Ten things to look for in an auto policy: Texas has resources to help

You are driving down I-35E when a car in the right lane sideswipes you, sending you careening into traffic in the left lane.
Now that’s a bad day.
You pull out your phone and make your first call to whoever is your crisis relative/friend. Your second call? That, of course, is to your insurance agent.
We all want an auto insurance carrier who works a claim quickly and fairly. But how can you find a good one who carries the auto policy you want?
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Here are my top 10 recommendations.
1. Understand the difference between the main types of automobile coverage. “Liability” coverage is the insurance that pays the other party for damages and injuries if you caused the accident. “Collision” coverage pays to repair or replace your car after an accident. “Comprehensive” coverage pays if your car is stolen or damaged by something other than a collision. “Uninsured motorist” coverage (UM) is intended to reimburse you for damages you suffered if the other driver is uninsured or underinsured. “Personal injury” protection (PIP) is insurance that pays for medical bills and associated costs if you or your passengers are injured in a car accident.
2. Use an independent insurance agent to shop for auto insurances. You may have used the same carrier for the last 10 years, but things change. Your carrier may have been bought out and the old adjusters fired and replaced with inexperienced people. Your carrier may have changed its internal policies on handling and settling claims. None of this will be disclosed by your carrier. An independent insurance agent will compare prices and coverage offered by different carriers.
3. Do your homework on policy prices and types of insurance on the Texas Department of Insurance website, www.helpinsure.com/index.html.
4. Sign up for the standard policy. You don’t want some imaginatively written policy that gives you very limited coverage. Read the endorsements. Some carriers who offer a standard policy significantly reduce coverage through endorsements.
5. Buy high limits on your coverage. The cost difference between a middle limit and a high limit can be relatively insignificant, but the higher payout could save you from a significant monetary loss.
6. If you want to save money, then get a high deductible. Just make sure you can pay the deductible when the time comes.
7. Buy UM coverage that equals your liability coverage. You can’t buy a higher UM coverage than your liability coverage, but you should at least match the amount.
8. Buy PIP instead of MedPay. MedPay is medical payment coverage. It is an optional auto insurance coverage that helps pay for medical expenses after a car accident. PIP offers more comprehensive coverage, including payments for lost wages.
9. Read your policy. By law, it must be written in plain language. Texas Insurance Code Section 2301.053 provides that a policy has to have a Flesch score of no less than 40. Reader’s Digest averages a Flesch score of 65. The higher the Flesch score, the easier it is to read.
10. Check your CLUE (Comprehensive Loss Underwriting Exchange) report. It shows claims filed for any car for the past seven years. Insurance companies can report information to CLUE when you file a claim. You can get a free copy of your report annually by contacting LexisNexis. Click on the “Request a consumer disclosure report” button.
Too much trouble? Then forgo the bells and whistles, buy cheap and stop driving on I-35. But where is the fun in that?
Attorney Virginia Hammerle is board certified in civil trial law by the Texas Board of Legal Specialization and an accredited estate planner. To receive her monthly newsletter, contact her at [email protected] or visit hammerle.com. This column does not constitute legal advice.