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Auto Accidents: Understanding Texas Auto Insurance —- PROPERTY DAMAGE INSURANCE

As part of your automobile policy, you will also have the option to purchase insurance that protects your vehicle if it is damaged.  This coverage isn’t required by law, but if you have a loan on your vehicle, then most lenders will require this insurance.

COLLISION.  Collision insurance pays for the cost of repairing or replacing your car after an accident.

COMPREHENSIVE (OTHER THAN COLLISION). Comprehensive coverage will pay for the cost of repairing or replacing your car when it is damaged by something other than a collision.  For example, comprehensive coverage applies when the car is stolen, vandalized, damaged in a fire, or sustains hail damage, among many other protections.

AMOUNT OF COLLISION AND COMPREHENSIVE COVERAGES. Your collision or comprehensive coverages will generally pay for the cost of repair of your vehicle.  However, if the cost of repair exceeds the actual cash value of your car — what it would cost to buy a car without the particular damage — then the insurance company will only pay you the actual cash value of the car, plus tax, title and license fees so that you could try and replace your car.

TOWING AND RENTAL COVERAGE.  Most insurance companies will also give you the option to purchase towing and rental coverages.  Towing coverage will pay for the towing charges that you incur when you can’t drive your car.  Towing coverage would also help pay for charges you incur to change a flat tire or jump-start your battery.

Rental coverage pays for the cost of a rental car when you need a rental car because of an event covered by your policy.  For example, if you’re in a wreck and need a rental, then the policy would pay for a rental.  But if you need a rental because your car has mechanical issues, the rental coverage wouldn’t likely apply in that situation.

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