Auto insurance protects you financially in the event that you are injured in an accident or injure another person. Depending on the type of coverage you have, it can help pay for medical bills and property damage so you aren’t left with absurd amounts of out-of-pocket expenses.
Each state has its own laws regarding insurance requirements. Below, we discuss the insurance requirements for drivers in Texas.
Requirements in Texas
At minimum, Texas law requires drivers to have the following auto insurance coverage:
30/60/25 Liability Coverage
This type of coverage pays to repair the other driver’s car if you were the one responsible for the accident. It will also pay for the other driver’s (and their passenger’s) medical bills and other expenses. You must carry at least $30,000 in Bodily Injury (BI) coverage per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage.
When you buy an auto insurance policy, your insurance company will send you a proof-of-insurance card. It is recommended that you carry this card with you or in your vehicle, as you must show it when you:
are asked for it by a police officer
have an accident
register your car or renew your registration
get or renew your driver’s license
have your car inspected
The 8 Types of Coverage
Keep in mind that the required liability coverage will only cover the other driver’s damages, not yours. But, what if you also sustain damages in an accident? The following types of coverage can be added to your policy to better protect you financially in the aftermath of an accident:
1. Liability Coverage
We already discussed the minimum requirements for this coverage in Texas. The reality is that the minimum 30/60/25 coverage is not nearly enough to cover damages in most cases, such as if you cause a multi-vehicle accident or the other driver’s vehicle is towed.
2. Collision Coverage
This will pay to repair or replace your car after an accident.
3. Comprehensive Coverage
This coverage will pay for damage caused by something other than a collision, such as if your car is stolen or damaged by fire, flood, or vandalism.
4. Medical Payments Coverage
This will pay for and your passengers’ medical bills in the event of an accident. It also pays if you are hurt while riding in someone’s car or while walking or biking.
5. Personal Injury Protection (PIP) Coverage
PIP is similar to medical payments coverage because it will pay for your and your passengers’ medical bills. But it will also pay for things like lost wages and nonmedical costs. All auto policies in Texas will include PIP coverage. If you don’t want it, you must tell the insurance company in writing.
6. Uninsured/Underinsured Motorist Coverage
This coverage will cover your damages if you’re hit by someone who doesn’t have insurance or whose insurance coverage is not enough to pay your medical and repair bills. It can also be applied if you’re involved in a hit-and-run accident. Insurance companies are required to offer you this coverage. If you don’t want it, you must also tell them in writing.
7. Towing and Labor Coverage
If your car can’t be driven, this will pay to have your car towed or for the labor to change a flat tire or jump-start your battery.
8. Rental Reimbursement Coverage
This pays for your rental car if yours is stolen or being repaired after an accident.
When it comes to car accidents, no one can know what one will occur. Adding additional types of coverage will mean higher monthly rates. However, it’s better to have insurance and not need it than need it and not have it. This way, you are not left with out-of-pocket expenses you can’t afford to pay.
Injured in an Accident? Contact Our Firm Today!
If you or a loved one has been injured in a car accident, our firm is here to help you during these incredibly difficult times. Determining what coverage applies to your accident can be tricky, especially when you’re going up alone against large insurance companies.
Our seasoned San Antonio personal injury attorneys are here to provide you with effective and caring legal representation so you obtain the compensation you need to recover physically and emotionally.