When people ask me to lower their car insurance, the first idea is usually to drop to liability only. Sometimes that’s the right call. Before you make it, here is what each one actually pays for.
Liability only pays for the other person. If you cause a wreck, it pays for their car and their injuries, up to your limits. Texas requires at least $30,000 per injured person, $60,000 per accident, and $25,000 for property damage. It pays nothing to fix or replace your own car.
“Full coverage” adds your own car. It usually means two coverages. Collision fixes your car after a wreck, no matter who caused it. Comprehensive covers theft, hail, a fallen tree, and flood water. After Harvey, flooded cars were paid for under comprehensive. Drivers with liability only paid for their own.
Check three things on your policy:
1. Do you still owe money on the car? If so, your lender almost certainly requires collision and comprehensive.
2. What is your car worth today? If it’s worth only a few thousand dollars, collision may cost you more over a couple of years than the car is worth.
3. Are your liability limits still the state minimum? Many newer cars cost more than $25,000 to replace. If you cause the damage, you owe whatever your policy doesn’t cover.
If you want me to look at your auto policy and show you what each option would cost, call my office at 281-822-1954. I’m glad to do it at no cost.
Do you know what your car is worth today?
Westly Rogers
Rogers Financial Agency LLC
Rogers Financial Agency LLC, 6235 McHard Rd, Suite 300, Houston, TX 77053. 281-822-1954. Texas Agency License #3530161.