Actual Cash Value (ACV)
The depreciated market value of your vehicle at the time of loss. ACV is the standard valuation method on most auto policies and is calculated using Kelley Blue Book, NADA, or comparable sources. On a $40,000 vehicle five years old, ACV may pay $18,000 to $22,000 minus deductible at total loss.
Why It Matters ACV is appropriate for daily drivers. It is the wrong valuation method for classic, exotic, restomod, custom, or appreciating vehicles. A 1967 Mustang fastback worth $85,000 covered under ACV may pay only Kelley Blue Book at total loss, ignoring years of restoration investment.
Charles in Plain English
ACV pays for the depreciation. Agreed Value pays for the rebuild.
Related Agreed Value Stated Value Total Loss
Additional Driver Discovery (A.D.D.)
A carrier process that cross-references DMV records, vehicle registrations, address histories, and other public data to identify drivers the carrier believes live at your address. Used by Progressive and other major Texas carriers in 2026 to find drivers not disclosed on the policy.
Why It Matters CBS News reported a Denver case in December 2024 where a homeowner discovered a driver he had never met had been added to his Progressive policy through an A.D.D. search. The industry estimates unidentified drivers cost carriers about $10 billion annually in premium leakage. Carriers are not asking permission. They are matching public records to addresses and acting first.
Charles in Plain English
The carrier knows who lives at your address. The question is whether your policy does too.
Source: CBS News Colorado, Mystery Driver on Progressive Policy (December 2024)
Related Material Misrepresentation Permissive Use Driver Exclusion
Adjuster
The carrier representative who investigates a claim, estimates the loss, and determines what the policy pays. Adjusters work for the carrier, not for you. Field adjusters inspect vehicles in person. Desk adjusters review documentation remotely. Independent adjusters work as third-party contractors.
Why It Matters The adjuster's estimate is the starting point of every claim conversation. McDade reviews adjuster estimates against current Houston repair market rates and flags gaps before settlement, particularly on luxury vehicles where labor rates and OEM parts matter.
Related Claim Total Loss Direct Repair Program (DRP)
Aftermarket Parts
Replacement parts manufactured by companies other than the original equipment manufacturer. Industry data indicates aftermarket parts cost 20% to 50% less than OEM. Texas Insurance Code Section 1952.301 governs aftermarket disclosure requirements and OEM preferences for vehicles owned 36 months or less.
Why It Matters The cost savings flow to the carrier. The fit, finish, and structural integrity differences can flow to you, particularly on luxury vehicles. The John Eagle Collision Center case resulted in a $31.5M jury award after improper non-OEM repair on a Honda Fit roof contributed to severe injuries.
Charles in Plain English
The body shop you trusted is being told what to put back on your car. The question is whether you signed up for that.
Source: Texas Insurance Code Section 1952.301
Related OEM Parts Texas Insurance Code Section 1952.301 Direct Repair Program (DRP)
Agreed Value
A valuation method where you and the carrier agree to a vehicle value in writing before the policy is issued. Locked in for the policy term, with no depreciation and no fall-back to ACV. On a covered total loss, Agreed Value pays the full agreed amount.
Why It Matters For high-end clients with classic, exotic, restomod, custom, modified, or appreciating vehicles, Agreed Value is the only valuation method that does what most people assume Stated Value does. Specialty carriers like Hagerty, Grundy, and American Modern offer Agreed Value as standard.
Charles in Plain English
Stated Value sounds like a promise. Agreed Value is one.
Related Stated Value Actual Cash Value (ACV) Antique Vehicle
Antique Vehicle
Per Texas DMV Form VTR-54, a vehicle with a frame, body, and motor at least 25 years old, used solely for exhibition, club activities, parades, and other functions of public interest, plus occasional personal use. Antique-plated vehicles in Texas pay $50 for five-year registration and are exempt from annual safety inspections, with strict use restrictions.
Why It Matters The classification chosen at registration directly determines what insurance form is appropriate. Putting an antique-plated 1965 Mustang on a standard auto policy with daily-driver mileage assumptions is a structural mismatch that costs the client both ways: more premium up front, less certainty at claim time.
Source: Texas DMV Form VTR-54, Application for Antique License Plate
Related Agreed Value Stated Value
At-Fault Accident
An accident in which you are determined to be 51% or more responsible. Texas operates on a modified comparative fault rule: at 51%+ fault, you are barred from recovering damages from other parties. At-fault accidents typically trigger premium surcharges and affect underwriting for 3 to 5 years.
Why It Matters One at-fault accident can raise premium by 40% to 80% at most carriers. Multiple at-fault accidents in 36 months trigger non-renewal at most carriers and surcharges at the few that retain the risk.
Related Comparative Fault (Texas Modified) Claim Underwriting
Bodily Injury Liability
The portion of your auto liability coverage that pays for injuries you cause to others. Texas minimum is $30,000 per person, $60,000 per accident. High-net-worth households typically need $100,000 to $500,000 limits plus a personal umbrella policy of $1M to $5M.
Why It Matters A serious multi-vehicle accident with multiple injured parties can exhaust 30/60/25 in a single hospital visit. If your liability limits run out, you are personally responsible for the difference and the other driver can sue you.
Related Liability Coverage Minimum Limits (Texas 30/60/25) Property Damage Liability
Bundling
Combining home and auto policies with the same carrier to qualify for multi-policy discounts. Bundling typically saves 10% to 25% on auto premium and can preserve loyalty discounts on both lines.
Why It Matters Bundling is real savings, but only when both policies are well-structured at the same carrier. Some clients should not bundle if the home and auto needs require different specialty markets. McDade evaluates bundling on a case-by-case basis through PGI's 220+ carrier network.
Related Multi-Policy Discount Discount Stack
Cancellation
The carrier ending your policy mid-term, typically for non-payment, fraud, or material misrepresentation. Texas Department of Insurance rules govern when and how a carrier may cancel.
Why It Matters Cancellation is different from non-renewal. Cancellation ends coverage now. Non-renewal ends coverage at term. Both can affect insurance scoring with new carriers and can trigger SR-22 filings for certain reasons.
Related Non-Renewal Lapse SR-22
Claim
A formal request to the carrier for payment under the policy after a covered loss. Filing a claim begins the adjuster process and is recorded in your CLUE report, where it stays for seven years. Auto claims affect future underwriting, future premium, and eligibility for claim-free discounts.
Why It Matters Not every loss should be a claim. The 1.5x to 2x deductible rule applies. McDade discusses claim strategy with clients before the claim is filed, particularly on glass and minor losses where the carrier philosophy varies widely.
Related Adjuster Total Loss Full Glass Endorsement
Collision Coverage
Pays to repair or replace your vehicle after a crash with another vehicle or object regardless of fault. Optional under Texas law unless required by your lender or lessor. Typical deductibles range from $500 to $2,500.
Why It Matters Collision is typically the most expensive line item on a full coverage auto policy. The 10% rule: if combined collision and comprehensive premium exceeds 10% of vehicle ACV, dropping to liability-only deserves consideration.
Related Comprehensive Coverage Liability-Only Full Coverage
Comparative Fault (Texas Modified)
Texas operates under a modified comparative fault rule (also called the 51% bar rule). If you are 50% or less at fault, your damages are reduced by your percentage of fault. If you are 51% or more at fault, you cannot recover anything from the other party.
Why It Matters The 51% threshold is binary. Being 50% at fault means your recovery is cut in half. Being 51% at fault means your recovery is zero. Adjusters fight hard on the percentage allocation in marginal cases. UM/UIM coverage protects you when comparative fault disputes leave you without external coverage.
Related At-Fault Accident Uninsured Motorist (UM) Underinsured Motorist (UIM)
Comprehensive Coverage
Covers damage to your vehicle from non-collision events: theft, vandalism, fire, hail, flood, falling objects, animal strikes, glass damage. Optional under Texas law unless required by lender or lessor. Comprehensive premiums typically run 40% to 60% less than collision.
Why It Matters Texas-specific risks (hail, hurricane, animal strikes on rural roads) make comprehensive often more valuable than collision in dollar-saved-per-premium terms. Many Houston households drop collision before comprehensive when downsizing coverage on aging vehicles.
Related Collision Coverage Full Glass Endorsement Liability-Only
Declarations Page (Dec Page)
The summary front page of your policy listing all named drivers, vehicles, coverage limits, deductibles, endorsements, discounts, and premium. The dec page is your audit document at every renewal. Compare this year's dec page to last year's line by line to find what changed.
Why It Matters The dec page is the only document most drivers ever see. Reading it correctly is the difference between knowing what you own and trusting that someone else read the policy for you. Audit the driver list against current household members. Confirm liability limits match your asset profile.
Charles in Plain English
Two dec pages. Side by side. That is a renewal review.
Related Endorsement Renewal Discount Stack
Deductible
The amount you pay out of pocket before the carrier pays anything on a covered claim. Auto policies typically carry separate deductibles for collision and comprehensive. Common levels: $250, $500, $1,000, $2,500.
Why It Matters Texas Department of Insurance notes deductibles never apply to claims against the at-fault driver's insurance. Increasing collision deductible from $500 to $1,000 typically saves $100 to $200 per year. The right deductible matches household emergency savings, not the lowest available premium.
Related Full Glass Endorsement Claim
Direct Repair Program (DRP)
A network agreement between a carrier and specific body shops at negotiated labor rates. Carriers steer policyholders toward DRP shops because of the discounted rates. Texas Insurance Code Section 1952.301 prohibits insurers from requiring you to use a specific repair facility, but the steering pressure is still real.
Why It Matters DRP shops can be excellent for standard collision work. They are often inadequate for luxury, exotic, or certified-program vehicles (Tesla, Mercedes, BMW, Porsche) where manufacturer-certified repair processes matter. McDade reviews carrier DRP networks against client vehicle profiles.
Charles in Plain English
The carrier picks the rate. The shop picks the bill. You sit between them.
Source: Texas Insurance Code Section 1952.301
Related Aftermarket Parts OEM Parts Texas Insurance Code Section 1952.301
Discount Stack
The combination of premium discounts applied to your policy at any given time. Common Texas auto discounts include multi-policy, multi-vehicle, good driver, defensive driving, good student, paid-in-full, EFT/paperless, anti-theft, occupation-based, loyalty, continuous coverage, and telematics-based.
Why It Matters Many discounts phase out or reset. Good student ages out at college graduation. Defensive driving expires after three years. Multi-policy can vanish if home or auto changes carriers mid-cycle. A discount audit at every renewal recovers premium most clients never knew they were paying.
Charles in Plain English
You did not lose the discount. The renewal stopped giving it to you.
Related Multi-Policy Discount Bundling Renewal
Driver Exclusion
A formal endorsement that names a specific household member and removes coverage when that person operates your vehicle. Excluded drivers have zero coverage. Claims are denied. Vehicle owners can face negligent entrustment liability if they let an excluded driver use the vehicle.
Why It Matters The strategy makes sense for an adult child with their own primary auto policy who never drives the parent's car, a household member with a serious driving record, or a roommate with their own auto policy. The strategy fails when the excluded driver does end up behind the wheel even once.
Charles in Plain English
Excluded means excluded. Even once is too many times.
Related Named Driver Policy Permissive Use Material Misrepresentation
Full Coverage
An informal term referring to the bundle of liability, collision, and comprehensive coverage. Full coverage is not a defined coverage type and varies by carrier. Lenders and lessors typically require full coverage on financed or leased vehicles.
Why It Matters "Full coverage" tells you nothing about whether your specific limits, endorsements, deductibles, and valuation methods are appropriate. McDade audits the components of full coverage rather than relying on the label.
Related Liability Coverage Collision Coverage Comprehensive Coverage Liability-Only
Full Glass Endorsement
An endorsement that waives the comprehensive deductible on glass-only claims (windshield, side windows, rear glass). Per State Farm published guidance, glass claims are generally less likely to result in surcharges than at-fault collision claims.
Why It Matters Modern windshield replacement on vehicles with ADAS systems (cameras, sensors, radar units behind the windshield) routinely costs $1,000 to $2,000+ with calibration. The Full Glass Endorsement typically costs $30 to $60 per year and pays for itself on a single claim.
Related Comprehensive Coverage Deductible Endorsement
Insurance Score
A credit-based score carriers use to predict claim likelihood. Higher scores typically mean lower premiums. Insurance scoring is different from a traditional credit score and uses different data weighting. Texas allows insurance scoring with limits set by Texas Insurance Code.
Why It Matters A coverage lapse, a non-renewal, a recent address change, or a new credit account can affect insurance scoring even when traditional credit score remains strong. Continuous coverage and stable accounts protect insurance score over time.
Related Underwriting Lapse
Insurance Verification
The Texas TexasSure database that electronically verifies auto insurance compliance against vehicle registration. Lapses appear in TexasSure within days. Driving without verified insurance can trigger registration blocks, fines from $175 to $1,000+, and license suspension.
Why It Matters A TexasSure lapse triggers automatic notice from the Texas Department of Public Safety. Resolving the lapse requires uploading new proof of insurance to TexasSure and may require an SR-22 filing depending on circumstances.
Related SR-22 Lapse Minimum Limits (Texas 30/60/25)
Lapse
A break in continuous insurance coverage. Even a one-day lapse can affect insurance score, eligibility for continuous coverage discounts, trigger SR-22 filings, and trigger lender-placed insurance on financed vehicles. Texas TexasSure tracks lapses electronically.
Why It Matters Switching carriers without overlap, missing a payment by a few days, or letting auto-pay fail at a renewal can create a lapse. The premium savings on a switch can disappear if the lapse triggers a continuous coverage discount loss at the new carrier.
Related Cancellation Non-Renewal SR-22 Insurance Score
Liability Coverage
The portion of your auto policy that pays for damages and injuries you cause to others. Has two parts: bodily injury and property damage. Texas requires minimum liability of 30/60/25 per Texas Department of Insurance rules. Liability is the only coverage Texas legally requires.
Why It Matters Liability protects your assets when you cause an accident. State minimums protect the state's mandate, not your assets. For Established Homeowners, McDade typically starts at 100/300/100 with a personal umbrella.
Related Bodily Injury Liability Property Damage Liability Minimum Limits (Texas 30/60/25)
Liability-Only
Coverage that includes only Texas mandatory liability protection without collision or comprehensive. The 10% rule: if combined collision and comprehensive premium exceeds 10% of vehicle ACV, dropping to liability-only deserves consideration. Industry sources reference a vehicle-value threshold around $7,500.
Why It Matters Math is necessary but not sufficient. The vehicle must be paid off, the household must have emergency savings to cover total replacement, the driver must have a clean record, and local risk profile must be acceptable.
Charles in Plain English
Liability-only is right for the right car. Almost never the right answer for the rest of the garage.
Related Full Coverage Collision Coverage Comprehensive Coverage
Material Misrepresentation
A false statement on a policy application that affects the carrier's risk assessment. Per Progressive County Mutual Insurance Company v. Sink, Texas courts require carriers to prove material misrepresentation was intentional before denying coverage based on an unlisted driver.
Why It Matters Texas court precedent provides protection against non-disclosure-based denial. In practice, fighting a claim denial on those grounds takes months and often requires legal representation. The right answer is auditing the household driver roster before a claim ever happens.
Related Additional Driver Discovery (A.D.D.) Permissive Use Driver Exclusion
Medical Payments (Med Pay)
Optional Texas auto coverage that pays medical bills for you and your passengers regardless of fault. Typical limits $1,000 to $10,000 per person. Coordinates with health insurance and Personal Injury Protection.
Why It Matters Med Pay fills coverage gaps when your health insurance has high deductibles or limited network coverage. It also pays for passengers without their own coverage, which avoids friction in social and family driving scenarios.
Related Personal Injury Protection (PIP) Bodily Injury Liability
Minimum Limits (Texas 30/60/25)
The lowest legal auto liability limits in Texas: $30,000 bodily injury per person, $60,000 bodily injury per accident, $25,000 property damage per accident. State minimums are a legal floor, not a financial recommendation.
Why It Matters A serious multi-vehicle accident with multiple injured parties or a single accident with significant medical costs can exhaust 30/60/25 in a single hospital visit. Per Texas DMV data, approximately 20% of Texas drivers are uninsured, making UM/UIM coverage essential alongside higher liability limits.
Charles in Plain English
State minimums protect the state's mandate. Real limits protect your name.
Source: Texas Department of Insurance, Auto Insurance Guide
Related Liability Coverage Bodily Injury Liability Property Damage Liability Uninsured Motorist (UM)
Multi-Policy Discount
A premium reduction for bundling home and auto with the same carrier. Typically saves 10% to 25% on auto premium. Vanishes if home or auto changes carriers mid-cycle, which is one of the largest premium increases most clients experience.
Why It Matters The multi-policy discount is real savings, but only when both policies are well-structured at the same carrier. McDade evaluates whether bundling is the right call based on the specific home and auto needs, not on the discount alone.
Related Bundling Discount Stack
MVR (Motor Vehicle Report)
A driving record pulled from state DMV databases. Lists license status, accidents, traffic violations, suspensions, and points history. Most states maintain 5 years of violations and 3 years of accident history. Some violations like DUI/DWI remain on the record for 10 years or longer.
Why It Matters Carriers pull MVRs at new business and at renewal. Failure to disclose violations or accidents that appear on the MVR can trigger retroactive premium increases or claim denials for material misrepresentation.
Related Underwriting Material Misrepresentation At-Fault Accident
Named Driver Policy
A policy form that covers only specifically listed drivers and excludes all others. Texas does not allow blanket named-driver policies that exclude classes of drivers. Texas does allow specific named driver exclusions in writing on standard policies.
Why It Matters Named driver policies are typically marketed at lower premiums but provide much narrower coverage. A non-listed driver borrowing your car is uncovered. The savings rarely justify the gap for high-end households.
Related Driver Exclusion Permissive Use
Non-Owned Auto Coverage
An endorsement that extends your liability coverage when you drive a vehicle you do not own (rental, borrowed, business). Particularly valuable for households with frequent rental car use or multiple part-time vehicle access scenarios.
Why It Matters Without non-owned auto coverage, your personal auto liability typically does not extend to vehicles you do not own. The rental counter coverage offered at $20-$30 per day fills the gap on rentals but is typically more expensive than a non-owned auto endorsement on your home auto policy.
Related Liability Coverage Endorsement
Non-Renewal
The carrier choosing not to offer you a new policy at renewal. Different from cancellation. Texas Department of Insurance rules require advance notice. Common reasons include claim frequency, multiple at-fault accidents, multiple violations, or carrier withdrawal from a market segment.
Why It Matters A non-renewal can affect insurance scoring with new carriers and can be flagged on insurance applications. Receiving a non-renewal notice is a signal to find a new home in the market quickly.
Related Cancellation Insurance Score Texas Department of Insurance (TDI)
Permissive Use
The legal doctrine extending coverage to non-listed drivers operating your vehicle with your permission. Most insurance follows the car (covers permissive users) but not the driver. State Farm's 2025 Personal Car Policy reinforces that regular drivers must still be disclosed even when permissive use applies.
Why It Matters Permissive use does not eliminate the duty to disclose regular drivers. A friend borrowing your car for a one-time errand is permissive use. A roommate driving your car weekly is a regular driver who should be on the policy.
Source: State Farm Personal Car Policy Notice 153-7582 (June 2025)
Related Material Misrepresentation Named Driver Policy Driver Exclusion
Personal Injury Protection (PIP)
Texas auto coverage that pays medical expenses, lost wages, and essential services for you and your passengers regardless of fault. Texas requires carriers to offer PIP. Standard limit is $2,500 per person. You can decline in writing.
Why It Matters PIP fills coverage gaps when your health insurance has high deductibles, limited network coverage, or no lost-wage protection. PIP is typically inexpensive ($30-$60 per year for $2,500 limit) and pays out without fault disputes.
Related Medical Payments (Med Pay) Bodily Injury Liability
Premium
The annual or monthly amount you pay the carrier for coverage. Auto premium is built from base rate, discounts, surcharges, endorsement costs, vehicle profile, driver profile, and pricing tier eligibility.
Why It Matters Premium is the headline. Coverage is the contract. A lower premium often means a thinner contract underneath. Every cheaper quote is a quieter promise.
Related Discount Stack Deductible Renewal
Property Damage Liability
The portion of your auto liability coverage that pays for property damage you cause to others (their vehicle, fences, buildings, structures). Texas minimum is $25,000 per accident.
Why It Matters A single luxury vehicle accident can exhaust $25,000 in property damage in one repair. A multi-vehicle accident or an accident hitting a building can quickly exceed minimum limits. Established Homeowners typically need $100,000+ in property damage liability.
Related Bodily Injury Liability Liability Coverage Minimum Limits (Texas 30/60/25)
Rental Reimbursement
Coverage that pays for a rental vehicle while yours is in the shop for a covered claim. Allstate sells rental reimbursement as a per-day dollar limit ($30 to $100 per day) up to 30 days. Allstate's coverage description explicitly states: if the rental car costs more than your daily limit, you pay the difference.
Why It Matters On a high-end household with a daily driver in the shop for three weeks, a $30 per day rental limit caps the carrier payout at approximately $900 over 30 days, while a comparable rental for an SUV or luxury vehicle in Houston can run $80 to $150 per day. The structure (per-day vs per-claim) matters more than the topline number.
Charles in Plain English
$30 a day was a fair number in 2010. In 2026 it does not even cover an SUV.
Source: Allstate Rental Reimbursement Coverage (Published Coverage Information)
Related Endorsement Claim
Renewal
The annual or six-month cycle when the carrier offers a new policy term. Renewal is the only window when the carrier reopens the contract. Premium can change. Coverage limits can change. Endorsements can be added or removed. Driver lists can change without notice.
Why It Matters Auto-renewal is the single biggest source of unnoticed coverage erosion. The premium debits the bank account, the dec page goes in a drawer, and the next claim discovers what was actually signed.
Charles in Plain English
The renewal is the only conversation the carrier offers. Have it before you sign.
Related Declarations Page (Dec Page) Endorsement Discount Stack
Want to audit your renewal? See the McDade Auto Insurance Review.
SR-22
A certificate of financial responsibility filed by your carrier with the Texas DMV proving you carry minimum required liability coverage. Required after certain serious driving offenses (DUI, multiple violations, license suspension, or driving without insurance). Typically required for 2 years of continuous coverage.
Why It Matters Not all carriers file SR-22s. Carriers that do typically charge a small filing fee plus higher base premiums during the SR-22 period. A lapse during the SR-22 period restarts the clock.
Related Lapse Minimum Limits (Texas 30/60/25) Insurance Verification
Stated Value
A valuation method where you declare a vehicle value on the policy. Standard policy language pays the lesser of the Stated Value or Actual Cash Value at time of loss. Stated Value functions as a ceiling, not a guarantee.
Why It Matters If you list a 1970 Plymouth Cuda at $80,000 Stated Value and the carrier's adjuster determines the ACV is $60,000 at time of loss, you receive $60,000. Stated Value is rarely the right answer once a client understands what it actually pays.
Charles in Plain English
Stated Value sounds like a promise. It is a ceiling.
Related Agreed Value Actual Cash Value (ACV) Antique Vehicle
Subrogation
The carrier's right to pursue recovery from a third party responsible for a loss after paying your claim. Successful subrogation can return your deductible.
Why It Matters Subrogation is invisible to most drivers but worth understanding. If your carrier successfully subrogates against the at-fault party, you may receive your deductible back as part of the recovery.
Related Claim Deductible At-Fault Accident
Texas Department of Insurance (TDI)
The state regulator overseeing insurance in Texas. TDI publishes consumer guides, handles complaints, regulates carrier conduct, and enforces Texas Insurance Code. tdi.texas.gov is the official portal. Consumer Help Line: 1-800-252-3439.
Why It Matters TDI is the right escalation path for unresolved disputes with a carrier. McDade walks clients through TDI complaints when carrier escalation has failed and the matter requires regulatory attention.
Source: Texas Department of Insurance Official Website
Related Cancellation Non-Renewal Texas Insurance Code Section 1952.301
Texas Insurance Code Section 1952.301
Texas statute governing insurer restrictions and duties regarding motor vehicle repair. Establishes OEM parts preference for vehicles owned 36 months or less, written disclosure requirements for non-OEM parts, and prohibition on requiring specific repair facilities.
Why It Matters The statute provides specific consumer protections at claim time. Most drivers do not know these protections exist. McDade reviews carrier compliance with Section 1952.301 on every disputed repair claim.
Source: Texas Insurance Code Chapter 1952
Related OEM Parts Aftermarket Parts Direct Repair Program (DRP)
Total Loss
A vehicle loss where repair cost exceeds a percentage of the vehicle's ACV. Texas uses the Total Loss Formula. Carriers typically declare total loss when repair plus salvage value exceeds vehicle ACV. The total loss threshold varies by carrier and vehicle.
Why It Matters Total loss settlements are calculated using ACV, Stated Value, or Agreed Value depending on policy form. The valuation method determines whether you receive market value, a ceiling amount, or the agreed amount. Total loss disputes are common on aging vehicles and require documentation of condition and modifications.
Related Actual Cash Value (ACV) Agreed Value Stated Value Gap Insurance
Towing & Roadside Assistance
Optional auto coverage that pays for towing, jumpstart, lockout service, fuel delivery, and tire changes. Some carriers track roadside usage as activity that can affect underwriting. Standalone roadside memberships (AAA, Better World Club) preserve the auto claims-free record.
Why It Matters The carrier roadside coverage is convenient but counts against your activity record at some carriers. A $60 to $100 standalone roadside membership is typically the cleaner choice for drivers who want to preserve carrier claims-free standing.
Related Claim Endorsement
Underinsured Motorist (UIM)
Coverage that applies when the at-fault driver's liability limits are insufficient to cover your damages. UIM steps in beyond the at-fault limit. Texas requires carriers to offer UIM. You can decline in writing.
Why It Matters Many Texas drivers carry only minimum 30/60/25 limits, which often runs out long before a serious injury claim is paid. UIM closes that gap. Without UIM, the responsibility shifts entirely to your own collision and medical coverage.
Charles in Plain English
You can buy the best policy on the road. It does not protect you from the worst driver on it.
Related Uninsured Motorist (UM) Liability Coverage Hit and Run
Uninsured Motorist (UM)
Coverage that applies when the at-fault driver has no insurance or in hit-and-run scenarios. Per Texas DMV data, approximately 20% of Texas drivers are uninsured. Texas requires carriers to offer UM. You can decline in writing.
Why It Matters One in five vehicles you share Texas roads with carries no liability coverage at all. UM coverage means your medical bills, lost wages, and pain and suffering are covered when the responsible party cannot pay. Most clients who declined UM years ago to save premium have no idea they did.
Source: Texas Department of Motor Vehicles, Uninsured Driver Data
Related Underinsured Motorist (UIM) Hit and Run Liability Coverage
Underwriting
The carrier's process of evaluating risk to decide whether to offer a policy and at what price. Inputs include MVR, CLUE history, insurance score, vehicle profile (make, model, year, value), garaging address, prior carrier history, and household composition.
Why It Matters Underwriting decisions made today affect premium and coverage for years. A claim filed strategically (or paid out of pocket strategically) protects underwriting standing. McDade discusses claim and policy decisions with their underwriting consequences in mind.
Related MVR (Motor Vehicle Report) Insurance Score At-Fault Accident
