Texas Full Coverage Auto Insurance: What You Need To Know

Full coverage auto insurance in Texas is a combination of coverage types that protect your car in most situations. While the term full coverage is not an actual insurance product, it typically includes liability, collision, and comprehensive coverage. Liability coverage is mandatory in Texas and includes $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, and $25,000 in property damage liability. Collision coverage pays for fixing crash damage to your car, regardless of who caused the accident. Comprehensive coverage is for sudden damage to your car that is not from a collision, such as theft, fire, or flood. In Texas, full coverage car insurance also includes personal injury protection (PIP) and uninsured/underinsured motorist (UM/UIM) coverage.

Liability coverage

In Texas, liability insurance is a legal requirement for drivers. It covers the cost of damages and injuries to other vehicles and their drivers in the event of an accident where you are at fault. This includes medical expenses and repair costs.

The minimum amount of liability coverage required by Texas state law is $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.

It is important to note that liability insurance does not cover your own expenses, such as your medical bills, lost wages, or pain and suffering. It also does not cover repair or replacement costs for your vehicle, towing services, or a rental car. Therefore, it is recommended to purchase a full-coverage policy that includes additional types of insurance to ensure you and your passengers are fully protected.

When deciding on liability coverage, consider the fact that car prices and medical costs are high, and the minimum coverage may not be sufficient if you are at fault in an accident. You may be sued by other drivers to collect the difference. Thus, it is advisable to purchase more than the minimum liability limits to protect yourself financially.

Collision coverage

When deciding whether to opt for collision coverage, consider the value of your vehicle. If it is brand new or still worth a significant amount, collision coverage can help with expensive repairs or replacements. Additionally, if you cannot afford to pay for repairs or a replacement vehicle out of pocket, collision coverage can provide peace of mind.

On the other hand, if you own your vehicle outright and choose not to carry collision coverage, you will be responsible for any repair or replacement costs if you are involved in an accident. In this case, the other driver's liability coverage may pay for the damage if they are found to be at fault.

Comprehensive coverage

It is important to note that even with full coverage insurance, there are still situations that may not be covered. For example, medical expenses for you and your passengers are not typically covered by liability, collision, or comprehensive coverage. To ensure you have the protection you need, it is recommended to review your policy or consult with your insurance agent to understand the specific coverages included in your full coverage insurance.

Personal Injury Protection (PIP)

In Texas, insurance companies are mandated by law to offer a minimum of $2,500 of PIP coverage when selling automobile liability policies. You can increase this coverage to $5,000 or $10,000 if you wish. While it is not mandatory to purchase PIP insurance in Texas, you must submit a written waiver to decline the coverage.

PIP is beneficial as it provides quick financial relief for medical bills and lost earnings after an accident, without having to wait for the outcome of a lawsuit or insurance settlement. It also covers situations where you are hit by a driver who flees the scene (hit-and-run) or a driver who does not have the legally required insurance (uninsured or underinsured drivers).

If you already have health insurance, you may not need PIP. However, it is important to note that health insurance policies often do not cover lost wages or certain services that PIP would reimburse. Therefore, it is recommended to consider your health insurance deductible and out-of-pocket maximums when deciding whether to include PIP in your auto insurance policy.

Uninsured/underinsured motorist coverage

This type of coverage is especially important if you are in a hit-and-run accident, as it will cover your damages when the other driver cannot be found. It can also help if you need long-term medical care or are unable to work after an accident, as your health plan may not cover these costs.

While it is not mandatory, insurance companies in Texas are required to offer uninsured/underinsured motorist coverage, and if you do not want it, you must decline it in writing. Considering the financial protection it offers, it is worth considering adding this coverage to your policy for peace of mind.

Frequently asked questions