Texas, like every other state, has car insurance requirements. Because Texas is a fault state – in relation to personal injury law – all drivers are required to carry liability insurance. Your liability insurance policy is intended to compensate anyone whom you are responsible for injuring in a car accident, but it does not cover the injuries you yourself suffer. Car insurance is often a complicated issue; read on to learn more.
Texas and Minimum Insurance Requirements
Drivers in Texas are required to carry liability insurance, and certain minimums apply, including:
- Bodily injury liability of $30,000 per person and up to $60,000 per accident
- Property damage liability of $25,000
Bodily injury liability covers the injured party’s medical costs, lost wages, and physical and emotional pain and suffering. Property damage liability, on the other hand, covers any damage to the other person’s car or to any other property that is involved.
In order to register your car in Texas, you will need to show proof of minimum coverage. Further, it is important to keep proof of coverage in your vehicle in case you are ever pulled over by the police (who will want to make sure you carry the necessary coverage).
If you are injured by another driver’s negligence in Texas, his or her insurance will compensate you for your damages. There are, however, certain circumstances in which this coverage may be inadequate. For example, some motorists drive without liability insurance, and some drive with too little coverage. In fact, you may want to consider carrying additional coverage to better protect yourself in case of a serious accident, including:
- Uninsured motorist Insurance – Uninsured motorist insurance does just what it says, covers you if the at-fault driver has no liability insurance.
- Underinsured Motorist Coverage – Even if the at-fault driver’s insurance policy meets the minimum requirements, it may not fully compensate you for the damages you have suffered. The fact is that a serious accident can quickly outpace $30,000 in damages, and underinsured motorist coverage kicks in once the other driver’s maximum coverage is met.
- Collision Coverage – If your car is damaged in an accident, this is no-fault coverage that applies to your repair bills.
- Comprehensive Coverage – Comprehensive coverage is also no-fault insurance, and it is intended to reimburse you for vehicle repairs that are related to something other than a car accident, such as a hail storm.
While you probably do not need all of this coverage, you should carefully consider the uninsured and underinsured options.