Full Auto Insurance Coverage: What Texans Need To Know

Full coverage auto insurance in Texas is a combination of coverage types that protect your car in most situations. While there is no consensus on what full coverage means, it typically includes liability, collision, and comprehensive coverage. Liability coverage is mandatory in almost all states and covers damages or injuries you cause to another vehicle or person, up to a certain limit. Collision coverage pays for damage to your car, regardless of who caused the accident. Comprehensive coverage pays for damage to your car from events outside of a collision, such as fire, hail, vandalism, or theft. In Texas, full coverage auto insurance also includes personal injury protection (PIP) and uninsured/underinsured motorist (UM/UIM) coverage. PIP covers medical bills and lost wages if you or your passengers are injured in an accident. UM/UIM coverage protects you if you're in an accident with a driver who doesn't have insurance or doesn't have enough insurance to cover your medical bills and car repairs.

Liability coverage

In Texas, you are required to have a minimum of $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. However, the minimum liability limits might not be enough if you cause a multi-vehicle accident or if the other driver's car is totaled. In such cases, you might have to pay the remaining amount out of your pocket, and the other driver could sue you. Therefore, it is recommended that you buy more than the minimum liability coverage to protect yourself.

Liability insurance does not cover your own expenses, such as your medical bills, lost wages, pain and suffering, repair or replacement costs for your vehicle, towing services, or a rental car. To cover these expenses, you would need to purchase additional types of insurance, such as collision coverage, comprehensive coverage, uninsured motorist coverage, medical payments coverage, or personal injury protection.

Collision coverage

In Texas, collision coverage is not mandated by state law. However, if you're leasing or financing your vehicle, your lender may require you to have collision coverage to protect their investment. This coverage will pay for the repairs or replacement of your vehicle, regardless of who is at fault in the accident.

When considering collision coverage, it's important to evaluate your personal financial situation. If you couldn't afford to pay for repairs or a replacement vehicle out of pocket, collision coverage can provide peace of mind. Additionally, if your vehicle is brand new or still has a significant value, collision coverage can help cover the cost of expensive repairs or replacement.

It's worth noting that collision coverage has some exclusions. It doesn't apply to collisions with animals, as these are typically covered under comprehensive coverage. Similarly, injuries or damage caused to another driver and their vehicle are covered under your liability coverage. Damage to your vehicle caused by events outside your control, such as a falling tree, is also excluded from collision coverage and falls under comprehensive coverage.

Comprehensive coverage

The cost of comprehensive coverage varies depending on personal factors such as age, gender, marital status, driving record, vehicle details, and location within the state. In Texas, the average cost of comprehensive coverage is $183.57 per year, but prices can range from under $150 to over $250.

When deciding whether to purchase comprehensive coverage, consider the value of your vehicle, your driving habits, and your financial situation. If your vehicle is damaged or totaled, comprehensive coverage can help you avoid the financial burden of paying for repairs or replacement out of pocket.

Personal injury protection (PIP)

PIP covers reasonable medical costs, including necessary surgeries, X-rays, dental or eye treatments, medical procedures, prosthetic devices, and professional nursing. It also covers rehabilitation therapy, lost income resulting from the accident, and replacement of necessary services provided by the injured party, such as family care or household maintenance, if the injured person does not work outside the home.

PIP provides compensation for medical bills and other costs associated with car accidents, regardless of who is at fault. This means that if you are in an accident, you can file a claim with your own insurance company, and you can reasonably expect a prompt payout shortly after. This can be especially helpful for families who are in financial need and cannot wait for the outcome of litigation or a third-party claim.

While PIP can provide valuable financial protection, it is important to note that it may not cover all the costs associated with a car accident. If you have been injured and are collecting money from your PIP coverage, you may still need to file a personal injury lawsuit against the at-fault driver to recover other damages.

Uninsured/underinsured motorist coverage

In Texas, you can typically add uninsured/underinsured coverage in $5,000 increments. It's recommended that you add enough property damage coverage to replace your vehicle if it's totaled.

Uninsured motorist coverage specifically protects you and your property after an accident where the at-fault driver does not have car insurance. Underinsured motorist coverage, on the other hand, protects you when the at-fault driver has insurance but not enough to cover all the damage. Underinsured motorist coverage also comes into play when the at-fault driver's liability limits are too low to cover all the damages.

The deductible for uninsured/underinsured coverage in Texas is $250, which is typically much lower than the deductible for collision coverage.

Frequently asked questions