Car Insurance Requirements

The financial toll of a car wreck can quickly exceed the amount a driver is able to pay out-of-pocket. Car insurance eases that burden and provides financial stability for both the driver and the car crash victim. Therefore, most Texas drivers purchase car insurance to protect themselves and anyone who suffers an injury in a car wreck they cause.

Minimum Car Insurance Coverage in Texas

If you purchase car insurance in Texas to meet the state’s financial responsibility law, the state requires that your policy includes the following coverage:

  • $30,000 for each injured person
  • $60,000 for each crash
  • $25,000 for property damage from a crash

However, these amounts could be insufficient to fully compensate anyone who is hurt in a wreck where you're at fault. It's also important to remember that liability insurance doesn't cover any of your own expenses after a crash. For these reasons, you may need to purchase higher amounts of liability insurance and additional insurance to protect yourself.

Optional Car Insurance Coverage in Texas

Along with liability insurance, you might consider purchasing the following types of policy options:

  • Collision. If you have an auto loan, then your lender will likely require collision coverage. It helps pay for repairs to your car after a crash.
  • Comprehensive. An auto loan lender may also mandate that you have a comprehensive policy, which covers the cost of damage to your car if it's lost, or damaged by something other than a collision.
  • Medical Payments. This policy pays for the medical bills, and funeral bills, if applicable, for you, your family members, and passengers in your car affected by the crash.
  • Personal Injury Protection (PIP). This covers medical bill, a percentage of lost income, and the cost of a caregiver for you, your family members, and passengers in your car, regardless of who caused the crash. PIP is automatically offered in your overall coverage, so if you don't want it, your rejection must be provided in writing.
  • Uninsured/Underinsured Motorist. This insurance protects you, your family members, and passengers in your car if one of three things happen:
    • You're hurt in a hit and run crash
    • You're injured by a driver who doesn't have insurance and who cannot pay for your recovery expenses
    • Your wreck was caused by a motorist who doesn't have enough insurance to cover the costs of your injuries.

This is valuable insurance that could prevent you from incurring all of these costs, and protect you from significant financial harm. Like PIP coverage, insurance companies are required to offer you uninsured and underinsured motorist coverage. If you don't want this coverage, you must reject it in writing.

  • Towing and Labor. You may choose to purchase this policy option to handle these costs after a crash.
  • Rental Car Reimbursement. This is also a handy option to have in case your vehicle is out of commission for a while.

When deciding on auto insurance, it's important to consider just how a potential crash could impact your financial future, and purchase the right amount of insurance to protect you from financial hardship or ruin. This may need to be an annual review.

Keep in mind that you also need proof of current insurance when registering or renewing your vehicle with the Texas Department of Motor Vehicles, or renewing your driver's license. You also must have proof of insurance prior to your crash. Whatever policy you have at the time of the collision is the coverage used for expenses.

Crash Recovery Disputes Are Common With Insurance

Insurance companies are in business to make money. They maximize their profits by paying claimants the least amount of money possible. In order to protect your rights, work with an experienced car crash lawyer who knows how to negotiate with insurance companies and can protect your rights in court, if necessary.

To learn more about how we can assist you, please reach out to us through the online contact form, or call us today to request a free case review.

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