FREE Car Accident Help Questionnaire

214-321-4105

Car Wreck in Garland

Automobile insurance policies in Texas are highly regulated. For years, the Texas Department of Insurance (TDI) required all insurance companies to utilize standardized language and coverages for everyone. This consistency in terms and policies benefited the consumer because they could shop for competitive coverage based on price and without losing any benefits. Unfortunately, in 2005, the TDI decided to change those standardized requirements to allow non-standardized auto policies to be sold in Texas. This has resulted in the introduction of policies from several insurers with unusual (at least in reference to traditional terms) and “hidden” restrictions. In essence, the insurance policies are sold for bargain rates but with reduced coverage.

Here are some examples of the differences in between standard Texas policies and new cut rate policies:

Standard Texas policies allow for exemplary and punitive damages while many new, reduced rate policies do not allow for this coverage
Standard Texas policies do not depreciate the costs to repair or replace the damage to a vehicle, unless the car is a total loss. Non-standard policies, however, routinely provide for depreciation of repairs and replacement costs after a partial loss. In other words, non-standard policies will pay only a reduced percentage of the actual repair costs.
Non-standard policies usually do not allow for coverage when the insured is operating a motor vehicle for any business purposes. For example, delivering newspapers, pizza, or flowers. Coverage for these types of contract labor would have to be separately purchased.

There are many more examples of deviations from traditional standard policies and new, cut rate, non-standard policies. The key is to review your policy and understand the terms and what is and is not covered. You do not want to get stuck with a policy that is not specific for your situation. That would be a loss for you in the end.

Have more questions about insurance coverage? Maybe you have been involved in a car accident and need help. Call our office to discuss your options and if our firm can assist you with your accident claim. Here is how to contact us: