If you operate a motor vehicle in the state of Texas, you are required to provide insurance in case of an accident. Texas auto insurance law specifies that you must have adequate coverage to pay for any damages that are a direct result of your driving negligence.
The amount of insurance that you purchase is called coverage, and Texas law specifies a certain minimum coverage that you must purchase. First, you must purchase $20,000 minimum coverage for every injured person, a total of $40,000 to pay for all of those who have been hurt in an accident, and $15,000 minimum to cover property damage. This is the very basic minimum coverage that you may purchase under Texas auto insurance laws and it is commonly referred to as 20/40/15 coverage.
When you are choosing Texas auto insurance, be sure to discuss with your insurance agent whether you should choose 20/40/15 coverage or another plan. You should realize that if you are in an accident, and damages are more than your coverage provides, you will be held liable or responsible for the exceeding damages. Therefore, consider carefully the amount of coverage you purchase. When you purchase a Texas insurance policy, the first page will be called a Declarations Page. This page contains all of the details regarding your insurance policy and coverage so make sure that you read and understand it thoroughly. Also, you will receive a Consumer Bill of Rights when you purchase your policy. Reading through these rights will help you understand your policy and Texas auto insurance laws in greater detail.
There are eight different types of Texas auto insurance that you may purchase.
Personal Injury Protection
Personal Injury Protection is also referred to as PIP Coverage. It covers your family members, you, and passengers regardless of who was at fault for an accident.
Medical Payments Coverage
Covers your family, yourself, and passengers regardless of who is at fault for the accident. Medical Payments Coverage pays for medical and funeral costs. Be sure to discuss coverage specifics with you insurance agent.
Liability coverage pays for medical and funeral costs, car repairs, auto rentals, and punitive damages. Speak with your insurance agent for coverage specifics.
Uninsured Underinsured Motorist Coverage
Uninsured/Underinsured Motorist pays for bodily injury, property damage, auto repairs, and rentals. Ask your insurance agent for coverage details.
Collision pays for the cost of repairs or replacing your car due to an accident. Your insurance agent will provide specific details.
Comprehensive pays for the cost of physical damages that aren’t covered under Collision Coverage. These include repair or replacement of your vehicle due to theft, fire, or vandalism. See your insurance agent for specific details regarding Comprehensive Coverage.
Rental Reimbursement Coverage
Rental Reimbursement pays for a specified amount to cover the costs of a rental car. Your insurance agent will provide further information regarding Rental Reimbursement Coverage. Towing and Labor Coverage Towing and Labor Coverage covers the cost of towing fees and labor fees due to your car’s inability to operate at the scene of your car’s breakdown.