I recently did some digging to try to save some money on my car insurance. My car is older and I figured I didn’t need the same coverage that I would if it was a newer, more valuable car. The thing that interested me the most is – what is the minimum coverage I could get away with and still cover myself in case of an accident. Here’s what I found.
Do you have car insurance?
I’m sure you do. Texas laws require you to have insurance before you can drive. However, does it cover all scenarios? Most car insurance, for instance, may not be comprehensive, and not cover different costs in the case of an automobile accident. If you do not have the right car insurance, you may end up reimbursing more than you may have expected.
As a consumer, you have a choice of different insurances. For instance, you may insure yourself against costs to any third party, but not your vehicle.
It’s what most vehicle owners in Texas do since Texas laws state that the motorist who was responsible for the crash needs to pay. You need to buy a minimum amount of coverage to be able to protect yourself since the responsibility limitation sits at $30,000 for every wounded individual, $60,000 per crash, and $25,000 for any property destruction done to the car.
At times called the 30/60/25 cover, your auto insurance will make payments up to those limits to the other party in case of an accident. Do note that you may need a higher limit. Many new cars, for instance, cost more than $25,000, and you need to pay the difference for anything more than that amount.
Proof of Indemnity
Any police officer who pulls you over will request to see your insurance alongside your permit and registration.
When you buy your vehicle insurance policy, your insurance firm will send you your ID cards. Place these in your car so that you can access them easily.
We will take a look at the type of vehicle insurance coverage that you need in Texas below.
Liability and Collision Coverage
You cannot do without a liability and collision coverage in Texas.
It shields you from the financial consequences of a vehicle crash. The liability insurance will reimburse for a broad range of outlays, including everything from lost remunerations and medical expenses to vehicle repairing and lease costs. If someone prosecutes you, the indemnity will cover your lawyer fees.
The collision coverage, on the other hand, covers the expenses of repairing your vehicle following a crash. The amount reimbursed to you can be as high as the car’s real value, depending on the policy you’ve chosen.
Comprehensive Coverage
If you’re looking to cover your car from all liabilities and damages, including thefts and vandalism, it’s what you’re looking at. In some cases, this coverage can even apply to a leased car, which you are using while repairing the car you’ve taken. You can only insure an amount that equivalent to the value of your vehicle.
Personal Indemnity Coverage
The cover helps you recover money for any funeral or medical charges that happen from a collision. The policy protects you, your family, commuters, bikers, pedestrians, and other wounded individuals, and is not based on who occasioned the mishap.
Additionally, it offers you eighty percent of lost earnings and expenses of engaging a caregiver. Most insurance firms you register with will automatically provide you $2,500 worth of personal injury protection coverage.
Uninsured Or Underinsured Driver Protection
The coverage shields you if an under-insured or uninsured person caused the car crash, and is also applicable to hit and run scenarios. Any damage done to the car is also covered.
Towing And Car Lease Coverage
At times, you may need to call in the towing company to have your vehicle pulled. It could be a flat tire or a problem with the car’s engine.
In either case, you wouldn’t like the bill. With towing coverage, you wouldn’t have to worry about it. The lease payment coverage, on the other hand, is for situations when you are driving a leased vehicle. The protection offers you a fixed daily sum to cover the leased vehicle.
Which is the Right Vehicle Insurance Coverage in Texas?
While the liability and collision coverage is often the most expensive option out there, if you have an expensive vehicle, drive on the roads frequently, and are looking for complete indemnity, it’s something you wouldn’t want to think about twice. Covering everything from accident costs to liabilities, it’s your one-stop solution.
