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Top 5 Misconceptions About Taking Auto Insurance in Texas!

Prestizia Insurance
Top 5 Misconceptions About Taking Auto Insurance in Texas!

Auto insurance is an agreement between us, the buyer, and the insurance company that shields us against monetary loss in accidents or theft of our vehicle.

Not every situation is in our control, and at times, an accident is just waiting to happen. In such an unfortunate circumstance, what adds insult to injury is the handsome cost of damage to the other person's vehicle that we might have to bear. 

Auto insurance safeguards us from shelling out a fortune in such a tragic situation. Depending on the type of insurance we have taken, auto insurance bears all the expenses for damage caused by us to the other vehicle during an accident. Furthermore, it also protects our car if it is damaged or stolen. 

We believe many misconceptions about auto insurance in Texas to be accurate. Understanding them becomes even more critical if we are looking for a new car insurance company in Texas to buy car insurance. 

Let's debunk the most common misconceptions in the article. 

Misconception 1: Auto insurance is not obligatory in Texas

The norms set by the authorities make it mandatory for all drivers to substantiate evidence of being competent in paying for the damage caused to the other vehicle at any point in time. Texas drivers are bound to have minimum insurance coverage of $30,000 per wounded person and $60,000 per accident, as per state law. The most common means to ensure this is buying liability insurance. 

Misconception 2: A minimum insurance cover is sufficient

Most of us tend to assume that a minimum coverage in auto insurance is sufficient. A minimum insurance cover in auto insurance only helps in averting penalization from the authorities. It fails to cover many critical aspects of auto insurance, most notably the damage from natural calamities. 

Misconception 3: A car's color impacts insurance premium 

When looking for a new car insurance company in Texas, many drivers commonly assume that the car's color impacts the insurance premium amount, which is also a big misconception. The premium amount is determined by the car's condition, age, type, and credit history. The older our car and poor our credit score, the more will be our insurance amount.

Misconception 4: Insurance also covers the car loan amount 

Auto insurance in Texas only covers the aspects mentioned by the company in its clauses. In case a car is stolen, most companies are liable to pay only for the actual cost of the car minus the depreciation in its value with time. For instance, if our loan amount is higher than the value of our car, the company does not hold any obligation to pay for it. 

Misconception 5: Not reporting accidents makes premiums low

Last but not least, we have a misconception that not reporting a car accident will lower the premium amount in the long run. But, when the other party reports the accident to claim compensation, the authorities immediately reach out to our insurance company for the compensation amount, tarnishing our goodwill.

Prestizia Insurance is a leading auto insurance platform in Texas. It provides a diverse range of commercial and personal insurance services.

Prestizia Insurance
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