• definitions coverage's
• liability coverage's
• medical payments coverage
• uninsured motorist coverage
• first party physical damage
• insured's duties after accident or loss
• general provisions

will pay the other's expenses for accidents caused by drivers covered under your policy, up to your's policy's liabiltiy. These can include:

• Medical expenses for bodily injury
• Emergency aid at the scene
• Medical services for disease or sickness
• Compensation for loss of income
• Legal defense fees
• Funeral expenses

Property Damage

will pay if another person's property is damaged in an accident that's your fault, _________ ___________ can help pay for:

• Structural damages to homes, storefronts,etc..
• Vehicle repair or replacement costs
• Repair or replacement costs for other stationary objects

proof-of-insurance

• are asked for it by a police officier
• have an accident
• register your car or renew its registration
• get or renew your driver's license
• have your car inspected

• First offense: fine of $175 to $350
• More offenses: fine of $350 to $1,000, suspension of your driver's license, and impoundment of your automobile
• Offense without a driver's license: $2,000 maximum fine, 180 days in jail, or both
• Offense if you cause an accident with serious injuries or death: $4,000 maximum fine, one year in jail, or both.

• Your age, and for younger drivers, your marital status. Men under 25 and unmarried women under 21 have the highest rates. Drivers over 50 may get discounts.
• Your driving record and claims history. A good driving record can save you money. Insurance companies will charge you more if you have accidents or tickets on your driving record. Companies may also charge more for major convictions, some driving violations, and accidents that damage property. Some surcharges are mandatory and will apply to your premium for three years.
• Where you keep your car. Rates are typically higher for people who live in cities because they have more accidents and auto thefts than people who live in rural areas.
• Your car's primary use. Your rates will be higher if you drive your car to and from work or for business. Rates are lowest for people who only drive for pleasure.
• Your car's type. Collision and comprehensive rates are highest for luxury, high- performance, and sports cars. Rates may also be higher for cars that damage easily or cost more to repair.
• Your credit score. Companies often use your credit scores to decide if they want to sell you a policy and at what cost. A company can't refuse to sell you a policy or cancel or non-renew your policy based only on your credit.
• Whether you drove uninsured in Texas. Companies may charge more if you drove uninsured in Texas for more than 30 days in the 12 months before you applied for insurance. If you didn't, a company can't charge you more for liability coverage because of your prior lack of coverage.

• cooperate with the insurer in the investigation, settlement, or defense of any claim
• provide the insurer and police information regarding a hit-and-run driver
• protect the damaged property from further damage in the event of a damage to your auto coverage loss
• notify the police promptly if the auto is stolen
• notify the company promptly and permit the insurer to inspect and appraise the damaged property before it is repaired or replaced.

An insured agrees not to sue the insurance company to provide coverage until :

• he has complied fully with all terms of the policy
• the obligation to pay has been determined by judgment after trial or the insurer agrees in writing tha the insured has an obligation to pay

1. Non- renewal- The company may non-renew the policy by providing the named insured with 20 days written notice. State regulations may modify the requirements by restricting the notice or grounds.
2. Cancellation- During the policy period, the insured may cancel the policy by giving advanced written notice.

• If the insurer cancels the policy, it must provide 10 days written notice when the cancellation is made for nonpayment of premium or during the first 60 days of a new policy for almost any underwriting reason.
• The insurer must give 20 days written notice when the policy has been in effect for 60 days; if it is a renewal or continuation policy, and cancellation occurs because the driver's license of the insured, someone who lives with the insured, or someone who normally drives the insured's auto is revoked or suspended during the policy period or since the last annversary of the effective date; or the policy was obtained through material misrepresentation.
• State regulations may modify the notice requirements.

• the type and amount of coverage desired
• the individuals who will operate the auto
• where the vehicle is garaged
• the deductible amount
• the make and model of the auto
• the use of the auto
• number of miles driven
• age and sex etc...

Auto claims are settled at Actual Cash Value, and the insurer will :

• total the vehicle when the repair costs exceeds the value of the vehicle ( the insured is paid the value of the vehicle and the insurer retains the vehicle for salvage)
• repair the vehicle when the repair cost is less than the value of the vehicle ( the insurer pays all costs necessary to repair the damage )
• replace the vehicle when the insurer can find another vehicle of like kind and quality and offer it to the insured as a replacement vehicle

Also known as assigned risk plans, these are the oldest type of residual (shared) market plans. They provide auto coverage for drivers who are unable to obtain coverage in the normal or standard market, for example:

1. When a driver is refused coverage in the standard market ( because he is a high-risk driver), he may apply to the state's automobile insurance plan.
2. The plan is a pool made up of all licensed auto insurers in the state. The application made by a driver is assigned to one of the members (insurers) of the plan.
3. A notice of eligibility in the assigned risk pool must be provided to the insured if an automobile liability policy is non-renewed or canceled for other than non payment of premium. This notice is a state notifying the insured that he may be eligble for liability insurance through the assigned risk plan.

The premises and operations coverage of a garage liability policy is very similar to coverage provided under commercial general liabiltiy.

1. These coverages apply when bodily injury or property damage arises out of garage operations. Garage operations include the ownership, maintenacne, or use of the premises for purposes of a garage and all operations necessary or incidental to it.
2. Premises is defined as the premises where the named insured conducts garage operations including the areas immediately adjoining. For example, if a dealer decides to sell household appliances, these operations are not likely to be considered necessary or incidental to the operation of the business and would not be covered by this contract.

Garagekeepers insurance is a type of bailee coverage (protecting the business for damage to the property of their customers) available to automobile dealerships. Garagekeepers insurance provides coverage for damage to automobiles of others arising out of the general operation of business.

1. The need for garagekeepers insurance arises from the fact that garage liability insurane does not cover property damage losses to automobiles in an insured's care, custody, or control.
2. Specified peril coverage is available. Examples include fire, explosion, theft, and vandalism. Comprehensive and collision coverage are also available. All are subject to a deductible.
3. Losses not covered- The garagekeepers policy does not cover losses caused by:

• theft by an insider (by the named insured, employees, or shareholders)
• contractual liability
• products or work loss
• sound reproducing or receiving equipment, unless permanently installed in the auto
• other losses not covered such as those caused by war, rebellion, racing, and so forth.