Insurance guide

Buying

• Buying auto insurance for the first time: what do I need?
• What is the legal minimum in Texas? What does 30/60/25 mean?
• What is the difference between split limits and a combined single limit (CSL)?
• How high should my liability limits be?
• What do collision and comprehensive cover?
• My car is financed. What is gap coverage?
• How do I choose a deductible?
• What are PIP and UM/UIM? Can I go without them?
• What affects the price of auto insurance?
• Why do young drivers pay more? What discounts can I ask about?
• Someone in my household has a license but doesn't drive my car. Do they go on the policy?
• Why can an online estimate differ a lot from the final price?
• What happens if something is entered wrong or left out?
• Why does a gap in coverage matter? How do I switch without one?
• How long is a policy term? Can the price change at renewal?
• What should match when comparing prices?
• Does my personal auto policy cover ride-hailing or delivery driving?

After a loss

• After an accident, when must I call the police?
• What information do I exchange at the scene? What does the law require?
• How do I report a claim? Carrier or agent?
• The other driver was at fault. Who do I contact?
• What happens after I file, and how long does it take?
• Can I choose my own repair shop?
• Who pays for a rental car while mine is being repaired?
• My car was totaled. How is it paid?
• Should I report a small scrape? Will my price go up?
• What if I disagree with the claim decision?

Good to know

• What happens if I drive without insurance?
• If police ask for proof of insurance, does a card on my phone count?
• Does credit affect my auto insurance price?
• Is "full coverage" a type of insurance?
• If I lend my car to a friend and they crash, whose insurance pays?
• What is an SR-22?
• What is the difference between an agent and a carrier?

Key terms

Declarations Page (Dec Page)

The first page of your policy: who is covered, what is covered, and how much it costs

Common mix-up: You need this page both to switch insurers and for mortgage paperwork

VIN (Vehicle Identification Number)

The car's ID: 17 letters and digits.

Common mix-up: It is not your license plate number.

Split Limits

Three figures: per person, per accident, and property.

Common mix-up: Often misread as one combined total; the figures are in thousands of dollars.

Personal Injury Protection (PIP)

Regardless of fault, it pays medical bills and lost wages for you and your passengers.

Common mix-up: In Texas it can only be dropped by written rejection.

Uninsured Motorist BI (UM) / Underinsured Motorist (UIM)

If the other driver has no or too little insurance, this pays for your injuries.

Common mix-up: Uninsured cars are common on Texas roads; declining it takes a written signature.

Collision

Your car hits something or rolls over; this repairs your own car.

Common mix-up: It applies regardless of fault, but you still pay the deductible.

Comprehensive (Other Than Collision)

Damage not caused by a collision: theft, vandalism, hail, flooding, hitting a deer.

Common mix-up: Despite the name, it does not cover collisions — the most common misreading.

Rental Reimbursement

Pays toward a rental car while your car is repaired after a covered claim, up to a daily limit.

Common mix-up: Not included automatically; it does not cover everyday car rentals.

Gap / Loan-Lease Payoff

On a total loss, it covers the difference between the payout and the loan balance.

Common mix-up: It only makes sense on a financed or leased vehicle.

Excluded Driver

A person named on the policy as not covered; nothing is paid if they crash.

Common mix-up: Excluding a household member carries high risk and must be an explicit choice you make.

SR-22

A proof-of-insurance filing required by a court or the DMV.

Common mix-up: It is not a type of insurance; it is a filing.