What Type of Auto Insurance Coverage Should You Have in Texas?

Originally published by Harron Law.

One of the primary requirements of Texas law involving auto accidents is that the driver who caused the accident must pay. To meet the minimum requirements of this law, each driver must purchase at least the minimum amount of coverage. This liability limit sits at $30,000 for each injured person, $60,000 per each accident, and $25,000 for any property damage done to the vehicle. This is the most basic of coverage and is oftentimes referred to as 30/60/25 coverage. This minimum amount of insurance doesn’t cover everything, which is why it’s essential that you understand all available types of auto insurance coverage and which ones are best for you.

Liability and Collision Coverage
The most important types of auto insurance to have are liability coverage and collision coverage. When purchasing basic liability coverage, this satisfies the minimum requirements by law in the state of Texas. When a person has been covered by liability insurance, that person will be protected if they cause a car accident.

This insurance will pay for a wide range of expenses that the other person involved in the accident requires. These include everything from lost wages and medical costs to car repair and car rental costs. If someone sues you, this insurance will cover your defense costs and attorney fees. This insurance policy extends to your family, other people driving in your vehicle, and family members that attend college or school away from home.

As for collision coverage, this type of insurance covers the cost of replacing or repairing your own vehicle following an accident. The amount paid to you can be the vehicle’s actual cash value, the amount displayed on the declaration page, or the exact amount that the repair or replacement costs. This policy covers you and your family members.

Comprehensive Coverage
Comprehensive coverage is basically designed to protect your vehicle from all other types of damage that don’t have to do with a collision. This can be a very smart pickup on your insurance policy, as it protects your vehicle and the possessions inside if vandalism or theft occurs. In some instances, this coverage will even extend to a rental car while your vehicle is being repaired. The claim is basically limited to the actual cash value of the vehicle.

Medical Payments and Personal Injury Protection Coverage
Medical payments coverage pays for any medical or funeral bills that occur from an accident. This policy covers you, any family members, other passengers, additional injured people, and even pedestrians and bicyclists. This coverage isn’t based on who caused the accident.

As for personal injury protection coverage, it’s similar in nature to medical payments coverage but also provides you with 80 percent of lost income and the total costs of hiring a caregiver. The insurance company you sign with will automatically provide you with $2,500 worth of PIP coverage.

Uninsured/Underinsured Motorist Coverage
This type of coverage protects you if the auto accident was caused by an uninsured or underinsured individual. This also applies to hit-and-run drivers. Any damage done to the vehicle is also covered, but a deductible may have to be paid before any additional coverage is provided.

Towing/Labor and Rental Reimbursement Coverage
There are times when you will need to have your car towed or a flat tire changed. In any event, this policy covers all towing and labor costs associated with such tasks. Rental reimbursement coverage applies to a rental car if your vehicle is being repaired at the time. This coverage provides you with a set daily amount to cover the rental car.

When you operate a vehicle, it’s essential that you have a policy that includes both collision and liability coverage. PIP coverage and uninsured motorist coverage are also necessary. Out of the remaining coverage types, simply choose what you think is best for you. A policy that incorporates most of the coverage types is your best bet. If you’re ever in a car accident in Texas, The Law Office of Eric Harron will assist you in identifying your available legal options.

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