Most standard auto insurance policies at Paragon Independent Insurance Agency don’t cover rental cars in Plano, TX. That’s because most standard policies only cover the insured individual’s vehicle damage. And since you don’t own a rental car, your policy likely won’t provide any coverage for it.

There Are Some Exceptions, Though

While most standard auto insurance policies don’t cover damage to rental cars, there are some exceptions.

Get PreApproval

For example, if you have both comprehensive and collision coverage on your vehicle, that coverage may extend to rental cars in some circumstances. However, this will only be the case if you let your insurer know that you’ll be renting a car in advance and they agree to extend your coverage. Without prior approval from your insurer, any damage to a rental car probably won’t be covered.

Liability Coverage

Another exception has to do with liability coverage. Most standard auto insurance policies include at least some liability coverage, which can help pay for damages if you’re found at fault in an accident. In most cases, this coverage will extend to rental cars as well. However, it’s important to note that liability coverage only pays for damages to other people and property—not for damages to the rental car itself.

Add Temporary Coverage

Some policies allow you to add coverage for rental cars on an as-needed basis. We can check to see if this is an option with your policy.

As you can see, whether or not your auto insurance policy covers rental cars can be a grey area. To avoid surprises down the road, it’s always best to contact Paragon Independent Insurance Agency before renting a car in Plano, TX.

Although car insurance creates a sense of peace for many of us, the type of coverage you carry determines the benefits and coverage options you have access to as a policyholder. Our Plano, TX team at Paragon Independent Insurance Agency is committed to helping drivers understand the differences between liability insurance and other types of auto coverage.

Liability Insurance

Liability insurance is required by Texas law. This insurance covers injury or damage to other drivers’ cars and personal property. However, this type of coverage won’t cover your car’s damage in an accident. It’s only designed to protect the other driver, their property, and their vehicle. As a result, if your car is damaged in an accident and all you have is liability insurance, your coverage will not pay for your vehicle’s repair. You will be forced to pay for the repair of your car out of pocket. If you’re looking for coverage that meets state guidelines and protects your vehicle, you must purchase more than liability insurance. You will also need to invest in comprehensive and collision if you want protection for your car for damage caused by accidents and non-moving incidents.

Auto insurance has many layers, making it easy for drivers to get the coverage they want and need most. State law only requires drivers to carry liability coverage, but you’ll also need more insurance to cover your car. Call us if you have questions about what is covered under different auto insurance policies. We’d be happy to discuss your coverage options and get the coverage you need most. 

Auto insurance fraud can be committed by or against the policyholder. Committing auto insurance fraud can result in your claim being rejected, your policy being canceled, and even your prosecution. Here are the different types of auto insurance fraud you should be aware of as a Plano, TX resident.

1. Falsely reporting a stolen vehicle

This fraud involves the policyholder falsely reporting a claim of a stolen vehicle under comprehensive coverage to get a payout. A policyholder who sells, intentionally abandons, or destroys their car to make a false stolen vehicle claim will likely face severe penalties such as jail time.

2. Staged Accident

Staged accident fraud is a reasonably common auto insurance fraud, with drivers continuously devising ways to stage accidents and make payout claims. The fraud may involve the driver in front of you abruptly slamming their brake so that you unavoidably rear-end them. Other drivers go to the extent of planting witnesses who will provide false information testifying that you were at fault.

3. Over-Valuing

This fraud is where the policyholder overstates the value of their car, equipment, or property to get higher compensation from the auto insurer. At Paragon Independent Insurance Agency, we recommend you do a vehicle valuation before purchasing auto insurance to reduce the chances of committing this fraud.

4. Misrepresentation/Ommission

This auto insurance fraud involves the policyholder stating that they reside in areas with cheaper rates or not including all the drivers under the policy. Additionally, the policyholder can opt not to provide all the pertinent information on their auto insurance policies to make the rates cheaper.

Purchasing auto insurance from a highly respected insurer is the first step to protecting yourself from falling victim to auto insurance fraud. Paragon Independent Insurance Agency boasts veteran insurance experts who provide Plano, TX residents unbeatable auto insurance assistance. Contact us today.

Whether you are buying car insurance for the first time or a seasoned car owner, you can always learn something about car insurance to ensure you don’t get a raw deal. At Paragon Independent Insurance Agency in Plano, TX, we have years of experience in car insurance, and here are tips you can rely upon before heading to the market:

Understand auto insurance coverages

To get a policy that satisfies your current needs, you need to learn about different coverage options. We are not saying you know all the options, but at least you know about the common ones. Understanding the different coverages ensures you buy only those that you need.

Do your research

Don’t rely on everything you hear — there are several myths surrounding car insurance, and they can easily cloud your judgment when shopping for a policy. Having the correct information helps you make an informed decision.

Make comparisons

Don’t always settle for the first quote you bump into. Compare quotes from several insurance companies. Price shouldn’t be the only decider. Compare the insurance features of different companies. And the good thing is you don’t have to do this all by yourself. Engage an independent insurance agent to give you quotes from various insurers.

Partner with a reputable insurance agent

When purchasing auto insurance, go for an independent and trusted insurance agent. Sometimes, figuring things out by yourself can be challenging, so you need someone to walk with you. A good insurance agent acts as your financial advisor, so don’t settle for one that isn’t up to the task.

Need to learn more about auto insurance in Plano, TX? Please get in touch with Paragon Independent Insurance Agency. We will analyze your insurance needs and recommend a car insurance policy that meets your budget and other needs.