WHAT IS FIRST-PARTY AUTO AND PROPERTY INSURANCE AND DO I NEED IT?

Any First-Party Property Insurance attorney in Texas will tell you that there are three primary coverage areas: Collision Insurance Coverage, Comprehensive Insurance Coverage, and Un/Underinsured Motorist Coverage. First-party property simply means: things that you own. In the world of car insurance, this usually means your automobile.

Collision Insurance covers damage to your car due to a wreck, regardless of whose fault it is, and in spite of whether there was another car involved. If another party is to blame, your insurance company may go after the other motorist’s company for the money, but this won’t matter to you. Your Collision Insurance has you covered either way.

The not so honestly named Comprehensive Insurance covers damage to your automobile that is not caused by a car wreck, such as theft, or a tree falling from a lightning strike. Review your policy to see which acts of nature are actually covered. Don’t make assumptions.

With Collision and Comprehensive coverage, you aren’t required to select any limits. If you still have a loan out on your vehicle or if you are leasing, you won’t even have to make this decision. The bank will require you to buy both.

If you own your automobile outright, then your decision will depend on the car’s book value. You probably won’t get any more than this from the insurance company, regardless of how passionately you’ve taken care of your beloved vehicle.

If you purchase both Collision and Comprehensive coverage, your last decision will be the size of your deductibles, that is, the per-accident, out-of-pocket expenses you pay before Collision and Comprehensive payments kick in. If you have a comfortable, liquid emergency fund, jack up these deductibles as high as you can take them. You’ll save cash on both the premiums and the premium increases that may result from the small claims that come with a lower deductible. This is one area where self-insurance can save you tons of cash.

Our First-Party Property Insurance attorneys at Arguello Law Firm would like to warn you that some companies might try to sell you un/underinsured motorist coverage that covers your property. If you already have Collision and Comprehensive coverage, this additional First-Party Property Insurance is probably unnecessary. Collision and Comprehensive will cover you regardless of who is to blame.