How car insurance works in Texas
Texas state law requires that you purchase and maintain a minimum of liability auto insurance for your vehicle. As a result, if you’re involved in a car accident and you are at fault, your liability insurance provides coverage for any injuries and property repairs for the other party. Moreover, Texas law requires you to have at least $30,000 of coverage for injuries per person and up to a total of $60,000 per accident. In addition, you must have coverage for up to 25,000 for property damage. In other words, this is the 30/60/25 coverage.
But there’s more to car insurance than just that. In short, the best car insurance policy is the one that will also cover repair costs for your own car if it’s been involved in an accident. And it would also cover your medical expenses and more.
At Argo Texas Group we offer you a wide array of auto insurance coverage to choose from. Most importantly, we work with the best insurance companies in the country. So check out our guide below and find out how the various types of insurance work.
Buying more liability coverage for your car insurance
Let’s say you cause a multi-vehicle accident or you total the other driver’s car. Subsequently, the minimum liability limits might be too low. As a result, you might have to pay the rest out of your own pocket. That is what happens if you don’t have enough liability coverage to pay for the damages and injuries you cause. Moreover, the other driver could sue you. So it’s a good idea to buy more liability coverage than the minimum limit that the law requires.
Collision coverage pays to repair or replace your own car after an accident. And it pays no matter if you or the other party caused the accident. Collision coverage pays for damage from the collision with another vehicle. Furthermore, it pays if your car hits an object, or your car rolls over. As a result, if you financed or leased your car and it’s not yet paid off, your lender will usually require you to get this coverage.
Comprehensive (other than collision) coverage
This type of coverage pays if your car is stolen. In addition, it also pays if something other than a collision with another vehicle or object damages your car. For example, some covered perils are: fire, vandalism, and collision with an animal.
Moreover, if you cause an accident, or another unpredictable situation causes damage to your vehicle, Collision & Comprehensive provide full protection for your vehicle. Comprehensive coverage on a car insurance policy may also help in other cases. For example, it can help repair or replace your windshield if it cracks or if a rock shatters it.
Personal Injury Protection insurance (PIP)
Personal Injury Protection (PIP) Insurance pays for the medical/hospital bills, funeral, and/or lost wages and other nonmedical costs. And keep in mind, all car insurance policies in Texas include PIP coverage. As a result, if you don’t want PIP coverage, you must communicate this to the company in writing.
Medical payments coverage
Medical payments coverage will pay for your and your passengers’ medical bills. In addition, it pays if you’re hurt while in someone else’s car or while walking or biking.
Uninsured/underinsured motorist coverage
This type of coverage pays if you’re the victim of a hit-and-run accident. Furthermore, let’s say someone hits you and they don’t have insurance. Or they don’t have enough coverage to pay your medical and car repair bills. Your uninsured/underinsured motorist coverage will pay in this case too. Insurance companies must offer you this coverage. And if you don’t want it, you must communicate this to the company in writing.
Towing and labor coverage
If your car is impossible to drive, this type of coverage pays to tow your car. In addition, it pays for labor to change a flat tire or jump-start your battery.
Rental reimbursement coverage
This type of coverage pays for a car rental if yours is stolen or being repaired after an accident. And some policies will also pay for taxis or ride-hailing services.
SR-22 vs car insurance
An SR-22 is a Financial Responsibility Insurance Certificate. This is required by the Texas Transportation Code Chapter 601 to verify that you have liability insurance.
People often mistakenly refer to the SR-22 certificate as “SR-22 insurance”. However, an SR-22 is not insurance. It is just a document from your insurance company. This document proves you have the liability coverage on your car insurance policy. In addition, you must file this document if:
- you’re convicted for a DUI or DWI
- you have serious and/or repeat traffic offenses
- you were in a car accident, it was your fault, and you didn’t have car insurance
- your driver’s license was suspended or revoked