss what additional repairs are required and submit the supplement to the shop and the insurance company.
4. What parts will be used on my vehicle ?
   The insurance company owes to put your vehicle back to pre-accident condition. This means if after market or LKQ parts are available they will use these parts. The exception would be if your vehicle was of current year and/or has less than 15,000 miles on it or after market or LKQ parts were not available. If OEM parts were used for repair the insurance company would be putting your vehicle in a better position than before the accident.

1. How long will the insurance company pay for my rental car?
   If you are the insured party filing for rental reimbursement coverage, your policy only allows $20 daily for 30 days not to exceed $600. As a claimant filing a property damage claim, the amount the insurance company will allow for is based on several factors. If your vehicle is safely drivable the insurance company will not pay for rental until your vehicle is at the shop being repaired and all parts ordered. The insurance company is also not responsible for your vehicle sitting at the repair shop not being worked on. The guidelines below will assist you in understanding how much the insurance company owes for and will will allow on rental.
   The insurance company uses a general formula of taking the amount of total labor hours on the estimate of repair and dividing it by at least 5 hours a day that the repair shop should be working on your vehicle. This means 60 hours of labor divided by 5 hours a day (60 hours / 5 days) would equal 12 days of rental. The insurance company will add 2 days for each 5 days to allow for weekends as repair shops generally do not work on weekends. Any supplements which would increase the amount or repair hours would also be calculated. This would be considered reasonable rental. The amount of time it will take the repair shop to actually repair your vehicle is generally based on 7 days per every $1000 of repair. This guideline applies if rental is being applied as rental reimbursement and your limits are not automatically paid. Remember, there is no set formula for how much rental will be paid and any disputes can generally be worked out.
2. What kind of rental car can I get?
   If you are the insured party, you can choose anything you wish. This is because your rental reimbursement coverage only allows for $20 daily up to 30 days not to exceed $600. If you choose a rental car that exceeds this limit, you will have to pay the difference. If you are the claimant party, you are entitled to a comparable vehicle to the one that was in the accident. You can’t obtain a Cadillac or a Lincoln Town car if you were driving a Mustang unless you are willing to pay the difference. Some insurance companies will only pay for what is considered as reasonable transportation while your vehicle is being repaired. This means anywhere from $20 to $25 daily (amount may vary) is all they will allow for.
3. What is included with the rental car?
   The insurance will only pay for the rental rates plus any taxes. The rental party will pay for for all other expenses such as the damage waiver and additional insurance. You do not need additional insurance as your own policy will act as the primary coverage against any type of loss while you are driving a temporary substitute vehicle (rental).
4. Does the insurance company owe the claimant loss of use (rental) if they actually don’t rent a car?
   The answer to this is yes. Whether they pay it or not is questionable. They are actually indemnifying you for the loss of use of your damaged property. Since the normal process would require proof of loss and receipts to support the reimbursement of this expense, you would need to make a demand for reasonable loss of use since you actually did not rent a vehicle. Remember, only the reasonable amount of time it would take to repair your vehicle and what would be considered a comparable vehicle will be considered.
5. If my car is deemed a total loss, will I still get a rental car?
   Once your vehicle is determined to be a total loss and an offer has been extended, they would no longer owe for a rental car. In most cases, the insurance company will extend the rental a couple of days after you have been made an offer. The reason for this is because you now have to acquire a replacement vehicle and they do not owe you transportation until you find an alternate vehicle. If this is for rental reimbursement on your policy your insurance company may allow the full use of the limit or until you have obtained a replacement vehicle. It is a courtesy to extend the rental and they will usually do this but it will depend on the insurance company.

The insurance company will try and expedite the settlement of your total loss. however, in most cases they are not taking the responsibility that you need the total loss settlement before you can purchase a replacement vehicle. They can suspend the rental even if you have not been paid for your loss.
6. Do I get a rental car if my car is stolen?
   Yes. You are entitled to a rental car on a theft claim and would follow the same guidelines as if you had rental car coverage on your policy. There is a 48 hour waiting period to determine if your vehicle will be recovered or not. (See Coverage-Rental Reimbursement-Rental Cars)

1. What if the accident was not my fault?
   If it has been determined that the accident was not your fault, the other party’s insurance company is responsible to pay the damages for your loss. You can file a collision claim on your policy and your insurance company will subrogate the claim and try to collect back what was paid on your claim. You will still be responsible to pay your deductible. Once your insurance company collects the subrogation demand for what was paid out, you will be entitled to get your deductible back from your insurance company. You can also choose to file a property damage on the other party’s insurance. (See Subrogation - Property Damage Claims & Determining Liability)
2. What if my passengers and i were injured?
   If you were injured and at fault for the accident, you must have PIP or Medical payments coverage to cover any medical expenses you have. Your passengers would be covered under the liability – bodily injury section of your policy. If the accident was not your fault, you and your passengers could file an injury claim on the other party’s insurance. In addition, if you have PIP or Medical payments coverage, you and your passengers are entitled to those benefits, regardless of who was at fault. (See Coverage – PIP – Medical Payments – Liability & Bodily Injury Claims)
3. What if the other party did not have any insurance?
   You could file an uninsured motorist claim under your policy for the property damage and injuries. You and your passengers are covered under this coverage and if not otherwise stated, there is a $250 deductible. In addition, you are entitled to a rental car. Remember, this coverage works just like the liability section of your policy. (See Coverage - Uninsured Motorist & Uninsured Motorist Claims)
4. What if I didn't have collision or uninsured motorist coverage and was at fault for the accident?
   There would be no coverage for your vehicle.
5. What if my car was deemed a total loss?
   The repair cost to your vehicle is greater than the value of your vehicle. (See Total Losses & ACV)
6. What parts, custom equipment and accessories are considered covered?
   Without a special endorsement, only what would be considered standard equipment is covered. (See Coverage & Body Shops & Repair)

1. What if I was injured as a passenger in another car as a result of an uninsured motorist?
   If the other car has uninsured motorist bodily injury coverage (UMBI) you would be covered under their policy. If there was no uninsured motorist coverage, you could file a claim on your uninsured motorist coverage.
2. What if I filed a claim for injuries and property damage against someone else’s insurance and their limits were not sufficient to cover my losses?
   You could file a claim on your under-insured motorist (UM/UIM) coverage for the difference. In addition, you could file a claim on your PIP coverage for the difference and anything after that could be filed on your (UM/UIM) coverage.
3. Can I file an uninsured motorist bodily injury (UMBI) claim and a PIP claim and receive both benefits?
   Yes. Please note that when you settle your injury claim anything that was paid out on your PIP coverage can be deducted out of your injury settlement. There is no double dipping on a (UMBI) claim.
4. Will my insurance company pay for my medical treatment as I go or is this my responsibility?
   In most cases, you are responsible for the payment of treatment to the provider. Some medical institutions will execute a Medical Lien on your treatment. This means that when you settle your injury claim the insurance company is bound by the Medical Lien to pay the provider first for what is owed and then the difference to you. This will usually allow you to receive treatment without paying anything until you settle your claim.
5. When will my insurance company settle my injury claim?
   Once you have finished your medical treatment and all the support documentation you want to be considered in the evaluation of your claim (medical bills, medical reports, wage/salary verification etc..) have been received by your Claims Adjuster, an evaluation of the claim will be completed and a settlement offer made.

1. What if I don't agree with the settlement offer made by the insurance company?
   The insurance company’s offer is supported and documented on identified and located comparable vehicles in your market place with the same to similar options, mileage, special features and any other related characteristics. If there was some discrepancies with the condition or the comparable vehicles used to evaluate the ACV of your vehicle, then you should present your argument with documented findings to justify what you feel the value of your vehicle should be. Please note: The insurance company can and probably will deduct from your settlement any old damages (hail, unrelated dents, worn tires, faded paint and torn interior etc..). If you still disagree, the Texas Auto Policy has an option for you to employ the Appraisal clause. This is where each party obtains their own Appraiser and selects an umpire, at their own expense to appraise and determine the value of your vehicle. The Appraisers will state their values and submit their differences to an umpire. A decision agreed to by any two will be binding. The appraisal option is only available in disputes between you an your insurance company. It is not available when pursuing a claim against the other at fault party’s insurance company.
2. What if I owe my lien holder more than what I will be paid on my settlement?
   Again, the insurance company only owes what the ACV (actual cash value) is for your vehicle. If you are upside down on you loan (owe more than the vehicle is worth), that is between you and your lien holder. If you owe less, you will receive the difference. You should look into additional insurance coverage’s like GAP insurance which protects you from this kind of exposure. There are some cases where your lien holder will do a substitution of collateral. This is when the amount owed is rolled over to a new loan. (See Lien Holders)
3. Do I have the option to keep my salvaged vehicle?
   If you own the vehicle with a clear title or proof of ownership you can discuss retaining the salvage with the insurance company. Most insurance companies have contracts with salvage yards for a certain percentage on salvage. Your settlement would be less their salvage value. You would have to sign an Owner Retention of Salvage form.
4. How long will my rental car be paid after I have been notified that my car is a total loss?
   Once you have been made a settlement offer they will usually suspend the rental car. Sometimes a couple of days would be granted after the offer is made. This suspension of rental also applies even if you disagree or don’t accept the offer. If you are in a rental car under your rental reimbursement coverage, you may have some flexibility with an extension up to the limit, if required but it is on a limited basis and case by case.
   

1. Can the other drivers insurance company deny my claim because the driver denies fault and/or they are unable to determine liability?
   The statements from all parties involved-including witnesses, the police report, a scene investigation and the physical damages of the vehicle are really the only factors when considering who is liable for an accident. If it cant be determined who was responsible for the accident, they can and will deny your claim. You would probably expect your insurance company to do the same. If their insured states the facts as one thing, and you state another, the police didn't respond and there are no witnesses, liability will not be able to be determined and a denial of your claim will most likely happen. In this case you would need to file under your collision coverage.
2. What if I only have liability coverage and the other drivers policy limits were not sufficient to cover my loss?
   You are subject to that policy limit and will have to absorb any loss over this limit.
3. Will the personal items that were in my car and damaged be covered?
   They are considered as property and would be covered. You will probably be asked to show proof of loss and/or to produce receipts.
4. Why does the insurance require me to sign a release?
   The insurance company has an obligation to their insured to protect them, as well as themselves against any future exposure. The release simply releases this potential exposure and acts as the documented agreement for the settlement of the claim.
5. How long do I have to settle my claim?
   In the state of Texas you have two years to settle your claim or you will have to file a suit to protect the time limit of this statute.
6. Will my insurance company assist me in filling my claim with the other drivers insurance if I only have liability coverage?
   This is really an issue of service and they may or may not assist you in this process. This is partly because they will have no exposure to them as you were not at fault and no coverage on your policy, therefore providing this type of service would be out of courtesy.
   

1. Who will pay for my medical treatment while I am treating?
   This is your responsibility and the insurance company normally will not pay for your treatment while you are treating. The insurance company will settle this part of your Special damages upon settlement of your claim. Sometimes the medical provider will execute a medical lien against your medical bills and/or treatment. This is the legal documentation to the insurance company that directs the payment for your medical bills to the provider upon settlement. The provider would be paid first and the remainder of the settlement would be dispersed accordingly. This may allow you to treat without paying anything up front. In addition, if you have PIP coverage your insurance company may pay the medical provider directly, up to the stated limit, for your treatment upon receipt of the medical bills.
2. Will all my medical treatment and/or bills be paid for?
   Consideration will be given to all all reasonable medical treatment and/or bills during the evaluation of your injury. Any medical treatment that is considered excessive, as it relates to your injury, will be evaluated and may not be considered. Often, the insurance company will have the medical bills reviewed from a professional outside source made up of doctors to determine if treatment was excessive and/or necessary.
3. What if the at fault party’s insurance coverage is not enough to cover all my injuries and pain and suffering?
   You can file an underinsured motorist and PIP claim with your insurance company for the difference. You should note that your insurance company will also evaluate your claim to determine the value of your injury.
4. How long will it take for the insurance company to settle my injury claim?
   When you have finished treating and are ready to settle your claim your injury will be evaluated. You do not have to be in a hurry to settle your claim. You have two years in the state of Texas to settle your claim or you will have to file a suit. This will protect the time limit of this statute.
   

1. How do I know what the value of my injury claim should be?
   The value of your claim is primarily based on the amount of medical bills, loss of earnings and any other expenses associated with your injury. These are known as the Special Damages. In addition, pain and suffering compensation is also considered. This is known as the General Damages. Your Claims Adjuster will evaluate your claim by reviewing the injury severity, what type of treatment you had, was the treatment necessary for the type of injury, was treatment excessive, was the treatment reasonable as compared to the actual vehicle damages caused by the accident, were there any previous injuries, what the doctor reports say about your injury, did your injury prevent you from doing your job or a light duty function at your job, are there any permanent or physical impairments, what are the short and long term ramifications of your injury, what similar cases like yours have settled for and is there any case law on claims like yours that would assist in the evaluation. In addition, what would be a fair consideration for pain and suffering compensation. After the evaluation is completed, a settlement range is established and negotiated within that range. The old school formula of 3x the medical bills is what you should settle for is not an approach practiced by the insurance companies. There is no formula and injury claims are evaluated case by case. You should consider all the items mentioned above and add up all your Special Damages, determine and document your pain and suffering (General Damages), establish a value range on your settlement proposal and negotiate within that range. Please note: The value of your injury does not change because you choose to hire an Attorney.
2. Do I need an Attorney?
   This is your decision but you should know that you have 2 years in the state of Texas to settle your claim or file a suit. This will protect the time limit of this statute. You can always try and settle the claim yourself and hire an Attorney if you are not satisfied with the handling of your claim. Your Attorney will collect 33% to 50% of your settlement, plus any expenses.
3. What if the at fault party’s insurance limits are not sufficient to cover my property damage or my injuries?
   You could file a claim on your uninsured / under-insured motorist coverage for the difference. You could also file your vehicle damages on your collision coverage and let your insurance company subrogate and recover the damages paid out. Remember, if you have PIP coverage you can use this for your medical bills and loss of earnings.
4. How do I know the settlement value for my total loss vehicle is fair?
   You can ask them to provide you with their support documentation on the ACV and research it yourself.