Understanding Auto Insurance Coverage In Texas: A Guide

Auto insurance is a necessity for all drivers in Texas, and the state has specific requirements that drivers must meet to stay on the right side of the law. Understanding auto insurance coverage in Texas is crucial for vehicle owners to protect themselves and others on the road. Texas operates under an at-fault system, meaning the driver deemed responsible for an accident is liable for the resulting damages and must file a claim with their insurance company.

Minimum coverage requirements

Texas law requires all drivers to have adequate car insurance. The minimum insurance coverages are $30,000 per injured person, up to $60,000 per accident, and $25,000 for property damage. This is known as 30/60/25 coverage.

These requirements are the bare minimums and may not cover all the costs of recovery and repairs if you are injured in an accident. It's important to consider purchasing additional coverage to protect yourself financially.

Texas requires drivers to show proof of insurance when requested by police. This can be done by presenting your insurance card, which you should keep in your glove compartment.

In addition to the minimum liability coverage, Texas drivers are encouraged to consider adding the following types of coverage to their policy:

• Collision coverage: This pays for damage to your car in an accident. If you are still paying off your car, your lender will require this coverage.
• Comprehensive coverage: This covers damage to your car from incidents other than a collision, such as fire, hail, vandalism, or theft.
• Uninsured/Underinsured Motorist coverage: This protects you if you are in an accident with a driver who doesn't have insurance or doesn't have enough insurance to cover the damages.
• Medical Payments coverage: This pays for your and your passengers' medical bills, regardless of who is at fault in the accident.
• Personal Injury Protection (PIP) coverage: This is similar to medical payments coverage but also covers lost wages and other non-medical costs. All auto policies in Texas include PIP coverage unless you opt out in writing.

Collision coverage

Accidents covered by collision insurance include accidents involving another vehicle that you cause, collisions with objects such as a telephone pole or tree, and single-vehicle accidents such as rolling your car. Collision insurance also covers damage caused by road hazards, such as potholes.

The premium you pay for collision coverage varies from driver to driver and policy to policy, based on numerous factors. Personal details such as your age, gender, marital status, and driving record factor into the cost of an auto policy, as do details about the vehicle you drive and where you live within your state.

In Texas, if you are collecting under your own insurance coverage and your vehicle is considered a "total loss," your insurance company will only pay the value of the vehicle and take possession of it. On the other hand, if you are collecting under the other driver's liability insurance, the legal definition of a "total loss" is that the property is not repairable.

Comprehensive coverage

The average cost of comprehensive coverage among TGS Insurance customers in the state of Texas is $183.57 per year, with ranges from under $150 to over $250. The premium you pay for comprehensive coverage varies from driver to driver and policy to policy based on numerous factors, including personal details such as your age, gender, marital status, and driving record, as well as details about the vehicle you drive and where you live within your state.

When deciding whether to buy comprehensive coverage, consider the value of your vehicle, your driving habits, and your current financial situation. If your vehicle is damaged or totaled, do you have the money to pay for the repairs or replacement out of pocket? If not, comprehensive coverage can help avoid a financial headache.

Uninsured/underinsured motorist coverage

In Texas, around 8-12% of drivers are uninsured, and the state has an estimated 2.6 million state-registered vehicles without an insurance policy. This means there is a 1 in 7 chance that the other driver won't have coverage if you get into an accident.

Uninsured motorist (UM) coverage protects you and your property after an accident where the at-fault driver does not have car insurance. It also covers hit-and-run accidents where the driver cannot be found. Underinsured motorist (UIM) coverage, on the other hand, protects you when the at-fault driver has insurance but not enough to cover all the damages.

There are two types of UM/UIM coverage:

• Bodily Injury (BI): This covers medical bills for you and your passengers, as well as lost wages, physical pain, disfigurement, and permanent or partial disability.
• Property Damage (PD): This covers repairs to your vehicle, a rental car, and damage to items in your car, such as a GPS device.

The deductible for UM/UIM property damage insurance is $250. You can usually add more coverage in $5,000 increments, and it is recommended to add enough property damage coverage to replace your vehicle if needed.

While UM/UIM coverage is not mandatory in Texas, insurance companies are required to offer it when you purchase auto insurance. If you do not want it, you must explicitly decline it in writing.

Overall, uninsured/underinsured motorist coverage can provide valuable protection and peace of mind, ensuring that you are not stuck paying for medical expenses or vehicle repairs that are not your fault.

Liability coverage

Texas law requires drivers to show proof that they can pay for any accidents they cause. Most drivers do this by purchasing auto liability insurance. Liability insurance covers the cost of damages and medical expenses for another party in a car accident for which you are at fault. It pays to repair or replace the other driver's car and covers other people's medical expenses.

In Texas, you must have at least $30,000 in liability coverage for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25.

The minimum liability limits might be too low if you cause a multi-vehicle accident or the other driver's car is totaled. If you don't have enough liability coverage to pay for the damages and injuries you cause, you might have to pay the rest out of your own pocket. The other driver could sue you. Therefore, it is recommended that you buy more than the minimum limits to protect yourself.

Liability insurance does not pay to repair or replace your car or to treat your injuries. For this, you will need to purchase additional coverage, such as collision coverage or comprehensive coverage.

Frequently asked questions