What is the “Right of Subrogation” and when should I use it?

An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means the insurance company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party. After expenses, the amount recovered must be divided proportionately with the insured to cover any deductible for which the insured was responsible.

To provide further explanation - in the event you are involved in an accident that is not your fault, your insurance company may agree to pay your claim, but not until you agree to assign your rights to sue the at-fault party.  Subrogation is the process by which you sign over your rights to sue to your insurance company.  This will allow your insurance company to pay your claim and pursue reimbursement from the negligent party. 

Subrogation is common in auto insurance.  As an example, suppose you were hit by an uninsured motorist.  If you carried uninsured motorist or collision coverage on your policy, you could file the claim with your own insurance company, thus avoiding the hassle of suing the uninsured driver for the damages.  At this point though, you are the only one that has the right to sue the uninsured driver, as you were the one they caused damage to.  The uninsured driver did not hit your insurance company, they hit you.  Your insurance company at this time does not have the right to sue them for the accident.

Therefore, as a condition of receiving payment from your company, you will be required to sign over your right to sue to the insurance company.  This signed statement will then give your insurance company the right to sue the uninsured driver and collect the damages.  This process will allow you to receive payment from your insurance company now for the claim and will allow your insurance company to recoup the amount of money they paid you for the claim from the at fault driver at a later time.  It is a win-win for both you and your insurance company.

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Understanding Non-Owners Car Insurance

Non-owners car insurance is a policy you purchase when you do not own a vehicle. It provides car insurance for an individual who wants coverage when driving other’s vehicles. In most cases, the only coverage available on a non-owners’ policy is bodily injury liability, property damage liability, medical payments, and uninsured motorist. Non-owner policies will not include comprehensive nor collision coverage. The coverage is designed to pay for damage to the owned vehicle for perils such as theft, collision, fire and so forth. Since the policy doesn’t cover owned vehicles, these coverage cannot be purchased.

Coverage does not extend to household members and only applies to the person listed on the declarations page. In the event of an accident, the non-owner policy is designed to pay after the car policy coverage is exhausted. Therefore, it is designed to be a secondary policy. For these reasons, a non-owner policy is not designed for teenagers that want to be covered when driving their parents’ car. If an accident occurs and it is the teenager’s fault, the parent’s primary policy will not provide coverage, as the teenager is not covered. The non-owner policy only provides coverage for the teen. Therefore, the parent’s interests are not protected in this scenario.

Non owner policies were designed for a person that does not own any vehicle and does not have regular access to a particular vehicle, including work related vehicles. Additionally, you cannot add any drivers to this type of policy. Only the named insured (the person who was issued the policy) will have coverage.

Usually, coverage is not provided for any of the following:

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How to Compare Austin Car Insurance Rates and Policies

If you are looking for a new car insurance policy, your first instinct is probably to compare insurance premiums in order to make sure that you get the best deal on your policy. But comparing rates alone will not give you a good indication of which policy is more cost effective, reliable and better suited to your overall needs. Use this list to help you narrow own your choices for all the reasons you should consider, not just price.
 
1. Compare coverage options.
Check out the coverage options for all the different policies you have gotten quotes for. Make sure they are comparable and that they offer you the protection that is most important to you. This may mean they only consist of state-required coverages or that they include additional protections like uninsured motorist coverage.

2. Compare deductibles and limits.
Policy premiums will vary, especially if you set different limits and deductibles on each. It isn’t a fair comparison to put an inexpensive policy with high deductibles and low limits up against one with low deductibles and high limits. So when you do your comparisons, make sure the deductibles and limits on each policy, for each coverage option, are similar.

3. Compare A.M. Best ratings.
An insurance policy is only as good as the company that issues it. When comparing two different policies from two different companies, don’t just focus on price, deductibles and coverages; take a look at the A.M. Best rating for each company to make sure they are equal in terms of financial stability.

4. Compare customer service and payment options.
If you like to do business online, make sure that the insurance companies you are looking at have that capability. If you prefer to talk on the phone, make sure they can do that. Also, check out their different payment options (online, automatic draft, check, etc.) and choose the policies from those companies that have what you are looking for.

5. Compare rates.
Now that you’ve made sure that you have several similar policies from different companies, it’s time to actually look at the rates and compare them. Be sure to check out all premium types—the annual, semi-annual, quarterly and monthly so that you get a good idea of the differences.
Once you’ve compared all these items and narrowed down your choices, you should finally come up with the policy that meets most, if not all, of your criteria.


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Texas Car Insurance

Texas law requires drivers in Texas to pay for the damages they cause. Texas residents do this by purchasing Texas car insurance. Car insurance in Texas pays to repair or replace the other driver’s car and pays other people’s medical expenses when you are at fault in an accident.

You must carry at least the minimum amount of car insurance coverage required by the Texas financial responsibility law. Texas minimum liability limits were $25,000 for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 25/50/25 coverage. Texas Car insurance limits increased on January 1, 2011, to $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. The new car insurance limits may be seen as 30/60/25.

Because of new vehicle prices and the rising cost of medical care, the minimum amounts might not be enough if you cause an accident. If your Texas car insurance limits are too low to pay for all of the other driver’s costs, the driver may sue you to collect the difference. To protect yourself financially, we recommend buying more than the basic limits. Consider buying liability limits seen as 50/100/50 or higher.  When you compare quotes with us, we set the default limits of coverage to 50/100/50 for you.  They can be changed easily upon your request.

We are here for you; no hold times or automated systems. Quickly and easily submit your information for a free Texas car insurance quote using the best technology available. Enjoy the convenience of shopping online and feel confident knowing we are here for you when you need us.

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