The Top 5 Most Costly Auto Insurance Policy Mistakes

It is easy to make mistakes while setting up your auto insurance policy. Insurance agents may try to steer you away from plans that provide the best coverage to lower your premium and win your business from competitors. Contracts also contain language and terms that you may find confusing. As a result, you may be unaware of exactly how you will be covered in the event you need to use your insurance after an accident. The following five examples are mistakes people make on their policies.

1. Not including PIP: Although personal injury protection (PIP) is mandatory in Texas, you can sign a waiver to opt out. An insurance agent may entice you with lower monthly payments at the expense of signing away PIP coverage. PIP covers lost income, funeral, and medical expenses after an accident.
2. Neglecting UM/UIM coverage: You should always make sure you have UM/UIM coverage. It covers physical or property damage in the event you are hit by an uninsured or underinsured motorist. This coverage can pay for medical bills, lost wages, and disfigurement, partial or permanent disability. If you lack UM/UIM coverage, you can only receive the maximum amount covered by the at-fault driver’s policy (if they have one).
3. Not knowing who is covered: Make sure you know who is covered on your policy beforehand. If you allow other family members to use your vehicle, make sure they are listed as permissive drivers on your policy. This way if they get into an auto accident, they are covered.
4. Buying the minimum required amount: Your auto insurance policy is the one thing you do not want to be frugal with, as it can come back to haunt you later. Texas law requires a $30,000 minimum liability limit. As personal injury attorneys, we can tell you from experience that this is nowhere near enough to pay for the medical bills and lost income associated with a catastrophic injury.
5. Not researching your policy: Although you can research your policy beforehand, it may help to have an expert walk you through the details. Insurance contracts use confusing language on purpose. Know what you are getting into before signing a contract for your policy.

Mike Love & Associates, LLC Can Review Your Auto Insurance Policy

Insurance agents do not have your best interests in mind. They are in the business of making their company money, not ensuring you have what you need after an accident. Mike Love & Associates, LLC will review your policy at no cost. We can help you figure out if you have adequate coverage. It is better to know how you are covered before you need to use insurance.

How Would You End Distracted Driving?

Distracted driving has become a primary cause of car accidents across the country. National Highway Traffic Safety Administration statistics show 431,000 people were injured in distracted driving accidents in 2014. This is also a threat to Texans. Last year, distracted driving accidents killed 482 people in our state. Many of these crashes are caused by people using their phones while driving. Other accidents may involve motorists applying makeup, shaving or eating.The Texas Department of Transportation (TxDOT), and many other Texans, want to fix this public safety problem. TxDOT recently held a distracted driving summit to showcase solutions for preventing distracted driving. Policymakers, business leaders and law enforcement were on hand to discuss these solutions with the public.

Would These Solutions End Distracted Driving?

The fact is, there are many possible solutions to solving this issue.

• Stronger laws: We recently talked about Texas and distracted driving on our blog. Texas is one of four states that does not have a statewide ban on texting and driving. In many states, drivers can face fines and lose points on their license.

• Public campaigns: TxDOT’s distracted driving summit is the perfect example of safety campaigns can inform the public about this issue. During the summit, speakers discussed how changing our behavior can prevent the temptation to use our phones behind the wheel. For example, keeping our phones off while driving or placing them out of reach.

• Apps and other tech: Apps like AT&T’s DriveMode can disable text messaging while driving. Some apps go a step further and disable phones. LifeSaver locks the phone once it detects the user is driving. Parents or employers can install LifeSaver on phones to observe the driving habits of their children or workers. Users collect points and obtain rewards for safe driving habits. For parents, points could buy a new Xbox game. Employers could reward workers with paid time off. Cellcontrol uses a combination of apps and equipment installed in vehicles, which can prevent tampering.

• Self-driving vehicles: Some claim self-driving vehicles, or the technology utilized by these cars, will end distracted driving accidents. Automatic braking, steering and other features are set to become standard features on new vehicles within the next few years. However, many people will be unable to afford these vehicles for quite some time. Others may be unwilling to give control of their vehicles to machines and software. This solution may take more than a decade to materialize.

These are only four examples of how the federal government and states could attempt to solve the distracted driving problem. We are likely to see a combination of solutions working together.What solutions would you choose from this list? Would you add any solutions? Let us know by interacting with the Texas personal injury attorneys at Mike Love & Associates, LLC on Facebook or Twitter.

What Are the Differences Between PIP and Med Pay Coverage On Your Auto Policy?

If you or loved ones are involved in a car accident, lacking certain types of coverage means you may not be fairly compensated for injuries. Understanding the differences between certain types of coverage is a matter of significant importance.If your Texas auto insurance policy does not have personal injury protection (PIP) coverage or medical payments coverage (also called Med Pay coverage), you should finish reading this blog. People who lack PIP or Med Pay coverage may not have the resources needed to pay for medical bills, rehabilitation, lost wages and other costs associated with serious injuries.It is also extremely important to know the differences between PIP and Med Pay coverage because Texas law does not allow both on an individual policy! Keep in mind, we are only discussing Texas insurance policies. If you are from another state, insurance requirements and laws will be different.PIP coverage:

• Insurance companies are required under Texas law to automatically provide $2,500 PIP coverage, but because policyholders can opt to reject it, many people do not have the coverage.

• PIP coverage pays for 100 percent of medical expenses and rehabilitation therapies. This can include physical therapy, prosthetics and other necessary medical needs after surviving an auto accident.

• PIP coverage pays 80 percent of lost income.

• PIP coverage is not subject to subrogation in Texas. This is an important point because subrogation is the process insurance companies use to pursue reimbursement. People with PIP coverage on their policies will not be required to return PIP payments paid out after an accident. For example, if you settled with an at-fault driver’s insurance company for $8,000, but had $3,000 in PIP coverage, you would not have to return the $3,000 after settling because PIP is not subject to subrogation (meaning you keep $11,000 total instead of $8,000)! It helps to think of ‘subrogation’ as a fancy word for reimbursement.

Med Pay coverage:

• Unlike normal health insurance policies, Med Pay coverage has no deductible. For those of you unfamiliar with one of the unpopular aspects of health insurance policies, a deductible is the amount of money that you must pay before insurance covers a claim.

• Like PIP coverage, Med Pay coverage will cover the cost of hospital bills regardless of who is at fault, but it does not pay lost income. If you were to need a month off work to recover from your injuries, Med Pay coverage would cover your medical bills but not your month of lost income.

• Med Pay coverage is subject to subrogation and insurance companies can recover costs from claims. So if we use our example again of an $8,000 settlement, $3,000 in Med Pay coverage would mean you keep $8,000 and not $11,000. This is because you would have to reimburse the Med Pay payments out of your liability settlement.

• Unlike PIP, insurance companies are not required to offer Med Pay coverage.

Should I Get PIP or Med Pay Coverage for My Texas Auto Insurance Policy?

The differences between PIP and Med Pay coverage should ring alarm bells for Texas auto insurance policyholders. Let’s say for example you were to suffer multiple broken bones from a car accident. If you lacked PIP coverage or had the minimum amount required, you would be in trouble. Medical bills and lost income from missing work could create a financial catastrophe for you and your family. Even with minor injuries, not having PIP coverage could spell disaster. You would receive less money for your injuries with Med Pay coverage because it is subject to subrogation.Several weeks ago, we wrote a blog discussing how you could discover what was on your insurance policy. Details on whether you have Med Pay, PIP or none-of-the-above would be listed on your policy’s declarations page.The Texas personal injury attorneys at Mike Love & Associates, LLC would be happy to review your insurance policy at no cost. We can tell you what types of coverage you have and what types of coverage you are lacking.