Auto Driveaway Services: Essential Insurance Coverage In Texas

Texas law requires drivers to have insurance and to be able to show proof of it if requested by a police officer. Auto driveaway services in Texas are no exception to this rule and must have insurance. The most common way to fulfill this financial responsibility is with auto insurance, where drivers pay a small premium in exchange for a greater amount of liability protection.

Liability insurance

In Texas, the minimum liability insurance requirement is known as 30/60/25 coverage. This means that drivers must have at least $30,000 in bodily injury liability coverage per person and $60,000 per accident. Additionally, there must be $25,000 in property damage liability coverage per accident. This coverage will pay for repairs or replacement of the other driver's vehicle and cover their medical expenses if you are at fault in an accident.

While liability insurance is essential, it is important to recognise its limitations. It does not cover your own medical bills, lost wages, pain and suffering, or repair or replacement costs for your vehicle. It also does not provide coverage for towing services or a rental car while your vehicle is being repaired. As such, it is generally recommended to purchase a full-coverage policy to ensure comprehensive protection in the event of an accident.

The average cost of liability insurance in Texas is $80 per month or $960 per year, which is close to the national average. However, it is worth noting that insurance rates can vary based on factors such as age, driving history, credit history, and the type of vehicle.

Texas takes insurance requirements seriously, and there are penalties for driving without valid insurance. Fines can range from $175 to $350 for a first offence, and a second violation can result in higher fines, licence suspension, and even impoundment of your vehicle. Therefore, it is crucial to maintain up-to-date insurance coverage to comply with the law and avoid these penalties.

Collision insurance

It's important to note that collision insurance does not cover damage to another vehicle, medical expenses for you or others, theft or vandalism, collisions with animals, or damage caused by weather events or fallen objects. For protection against these perils, you would need comprehensive coverage.

The cost of collision coverage varies depending on personal factors such as age, gender, marital status, and driving record, as well as details about the vehicle and your location within Texas. On average, TGS Insurance customers in Texas pay $344.85 per year for collision coverage, which is lower than the state's average of $434.46.

When purchasing collision coverage, you will usually need to select a deductible, which is the amount you pay each time you file a claim. Deductibles typically range from $500 to $1,500, with $500 being the most common choice.

Comprehensive insurance

The cost of comprehensive insurance in Texas varies depending on the deductible you choose. With a $1,000 deductible, you can expect to pay around $1,395 per year for comprehensive coverage, which is 159% more than liability-only insurance. If you choose a lower deductible of $500, the cost of comprehensive insurance will be even higher, at 1,661% more than basic coverage.

It's important to note that comprehensive insurance does not cover collision repairs. If you want protection against the costs of car accidents, you'll need to add collision insurance to your policy as well.

When deciding whether to purchase comprehensive insurance, consider the value of your vehicle and the likelihood of non-collision damage. If you have an older car with a low market value, comprehensive insurance may not be worth the additional cost. However, if you have a newer car or live in an area with a high risk of non-collision damage, comprehensive insurance can provide valuable peace of mind and financial protection.

Personal injury protection (PIP) insurance

The minimum PIP coverage offered in Texas is $2,500, but you can increase your coverage to $5,000 or $10,000 if you want additional protection. The cost of PIP insurance varies depending on your location, the amount of coverage, and your driving history.

While health insurance may cover some medical expenses, it typically won't cover lost wages or other costs associated with an accident. PIP offers peace of mind and financial relief while waiting for the outcome of a lawsuit or insurance settlement. It's important to note that PIP only covers losses that occur within three years of an accident, and claims should be filed as soon as possible.

Uninsured/underinsured motorist insurance

In Texas, it is a legal requirement for drivers to have liability coverage on their vehicles. However, not all drivers comply, and according to the Texas Insurance Blog, more than 2.6 million state-registered vehicles (12% of the total) are not matched to an insurance policy. This is where uninsured/underinsured motorist insurance comes in.

This coverage pays for car repairs, rental cars, medical bills, pain and suffering costs, and the replacement of property in your car. It also comes into effect in hit-and-run accidents where the other driver cannot be found. The deductible for this coverage is $250, which is significantly lower than the deductible for collision coverage.

You can usually add uninsured/underinsured coverage in $5,000 increments, and it is recommended to add enough property damage coverage to replace your vehicle if needed. While this coverage is not mandatory, insurance companies are required to offer it, and if you do not want it, you must explicitly decline it in writing.

Uninsured motorist coverage specifically protects you and your property when the at-fault driver does not have car insurance. On the other hand, underinsured motorist coverage comes into play when the at-fault driver has insurance but their liability limits are insufficient to cover all the damages. Both types of coverage include protection for bodily injury and property damage.

In summary, uninsured/underinsured motorist insurance provides valuable peace of mind and financial protection in the event of an accident with an uninsured or underinsured driver. While it may not be mandatory, it is certainly worth considering to ensure you are not left paying for damages and medical expenses that are not your fault.

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