How Does an Auto Insurance Policy Work? 

Understanding how an auto insurance policy works is essential for every driver. At Liberty Auto Insurance, we believe that knowing the basics of your coverage can help you make informed decisions and stay financially protected on the road.

Here’s a straightforward look at what an auto policy covers, how claims are handled, and why having the right coverage matters.

What Does an Auto Policy Cover?

While inclusions may vary depending on the insurer, a typical auto policy may offer the following:

• Personal liability coverage can cover third-party injuries or property damage you cause while operating your vehicle.
• Collision coverage can help pay for repairs caused by hitting an object or another vehicle, regardless of fault.
• Comprehensive coverage can cover damage caused by falling objects, fire, natural disasters, theft or vandalism.
• Personal injury protection (PIP) can help pay for medical expenses and lost wages for you and your passengers after an accident, regardless of fault.
• Uninsured/underinsured motorist coverage can help pay for your losses if you’re hit by an at-fault driver with little or no insurance.

How Do Insurance Claims Work?

If you’re involved in an accident or your vehicle is damaged, filing a claim is the first step toward getting help. Here’s how the process usually works:

1. Document key details about the incident, including by taking photos and getting the contact information of other involved parties.
2. Contact our team as soon as possible to report the accident or damage.
3. Share information about what happened, including photos and any police reports, if available.
4. We’ll review your policy and the details of the incident to determine what’s covered.
5. If your claim is approved, we’ll help arrange repairs or compensation according to your policy terms.

Why Is Auto Insurance Important in Texas?

Texas law requires drivers to carry minimum amounts of liability coverage. Lenders may also ask for proof of coverage if you finance your vehicle. Regardless of requirements, auto insurance can help you avoid significant out-of-pocket costs if your vehicle is damaged in an accident or other covered risk.

Our team at Liberty Auto Insurance is here to help you understand your options and find coverage that fits your needs. If you have questions or want to review your policy, contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.