In Texas, drivers that take out car insurance with liability coverage need to be able to cover for potential damage caused to another motorist. This is relevant for understanding Texas car insurance and has its specific name: the 30/60/25 coverage rule. Under this rule, the minimum liability coverage threshold stands at $30,000 per person injured, $60,000 for the entire accident, and $25,000 per item of property damaged per accident.
#2 Auto insurance does not cover for self-damage
When understanding Texas car insurance, it’s important to note that the minimum liability coverage threshold described above only applies to damage that the covered driver causes to others. Damage done to one’s property (i.e. the vehicle, in this scenario), or the cost of personal liabilities such as sustained injuries, are not covered under auto insurance in Texas. In order to have these costs covered, a driver needs to consider other types of insurance, such as collision coverage, personal injury protection, or uninsured/underinsured motorist coverage.
#3 All drivers in Texas are required to have car insurance
Another key aspect to understanding Texas car insurance is that, under state laws, all drivers need to cover the costs of any accidents they might cause. Since the costs can run very high, motorists are required to provide proof they can cover for these expenses before they are incurred. Under the currently enforced laws of the state of Texas, a driver can provide such proof by demonstrating they have access to the required cash. In other words, if you can prove you’ve got the 30/60/25 grand described above, you are good to go. However, most drivers simply choose to buy car liability insurance.
#4 Collision coverage takes care of your car
One point that drivers from other states might have difficulties with, when understanding Texas car insurance, is the notion of collision coverage. Collision coverage is the type of auto insurance that drivers opt for, in the event that they want coverage for the costs incurred for repairing their own car after an accident. If the driver opts for a comprehensive type of coverage, they will be insured against all kinds of damage, not just that resulting from a car crash. They can be insured against vandalism, fires, damage caused by weather conditions, and even theft – in this scenario, a comprehensive auto insurance collision coverage policy can help you replace your stolen vehicle. Vehicle owners who are still paying for their cars will be required by their lenders to hold collision coverage, as well as comprehensive coverage.
#5 Pay for your own medical care with PIP
Personal Injury Protection (PIP) will cover all the ensuing medical and funeral costs that result from a car accident, but will also cover the expenses of a caregiver, plus 80 per cent of the income deficit resulting from the accident. Alternatively, you can opt for medical payments coverage, which will only pay for medical and funeral expenses. Both types of coverage apply to all the passengers of the vehicle, irrespective of who caused the car crash.