The law in Texas says that all drivers must have at least liability insurance. But there are a lot of other kinds of car insurance. Most insurance companies in Texas will offer you these main types of coverage to choose from.
Coverage for Medical Payments
This kind of insurance pays for medical bills and funeral costs after an accident, even if the victim was walking or riding a bike. It covers you, your family, and everyone else in your car, no matter who was at fault for the accident. It's a good idea to add this coverage to your auto insurance because many drivers still don't have it. All drivers in Texas are required to have insurance, but you don't want to count on it if you or someone you care about gets hurt.
Coverage for Personal Injury Protection (PIP)
This type of insurance is the same as medical payments insurance, but it also covers 80 percent of an injured person's lost income and the cost of hiring a caregiver. It is a good thing to add to your car insurance. In fact, Texas law says that insurance companies have to offer you $2,500 in PIP, and if you don't want it, you have to turn it down in writing.
Coverage for Uninsured/Underinsured Motorists (UM/UIM)
This type of insurance covers your costs if an accident is caused by a driver who isn't insured or who doesn't have enough insurance to cover your costs. This kind of insurance also pays for damage caused by a hit-and-run accident if you tell the police right away. In Texas, auto insurance is required, but this kind of coverage is a good idea to protect yourself from people who don't follow the law.
There are two kinds of UM/UIM coverage: damage to people and damage to property. Body injury insurance pays for medical bills, lost wages, pain and suffering, disfigurement, and permanent or partial disability. Property damage coverage pays for repairs to your car, the cost of renting a car, and damage to things in your car. Insurance companies must offer UM/UIM in addition to your car insurance. If you want to give up this protection, Texas law says you must do so in writing.
Coverage for damage to your car from a crash
This type of coverage pays for the cost of fixing or replacing your car after an accident, no matter who was driving or who was at fault. The most you can get is the actual cash value of your car minus your deductible. The market value of a car like yours before it was damaged is the actual cash value.
Coverage for physical damage that isn't caused by a crash.
This type of coverage pays to replace or fix your car if it is stolen or damaged by something other than a collision, like fire, vandalism, hail, or falling objects. If your car is stolen, comprehensive coverage will also pay for a rental car or another way to get around for a short time. If your car is stolen, your policy won't pay unless you tell the police. The most you can get is the cash value of your car minus your deductible.
Coverage for labour and towing
This covers the cost of having your car towed away if it can't be driven, as well as the cost of labour, like changing a flat tyre, at the place where your car broke down.
Rental Reimbursement Coverage
This type of coverage pays a set amount per day for a rental car if your car is stolen or being fixed because of damage covered by your policy.
Auto insurance in Texas can cover a lot more than just liability, and it can give you a lot more protection and peace of mind.
