Understand your car and what it covers
Hitting the gas on your car feels freeing, but the thought of navigating auto insurance can leave you feeling stuck at a red light. UHCU Insurance Services is here to shed light on the intricacies of insurance, ensuring you cruise with confidence towards financial security.
Your Insurance Shield
Imagine auto insurance as a trusty shield, protecting you against financial disasters if the unexpected happens on the road. It's a contract between you and your insurance company, where you pay a premium, the insurance company agrees to pay your losses as outlined in your policy.
This shield covers three main areas:
- Property: damage to or theft of your beloved car.
- Liability: legal costs if you injure someone or damage their property while driving.
- Medical: medical expenses, and in some cases, even lost wages and funeral costs.
Personal auto liability coverage is mandated by most U.S. states, and laws vary. Auto insurance coverages are priced individually (a la carte) to let you customize coverage amounts to suit your exact needs and budget.
Policies are generally issued for six-month or one-year timeframes and are usually renewable. The insurance company sends a notice when it’s time to renew the policy and pay your premium. Most auto insurance companies will prorate your premium if you decide to cancel/switch insurance providers before your renewal date. This means you don’t always have to wait until your renewal date to make changes to your policy or switch providers. Be sure to review your policy details as it relates to cancellation before making any final decisions.
Who's Covered? And When?
Your auto policy will cover you and other family members on your policy. In the event that someone not listed on your policy is driving your car with your permission, your insurance may still provide coverage, depending on the specific terms of your policy.
Personal auto insurance will also not provide coverage if you use your car to provide transportation to others through a ride-sharing service Uber or Lyft with your personal policy, unless you invest in specific ride-sharing coverage.
Is auto insurance coverage mandatory?
Laws vary across states, but most require these essential layers of protection:
- Bodily Injury Liability: Pays for injuries or death you cause while driving up to the limit selected on the property damage liability.
- Property Damage Liability: Covers damage your car inflicts on other vehicles or property.
Many states also mandate:
- Medical Payments or Personal Injury Protection (PIP): Covers medical expenses for you and your passengers, PIP can even cover non-medical expenses and lost wages.
- Uninsured/Underinsured Motorist Coverage: Your financial superhero when the other driver lacks insurance or enough coverage.
Beyond the Basics: Tailoring Your Coverage to Your Needs
While the bare minimum protects others, it might not shield your own car. That's where optional coverage comes in, like:
- Collision: Reimburses you for your car's battle wounds after a collision, whether it's a friendly tree hug or a fender-to-fender tango with another vehicle.
- Comprehensive: Think fire, floods, theft, hailstorms, even falling asteroids (because hey, stranger things have happened)! This covers damage from events beyond your control.
- Glass Coverage: Cracked windshield got you feeling down? This optional add-on covers those inevitable glass mishaps.
Loan/Lease payoff: Bridging the Value Gap
Collision and comprehensive only cover the market value of your car, not what you paid for it—and new cars depreciate quickly. So, if your car gets totaled or stolen, the insurance payout might not cover your loan balance. That's where gap insurance swoops in, closing the financial gap between your car's worth and what you owe (can be subject to a limit). Remember, for leased vehicles, gap coverage is usually included in your lease payments.
UHCU Insurance Services: Your Auto Insurance Navigator
Choosing the right car insurance might feel like deciphering an ancient text, but fear not! UHCU Insurance Services is here to guide you through the process. We offer flexible options, competitive rates, and expert advice to help you find the perfect coverage for your needs and budget. So, stop stressing about insurance and start enjoying the open road with complete peace of mind.
Ready to find the right policy for you and your car? Give UHCU Insurance Services a call at 512.435.4555 or get a quote online.
UHCU Insurance Services, LLC is a Credit Union Service Organization. Business conducted with UHCU Insurance Services, LLC is separate and distinct from any business conducted with United Heritage Credit Union, its parent Credit Union. Insurance products offered by UHCU Insurance Services, LLC are not (i) deposits of United Heritage Credit Union, its parent Credit Union or its partner Alloy Insurance Partners, therefore are not protected by the NCUA and are not exclusive to Credit Union members and (ii) an obligation of or guaranteed by UHCU Insurance Services, LLC, its parent Credit Union or its partner and may be subject to risk. UHCU Insurance Services offers coverage for Texas residents only. Any insurance required as a condition of an extension of credit by United Heritage Credit Union need not be purchased from UHCU Insurance Services, LLC and may be purchased from an agent or insurance company of the member’s choice.
